Money Markets

The wholesale markets in which banks and other financial institutions lend money to one another. Mortgage lenders often borrow money in these markets, particularly for funding fixed rate mortgages.

Mortgage Adviser

A firm/ individual with permission for advising on regulated mortgage contracts.

Mortgage Refinancing

Mortgage refinancing typically refers to using a lower rate mortgage to consolidate other loans and reduce monthly outgoings.

The mortgage refinancing rate – as long as you choose carefully – should be a great deal less than you are paying for credit cards, unsecured loans or other finance and can therefore save you a significant amount each month. However, you may pay more over the term of the loan.

Mortgage Term

A mortgage term is the whole lifespan of a mortgage. This can be 5 to 30 years depending on the mortgage product you have selected. Some mortgage terms are restricted by a maximum age rather than a maximum term. You’re expected to have repaid your mortgage by the time you reach the end of your mortgage term. If you’re on an interest-only mortgage, then this will be via a one off payment at the end. If you’re on a repayment mortgage, this will be via monthly payments. You would often remortgage onto a new product before reaching the end of the mortgage term on your existing deal to avoid going onto your lender’s SVR. Many people remortgage a few times during the course of the mortgage term to ensure that get the best deal.