Jargon Explained

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Adverse Credit
This term is used to describe Credit Problems due to a poor credit history. CCJ's, Mortgage Arrears and other credit debt repayment problems leads to Adverse Credit. When used to describe: Adverse Credit Mortgages or Adverse Credit Loans they mean Mortgages or Loans for people with Credit Problems or Poor Credit Rating

APR
APR or Annual Percentage Rate takes into account the amount of interest you will pay and the term of the mortgage. So the higher the APR the more you will pay, the lower the APR, the less you pay.

Arrangement Fees
Lenders are known to charge arrangement fees or fees for setting up your mortgage to cover any work involved in arranging your mortgage. These fees are usually added to your mortgage.

Arrears
Mortgage Arrears is used to describe missed or late mortgage repayments. If you stay in arrears you are likely to end up with a County Court Judgment or CCJ. This can also be described as defaulting on your mortgage or Mortgage Defaults.

Bad Credit
This another term used to describe Credit Problems due to an adverse credit history. CCJ's, Mortgage Arrears and other credit debt repayment problems leads to a Bad Credit Rating. Bad Credit is more of an American term with the UK more commonly using Poor Credit. When used to describe: Bad Credit Mortgages or Bad Credit Loans they mean Mortgages or Loans for people with Credit Problems or a Poor Credit History.

Bank of England Base Rate
This is set by the Bank of England and can alter quite regularly. Lenders then put there interest rate on top and depending if you have a capped rate or variable rate your repayments will go up or down. Any changes to the rate are announced by the Bank of England's Monetary Policy Committee.

Black Listed
All your credit history will be stored on databases by credit reference companies. A lender will check these to find out your credit status. If you have a severe credit history and your record will be black listed to note severe risk. Some lenders will still lend on this but the interest rate will be high until you can improve your credit history.

Buildings Insurance
All mortgage lenders will insist that the property has Buildings Insurance. This covers their investment in your property but most of all it covers your property against fire, flood and subsidence etc.

Buy to Let
This is a method to invest money in property. You will need a Buy to Let Mortgage if you want to rent or let the property you want to buy.