P
Part Interest Part Repayment
When you pay off some of your mortgage as you go, but not all of it.
When the mortgage comes to an end, there will still be some money left to pay off.
Peppercorn Rent
A token or nominal rent (often £1).
Paid by way of consideration, in order to:
- Form a legally binding contract, and
- Create a legal relationship between landlord and tenant
Porting
The ability to move your:
- Current mortgage balance, and
- Deal
To a different property with the same lender.
There are no charges or restrictions.
Power of Attorney
Allows one or more person, known as an attorney, to make financial decisions on a clients behalf.
R
Right To Buy (RTB)
A council or local government scheme that allows council tenants to buy their home at a lower price.
S
Shared Equity Scheme (SES)
A government scheme that:
- Gives a borrower a loan
- Which will form part of the deposit to purchase a property
The borrower would then take out a residential mortgage on the remaining part of the property value.
The borrowed part of the loan will need to be paid back:
- On sale of the property, or
- After a set period of time (commonly five years)
Shared Ownership
A scheme where a person can buy a certain share of a property.
This can be done:
- Outright, or
- By getting a mortgage and paying rent to a landlord for the rest
- The landlord is usually a building/management company, or local authority
The scheme offers the person the opportunity over time to:
- Increase their share within the property (known as staircasing) and
- Eventually own the property in full
This offers an affordable way to get on the property ladder.
Standard Variable Rate (SVR)
The interest rate that is charged by the bank or building society.
This is after the initial fixed or tracker rate period comes to an end.
T
Tenants In Common (TIC)
This is where owners of a property have different shares in it. Shares are shown as a %.
Upon passing of either party, their share will pass to their estate. Instead of going to the remaining owner.
Tracker Rate
A type of variable rate that tracks a base rate. Such as the bank of England base rate, below a certain %. This can be either for a set period, or open period of time.
If the base rate goes up, so will the tracker rate. This could make the rate being paid higher or lower.
True Cost
This is the overall amount you will pay in:
- Capital borrowed
- Interest paid
This is over a set period of time. Usually the period of a fixed rate deal. It includes any fees and costs attached to a mortgage deal.