Mortgage Glossary Letter "R"

A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z

Click on the letter or the term you wish to have defined. You will them be take to a page with an explanation for what the term means

• Redemption
• Redemption Penalty
• Regional Lenders
• Registered Title
• Remortgage / remortgaging
• Repayment Mortgage
• Reservation Fee
• Restrictive covenant
• Retention

Redemption

In property terms, this is the right of the borrower to recover mortgaged property on repayment of the loan and interest. This means that, once the mortgage is paid off, the property belongs to the person who has paid it. See also: Form 53.
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Redemption Penalty

This is a charge made by some lenders if the borrower pays off a mortgage before an agreed period of time has elapsed, in order to own the house, sell up or re-mortgage. The penalty may vary in amount depending on how long the borrower has had the mortgage for.
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Regional Lenders

These are usually smaller local building societies who only arrange mortgages within a particular local area.
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Registered Title

This is the right of ownership of a property that is registered with the HM Land Registry.
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Remortgage / remortgaging

This is another term for switching mortgages on a property. Borrowers might do this to save money, and switching can involve changing to another scheme with the same lender or to another lender. Switching lenders can be a far more expensive option as it will incur transaction charges and possible an early repayment fee.
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Repayment Mortgage

This is one of the commonest types of mortgage, where the monthly repayment includes part of the loan amount and the interest charged. If the monthly repayments are consistently made, the mortgage is guaranteed to be paid off at the end of the term. In the early years of this type of mortgage, most of the monthly repayment covers interest, and the debt reduction gathers pace as time goes on.

Also known as an Annuity mortgage or Capital and Interest mortgage.
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Reservation Fee

This fee reserves the funds you intend to borrow. Also known as an administration fee or booking fee.
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Restrictive covenant

This is a condition that must be met by the owner of a freehold property, as set out in the deeds to the property. A restrictive covenant is also sometimes imposed on leasehold owners. Conditions may include being prevented from building an extension or running a business from the property.
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Retention

This refers to the money your mortgage lender may withhold until certain conditions are met, such as improvements or repairs to the property.
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