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Mortgage glossary - A

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Mortgage terms defined on this page:



Accident, sickness and unemployment insurance

This is an insurance policy rather like the ‘payment protection’ you might take out for a loan. The policy normally pays a percentage of your normal monthly mortgage repayment (plus insurance) if you’re unable to work due to accident, sickness or unemployment/redundancy.
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Added to loan

Your lender might add extra costs to your mortgage – these may include indemnity, administration or arrangement fees. Your agreement might state that these are ‘added to loan’ – they’re part of the mortgage amount you must pay back, with interest.
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Additional security fee

See Higher Lending Charge.
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Administration fee

This is charged by some lenders at the start of the mortgage term, and might not be refundable if your mortgage application is denied. The fee will often form part of your valuation fee.
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Advance

The amount you borrow is called the ‘advance’.
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Agricultural restriction

Also known as an Agricultural Planning Restriction, this a freehold covenant that restricts the occupancy of a property to those engaged in agriculture.
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Annual Percentage Rate (APR)

This is the amount you’ll pay in interest over a year. When choosing a mortgage, you should also take any extra fees and costs into account.
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Annuity Mortgage

See Repayment Mortgage.
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Apportionment

Your solicitor should be able to take care of apportionment. It involves making sure you only pay the utility and council tax bills for the period in which you own the property.
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Arrangement Fee

This fee applies particularly to fixed rate and discounted rate mortgages. You might have to pay it up front, or have it added to the total loan amount. Some lenders will deduct it from the loan on completion. Some lenders will call it an administration fee, and it normally covers administration and the reserving of your funds.
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Arrears

This is any contracted mortgage payment not made by the due date. Arrears can negatively affect your credit rating and you might find it difficult to obtain credit in the future if you have them. There are lenders who will consider lending to those with poor credit, but this type of loan or mortgage will normally cost more than usual because of high risk.
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Authority to Inspect the Register

This is written notification from the current owner of a property, allowing another party to inspect information on the proprietorship register at the HM Land Registry.
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THINK CAREFULLY BEFORE SECURING ANY DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.