Glossary

Glossary

 

APR
The Average Annual Percentage Rate, also known as the “True Rate”, is used as a tool to assess the average interest payable on a mortgage over a seven-year period. This assessment also includes upfront fees, ongoing fees, and the interest payable on that mortgage over the seven years.

Additional or Accelerated Payments
This facility allows you to make greater payments than specified on a loan.

Account Fee
Many banks/lenders charge one off and, in some cases, ongoing account keeping fees for mortgages.

All-in One
All-in-one loans are usually variable and enable you to deposit all your income into the loan account. You are then able to draw on that money for day-to-day expenses. The purpose of this is to reduce the interest payable because the excess spare funds act as payments. enses.

Amortisation Period
This is the term or length of time of the loan as agreed upon.

Application Fees
Not all banks/lenders charge an application fee so it is worth checking if the lender you choose is one that charges a fee. In some cases, lenders who do not charge a fee offer a higher interest rate. Your First Choice consultant will explains all this to you.

Appraisal
Is a written report of the estimates value of a property. A qualified appraiser, usually employed by the bank/lender, conducts the valuation.

Appreciation
Is an increase in the value of a property as a result of inflation and market conditions.

Assets
An asset is anything you own that is worth money, including any savings, stocks or funds.

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