Arrangement – An agreement between you and your lender to help you pay off
Arrears – Any amount overdue and owed to the lender including missed payments.
Bank Giro Payment – A payment slip a customer uses to instruct a bank to
credit an amount of money to another account. It is not a payment by itself since
it has no value. Please note that it is vitally important that you include your mortgage
Bank of England Base Rate – The base rate set by the Bank of England’s Monetary
BTL – Buy-to-Let - a mortgage that is used to buy a residential property
that is rented out to a third party (non-family member).
Capital Reduction – part capital repayment of a proportion of the amount
borrowed, over and above your regular monthly payment. (May be subject to Early
CCJ – County Court Judgement – a judgement made against a person or company
for debt. A CCJ may affect your credit rating and will appear on your credit file
for up to 6 years.
CMI – Contractual monthly instalment – agreed monthly payment.
Courtpack (England and Wales only) – The Court will send you a pack containing
the following: details of when the hearing will take place and at which County Court;
a defence form which will allow you to provide your financial information and details
of your circumstances. This should be completed and returned to the County Court.
Discount Rate – an interest rate on a mortgage or loan that is set at a reduced
rate for a fixed period of time.
Direct Debit – an instruction given by you to your bank to make regular payments
to a third party.
DWP Payments – Department for Work and Pensions (DWP) – These payments can
be arranged when a customer requests help with their mortgage payments from the
DWP, formerly referred to as the Department of Social Security (DSS).
After the relevant forms are completed by the customer and Acenden, the DWP can
assess the amount they can contribute. Payments that are received from the DWP help
towards mortgage or loan interest payments and are paid directly to Acenden.
For further information, please contact your local DWP office
ERC – early repayment charges – a charge made if you repay some or all of
your mortgage early. Please refer to your original mortgage letter.
Eviction Date – This is an appointment with the bailiff, also known as a
Balliff’s appointment. The Court bailiff and a locksmith will attend your property
on the date and time scheduled and you will be required to leave the property.
Field Agents – debt advisors (but not financial advisors) who will visit
you to gain an understanding of your current financial position and discuss clearance
of arrears. The lender will in certain circumstances arrange a visit, or the customer
can request it if their account is in arrears.
Freeholder – the owner of a freehold, i.e. a person who owns land or property
and not under a lease.
Ground Rent – a regular rent payment due on land held under a lease which
is payable by the leaseholder to the freeholder. Please also see
Interest only – a mortgage product where only the monthly interest is paid,
but the capital amount borrowed is not. As the capital will still be outstanding
at the end of the mortgage term, interest only mortgages rely on an alternative
savings plan to pay off the capital at the end of the term. Under an interest only
mortgage your mortgage payments do not include the costs of a savings plan or any
other investment you may have arranged to build up a lump sum to repay the amount
Land Registry – a government body which maintains records of land and property
Leaseholder – the owner of a lease; i.e. a person who owns land or property
under a lease for a fixed number of years (the term of the lease).
Lender – the firm that lent you the money to purchase or remortgage your
home and, in return, took security by way of a legal charge over the property or,
where your mortgage lender has sold the legal or beneficial interest in your loan,
the current owner of that interest.
Let-to-Buy – where the applicant is proposing to rent out their current residential
property in order to fund a new purchase.
LIBOR - London Interbank Offered Rate – the rate charged by one bank to another
for lending money in London. For further information
please visit our interest rates page.
LMC – London Mortgage Company.
LPL – London Personal Loans.
LTV – Loan to Value - the amount of a loan as a percentage of the property’s
Possession Order – Where a Judge grants an order to the lender for possession
of the property on a certain date.
Preferred – Preferred Mortgages Limited.
Redeem – to pay off the outstanding amount of a loan, plus any fees and charges
that may apply, such as early repayment charges.
Remortgage – replacing one mortgage with another.
Repayment (Capital & Interest) – a mortgage which pays off both the capital
and interest in monthly installments within a specified number of years.
Right-to-Buy – a purchase transaction where the applicant is buying the property
from a Registered Social Landlord, usually at a discounted price.
Sale of land – a transaction that can be undertaken if a customer wants to
sell part of their land.
Service Charges – charges levied by landlords
to recover the costs incurred in providing services to a leasehold property, such
as general maintenance, repairs, and buildings insurance.
SPML – Southern Pacific Mortgage Limited.
SPPL – Southern Pacific Personal Loans Limited.
Standing Order – this is an instruction given by a bank account holder to
their bank to pay a set amount at regular intervals. This can be monthly to another
account to pay a mortgage.
Suspended possession order – this means that an order for possession of your
property is granted by the Judge. However, it is suspended and your lender cannot
enforce the order, and thereby take possession, as long as you maintain the terms
and any payment arrangement required by this order.
Transfer of Equity – equity is the value in your property over and above
any amounts owed on your property. A transfer of equity is when you sell (or transfer)
your ownership or interest in the equity of that property to another person.
Valuation – this is an inspection of a property on which a mortgage is to
be secured. It is carried out on behalf of the lender to ascertain the value of
the property and advise the lender whether it is suitable security for the loan.
Valuer – a qualified chartered surveyor who inspects a property and provides
Vendor – the party that is selling the property.