English Glossary

APR
The Annual Percentage Rate. This is the percentage of interest you will pay each year on your loan or mortgage. It is the method used to compare one product with another, or to describe the total charge for credit over the term of the loan.

CAPITAL
This describes the initial amount that you borrow from us.

COMPLETION
Completion is the final legal transfer of ownership of the property - when the property legally becomes yours. At V.B. Financial Services S.L., we keep delays to a minimum and complete as soon as possible.

CREDIT SEARCH
This check is carried out by a Credit Reference Agency to help us assess your application. It will reveal details about your credit history, together with information about credit agreements you have with other organisations. Even if your credit search reveals credit problems in the past, you shouldn't worry. We treat each case individually, and can probably still help you.

DECISION IN PRINCIPLE
Based on the information you provide, we can normally let you know very quickly if we are likely to offer you a mortgage. This is a decision in principle, made subject to references, valuation and other conditions.

EQUITY
This is the amount of money you would have if you sold your home. To calculate this, subtract the value of your outstanding mortgage and any secured loans from the current value of the property.

EXCHANGE
The exchange takes place when you pay your deposit, and agree a completion date.

FREEHOLD
A freehold property is one where you are the outright owner of the land the property is built on - as well as the bricks and mortar.

INITIAL RATE
This is the rate of interest you pay when you first begin to repay your mortgage.

LEASEHOLD
With a leasehold property, you have the right to live there for a specified length of time, without owning the land the property is built on. As a leaseholder you may have to pay rent or service charges to the landowner.

LTV (Loan to value)
The loan to value ratio is the size of your mortgage as a percentage of the purchase price. For instance, if you borrow 60,000 on a property valued at 100,000, your LTV would be 60%.

REMORTGAGE
A remortgage is when you decide to switch your existing mortgage without actually moving house. You may well want to remortgage if you are looking to raise extra cash or save money on your repayments.

VALUATION
This is a professional check carried out by a surveyor to be sure of the value of your property