Mortgage glossary (UK)

Plain-English definitions with deep links into our tools. Phase 1 covers the terms you hit most when remortgaging.

Early repayment charge (ERC)

A fee some lenders charge if you repay some or all of a mortgage during a deal period, often calculated as a percentage of the balance or as months of interest.

Loan to value (LTV)

Your mortgage balance divided by the property value, expressed as a percentage. Lenders price many products in LTV bands (for example up to 60%, 75%, 85%, 90%).

Product transfer

Moving to a new deal with your existing lender without a full remortgage to a different lender — often with lighter underwriting, but not always the cheapest rate.