Glossary

Rate type
Is the term used to describe the main feature of the mortgage, ie Fixed Rate means that your mortgage repayment is fixed.

Redemption
Means the repayment of the mortgage.

Redemption fee
When a loan is redeemed (paid off) early, either in part or in full, many lenders charge a fee, particularly if the mortgage has a Fixed, Discounted or Capped rate. See Early Repayment Charge.

Regional lenders
Lenders that restrict the areas in which they lend.

Remortgage
The term used for a mortgage that replaces another mortgage, i.e. the applicant is not moving home. He may borrow more or less money than the current loan.

Repayment mortgage
See Capital and Interest Mortgage.

Repossession
The term for the legal process by which a borrwer who has not paid his mortgage can be evicted and the property sold.

Retention
If there is a fault in the property ie damp, a lender may retain part of the mortgage to ensure that the applicant carries out the repairs. This money is repaid to the client when the repairs have been completed.

Right to buy
Sitting council tenants can be offered the right to buy their property from the council usually at discounted rates. Some lenders do not assist with these types of property. There are usually restrictions on when the applicant can sell the property.