Glossary

Early repayment charge
The cost you would incur if you paid off all or part of your mortgage before the end of the term. These are typically associated with Fixed, Capped or Discounted Rate Mortgages. They may apply if you pay the mortgage off within the fixed/capped/discounted period or they may apply for longer. You will need to take great care in assessing the impact of any redemption penalties applied to your mortgage.

Easement
A right for people over property that is not theirs, typically involving access. For example, the right for water in a pipe to cross another's property.

Encumbrance
Something that has a limiting or detrimental effects on the ownership of a property. For example a mortgages, lease, right of way or easements.

Endowment
A financial investment product which can be used to support the payment of your mortgage at the end of the term. These are typically associated with Interest Only Mortgages. It is essential that you take independent financial advice when considering an endowment policy.

Equity
This is the amount of money either put into buying the property, or the amount over and about the amount needed to pay off any outstanding mortgage if the property is sold.

Exchange of contracts (applies in England and Wales only)
The point in the purchase process when legally binding contracts are exchanged between the buyer/purchaser and seller/vendor. After this point the seller and buyer are committed to the sale and purchase of the property on the agreed terms. 
 
Existing liabilities expatriate
Your current financial outgoings before taking out a mortgage, for example, credit card, loan and maintenance payments etc. These will be taken into account when a lender assesses whether you will be able to meet the proposed monthly mortgage payments.

Expatriate
An individual who is working or living in a country which is not the place of his or her birth or nationality.