Glossary

Part capital and interest
A combination of two types of mortgage where the mortgage is repaid partly on a capital and interest basis and partly by another method. Typically, part of the mortgage would be paid off using an investment product such as an ISA or a pension.

Payment method
The way in which the mortgage is repaid at the end of the term.

Payment protection insurance
See Accident, Sickness and Unemployment Insurance.

Pension
An investment product that can be used to pay off a mortgage. You should take advice from an Independent Financial Adviser when considering taking out a pension or if you are considering a mortgage repayable by a pension plan.

Polarisation
Under the Financial Services Act (1986) an investment adviser is either tied (able to advise on the products of one company) or independent (able to advise on products from a range of companies).

Portable
If a mortgage is portable, you can move it on to a subsequent property if you sell the property on which the mortgage was taken out as long as certain conditions, such as that the new property has sufficient value, are met. If you are taking out a fixed, capped or discounted mortgage and think you will move within the fixed/capped/discounted period you should ensure that the mortgage is portable or be aware that you could face early redemption penalties.

Previous lender reference
If you are taking out a mortgage and have had one in the past, it is common for your new lender to ask your old lender whether you kept up the payments on the loan.

Professional
People who are employed in certain professions such as Accountants, Lawyers etc are able to borrow using higher income multiples or even obtain a slightly better interest rates as they are seen as safer borrowers than some other employment categories.