Jargon Buster

Early Redemption Charge

This is an extra amount charged on some mortgages if you repay all of your loan before a specified date or period of time.

Endowment Mortgage

A mortgage where the interest only is paid to the lender which often requires a separate insurance policy with the aim to pay off the mortgage at the end of the agreed term.

Equity

The difference between the amount of money you owe on your mortgage and the value of your home.

Essential repairs

Work that must be done on the property before the mortgage loan can be issued.

Excess

The fixed sum paid by the claimant on an insurance claim by the policy holder.

Exchange of Contracts

The point at which signed contracts are physically exchanged legally commits the buyer to buy and the seller to sell a property at an agreed price.