Glossary

​Acceptance Fee

The fee charged to process a mortgage application.

Accountable Trust Receipt/ Security Release Fee

This fee will apply when ICS Mortgages remove their legal charge from the security held against the borrowers' mortgage. This is a cost to be paid on a one-off basis. It is a release of charge against the property upon completion / redemption of the mortgage loan.

Accountable Trust Receipt/ Security Release Fee

This fee will apply when ICS Mortgages remove their legal charge from the security held against the borrowers' mortgage. This cost is to be paid on a one-off basis. It is a release of charge against the property upon completion/redemption of the mortgage loan.

Accountable Trust Receipt/ Security Release Fee

This fee will apply when ICS Mortgages remove their legal charge from the security held against the borrowers' mortgage. This cost is to be paid on a one-off basis. It is a release of charge against the property upon completion/redemption of the mortgage loan.

Annual Percentage Rate (APR)

This is the yearly cost of your borrowing. It takes into account the interest rate charged and any other fees. Lenders are always required to quote the Annual Percentage Rate (APR) when advertising a loan. This is to help customers compare the true cost of borrowing.

​Annuity (or Repayment) Mortgage

Also referred to as a capital and interest mortgage (the most common type of mortgage), where the monthly repayment consists of an amount to repay the capital (original loan amount) plus an amount towards the interest that is charged to the mortgage account.

​Approval in Principle (AIP)

Also called a sanction in Principle is provisional approval for a mortgage loan amount and term subject to evidence of income and employment, proven repayment capacity and any other special conditions the lender may issue.

​Arrears

Mortgage repayments that have not been paid.

​Broker

Also called an Intermediary or mortgage advisor, offers advice on the various mortgage products and options available from a selection of lenders.

​Building Energy Rating (BER)

This is an energy label and report for homes. The rating is on a scale A to G. A-Grade homes are the most energy efficient and have the lowest energy bills.

​Buy-to- Let Mortgage

Also called an Investment mortgage. This is a mortgage for a property that will not be lived in by the borrower but rented out to tenants. The property is a source of income and investment for the buyer and Buy to Let mortgages have different conditions than those applicable to owner occupier mortgages (we will have a click through button here once BTL section is switched on)

​Capital

The amount owed excluding costs and interest. This is also called ‘the principal’ of the mortgage.

​Collateral

This is the security offered against the value of the Mortgage. The property being purchased is considered the primary collateral for the loan and the borrower will be liable for any shortfall if the property is sold for an amount less than the outstanding loan, including any accrued interest, charges, legal, selling and other related costs if this is the case.

​Cost of Credit

The Cost of Credit is the difference between the amount you borrow and the total you repay, including the interest, by the end of the loan period.

​Credit Rating

The rating that lenders put on borrowers based on their credit worthiness. The lender obtains credit references from a credit reference agency to enquire on your credit history and this may influence your ability to obtain a loan.

​Deeds

These are the official documents of ownership.

​Deposit

The initial sum paid to the seller for the purchase of a property. The buyer could forfeit this is they don’t complete the transaction.

​Depreciation

Any decrease in the value of a property.

​Direct Debit Mandate

By signing a direct debit mandate, you authorise the lender to send instructions to your bank to debit your account in accordance with the instructions received. This allows you to pay your monthly mortgage amount from your current account. If your repayment amount increases or decreases this will automatically be reflected in the amount debited from your current account.

​ECB (European Central Bank)

The European Central Bank is the central bank for Europe’s single currency, the Euro.

​Equity

The difference between a home’s value and the outstanding mortgage debt.

​First Legal Charge

A mortgage lender takes a First Legal Charge on the property being purchased. If a borrower defaults on their mortgage repayments and the property is sold to repay debts etc., the mortgage lender will be the first party to receive any proceeds of the sale.

​Fixed Interest Rate

The rate on a mortgage which doesn’t change for a specified period. This is known as the fixed rate period.

​Freehold or Leasehold

A freehold title gives the holder ownership of the land and buildings for an indefinite period. A leasehold title gives the holder a right to use and occupy land and buildings for a defined period of time.

​Guarantor

A guarantor is a person other than the borrower who guarantees loan repayments.

​Home Insurance

You need a home insurance policy in place before you can draw down your mortgage. This is to cover damage by fire or flooding, burglary or someone injuring themselves on your property.

​Letter of Offer

Once a mortgage application is approved, a formal Letter of Offer is sent to the borrower setting out the conditions of the loan. The borrower’s solicitor also receives a copy.

​Loan to Value (LTV)

Loan to values are shown as percentages and represent the difference between your mortgage loan and the value of your property. For example, a mortgage of €90,000 on a property valued at €100,000 would be shown as 90% Loan to Value.

​​Maturity Date

The last date of the mortgage agreement – the day the mortgage loan must be paid in full or the agreement renewed.

​Moratorium

A moratorium is a payment holiday that allows you to take a break from your mortgage or reduce your payments for three months. You can reduce your repayments by the full amount or partially by a selected amount. During your payment holiday, you will need to pay your insurance costs such as life assurance and home insurance. You can avail of the payment holiday option up to three times during the life of the mortgage.

​Mortgage Loan

A long-term loan, usually 20 to 35 years, secured by a mortgage against the borrower’s property.

​Mortgagee

The lender providing the mortgage loan.

​Mortgagor

The person who takes out the mortgage loan i.e. the borrower.

​Negative Equity

When the value of the property has fallen below the outstanding mortgage debt.

​Payee

Payee means the receiver of a payment.

​Payer

Payer means the maker of a payment.

​PDH – Private Dwelling House, The home

Principle private residence. A person’s primary residence where they normally live. A person can only have one primary residence at any given time.

​Principal

The sum of money borrowed from the lender – generally what is owed, not including the interest. This is also known as capital.

​Repayment Break

Repayment Breaks allow the borrower to spread monthly repayments over a shorter number of months, for example, 10 months instead of 12, or postpone repayments for a time, for example, 3 months.

​Residential Investment Property – also known as Buy to Let (BTL)

A property that is not occupied by the owner, usually purchased specifically to generate profit through rental income and/or capital gains.

​Risk

The possibility that the investment will not yield any/as much return as expected or hoped for.

​Security

Also referred to as collateral, security is an asset(s) belonging to you which you have assigned to the Bank. The Bank has the right to sell or apply the asset(s) towards payment of the debt in the event that you default on the borrowing.

​Standard Variable Rate (SVR)

This is a rate set by the lender, which may move up or down.

​Tax Relief at Source (TRS)

Tax relief is available for home mortgage interest in certain circumstances. This applies in respect of a main residence only. The tax relief is granted at source and is administered by the lender. The lender either reduces the mortgage repayment by the amount of the tax relief, or a credit is lodged into the account from which the repayments are made.

​Term of Loan

The agreed period of time for the customer to make full repayment of the loan.

​Title Deeds

Legal documents that provide evidence of a person’s ownership of a property.

​Top-Up Mortgage

An additional amount of money lent to an existing borrower. This is usually for the purpose of home improvements.

​Valuation Survey

This report, which is carried out by a professional valuer, gauges the market value of your property. It is important to remember that this report is different to a structural or planning survey.

​Variable Interest Rate

This is an interest rate that may rise and/or fall over the period of the borrowing.