Glossary

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.

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

These are the official documents of ownership.

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

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.

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

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.

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.

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

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

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

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

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.

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