Riach Financial

Jargon Buster

Helpful information…

Riach Financial

Jargon Buster

Helpful information…

Jargon Buster


This is a mortgage where the interest rate is fixed at the start of the term for a period of years. During that time the monthly payment will not change providing you do not miss any of the payments or pay less than the amount due to the lender.


A tracker mortgage is a type of variable rate mortgage. It follows the Bank of England base rate during a specified period, so your repayments can vary – go up or down.

The interest rate you pay on tracker mortgages is variable and is an agreed percentage above the Bank of England’s base rate. As the base rate rises and falls, your interest rate will track these changes, and this will affect your monthly payments accordingly.


A discounted mortgage is a mortgage where the interest rate is set a certain amount below the lenders Standard Variable Mortgage rate (SVR).  This could be for either a set period or the whole of the mortgage term.  The SVR is the interest rate set by your lender, which it can raise or lower by any amount, at any time.  However, a discounted mortgage is a type of variable-rate mortgage meaning the amount you pay could change from month to month.


An offset mortgage is a type of mortgage that is linked to a savings account taken out with the lender. The money in your savings isn’t used to pay off your mortgage. Instead, it’s used to lower the total interest you’ll be charged on your repayments each month.

This can either make your mortgage repayments cheaper or reduce the term of your mortgage, but you won’t earn any interest on those savings your mortgage is ‘offset’ against.

Lenders ‘take away’ the amount in your savings account from how much you owe on your mortgage. You’ll only pay interest on what’s left.


A Standard Variable Rate (also known as Standard Mortgage Rate or SMR) is the standard interest rate offered by a mortgage lender. It’s the rate your mortgage reverts to after the end of the initial deal unless you chose another deal with the lender or remortgages to a new lender.


A capital and interest mortgage (often called a Repayment Mortgage) is the most common type of mortgage being offered at the moment. With this type of mortgage, you’ll make monthly repayments for an agreed period of time (known as the ‘term’ of the mortgage) until you’ve paid back both the capital and the interest.

This means that the amount you owe will get smaller every month and, as long as you keep up the repayments, your mortgage will be repaid in full at the end of the term.


When you take out an interest-only mortgage, your monthly payments pay back the interest on what you’ve borrowed, rather than the sum itself.

At the end of the term, you pay back the full amount outstanding in one lump sum.


This feature allows you to move the product you currently have over to a new property if you move house. The interest rates and monthly payments will remain the same after the house move although any additional money you borrow to purchase your new home will be subject to the rates and lending criteria available at the time you apply for the mortgage to be ported.


This is a charge made by a lender if you repay all your mortgage or part of it before the date at which the initial deal ends. The amount of the charge can be found on your illustration and will vary depending on how early in the term you make the repayment.


Remortgaging is the transfer of a mortgage from one lender to another. You continue to live in the same house, but your monthly payments are made to a different lender. The purpose of Remortgaging is often to obtain a more favourable interest rate when your current deal has expired, but it may also be used to raise additional funds – for home improvements, to repay other debts etc.


A product transfer mortgage is a remortgage with your current mortgage lender. It involves switching to a new mortgage deal with them when your current deal runs out.


LTV or Loan-to-Value is a ratio of the size of your mortgage loan compared to the value of the property and expressed as a percentage.


APRC shows you, as a percentage, the annual cost of your mortgage over its lifetime. It brings together all the charges (such as fees) plus the interest rate on your initial deal and the interest rate you’ll be charged when your deal expires.


A guarantor mortgage (also known as a family-assisted mortgage) is a mortgage deal where another person agrees to take on responsibility for your repayments in the event that you can’t pay. That person is known as the ‘guarantor’ and is usually a family member or close friend of the mortgage applicant.


Debt consolidation is the act of taking out a single loan to pay off debts.  You can use a secured or unsecured loan for a debt consolidation.

Expert Advice

Getting a mortgage can be a challenging and complicated process. That’s why you need regular access to expert guidance and support from people you know you can trust. Our aim is to provide you with professional knowledge of the market and excellence in customer service whilst being on hand to help every step of the way.

We’re committed to helping you fully understand the broad range of options available to you so that you can work with us to make an informed decision about the product that is most suited to your individual requirements.

Contact Our Advisors


38-40 Doncaster Road
North Lincolnshire, DN15 7RQ


Monday - Friday
07:00 - 17:30
09:00 - 12:30


01724 276000

Details submitted through this form are confidential. We will process any personal information collected in this form in accordance with our Privacy notice. The information therein is used only to contact you to discuss the areas you've expressed an interest in.

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We can also deal with clients face-to-face in one of our 10 offices. We can also deal with client and prospects over the telephone or by video chat.


100 Alfred Gelder Street, Hull
East Yorkshire, HU15 2AE


15A Wednesday Market
Beverley, HU17 0DH


Spaces Victoria, 25 Witton Road
Victoria, London, SW1V 1LW


10 Dudley Street, Grimsby
North Lincolnshire, DN31 2AB


The Pearl, New Bridge Street
Newcastle upon Tyne, NE1 8QQ


Blake House, 2A St Martins Lane
York, YO1 8LN


17-21 West Parade
Lincoln, LN1 1NW


1a Kingston Road, Willerby
East Riding of Yorkshire, HU10 6AD


1 King Street
Barton-upon-Humber, DN18 5ER


With us, progress means development. Financial and life planning that helps you to navigate life’s financial complications, free of financial ambiguity and safe in the knowledge that the professional team is at your side, every step of the way.


Riach Financial Ltd
38-40 Doncaster Road
North Lincolnshire
DN15 7RQ
T: 01724 276000
E: enquiries@riachfinancial.co.uk


Copyright 2023 Riach Financial Ltd
All rights reserved
Appointed representative of Sesame Ltd which is authorised and regulated by the Financial Conduct Authority

The information given in this website does not contain all of the details you need to choose a mortgage. Make sure that you read the separate key facts illustration before you make a decision. The FCA does not regulate some forms of buy to let mortgages.

If you have a complaint or dispute with us, you are entitled to make a complaint. We have a complaints procedure that is available on request. If you wish to register a complaint, please contact us either in writing, by telephone or email. Please be assured we treat complaints seriously. For your protection if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (FOS).

Riach Financial LTD is an appointed representative of Sesame Ltd which is authorised and regulated by the Financial Conduct Authority. FCA Register No 966934. Registered in England under reference 13361374. Calls may be recorded for training and monitoring.