Mortgage Glossery

• A

  Approval in Principle 
  Provisional approval for a mortgage loan amount. There are conditions that you have to meet before we will make a formal offer, such a valuation, proof of income and identity.  But approval in principle means you can go house hunting with a good idea of how much you can borrow.

  APR – Annual Percentage Rate 
  The full rate of interest we charge over one year. It can also include fees and charges so you can see in one figure what we are charging.

  There are two main types of rate:
  

  • Fixed Interest Rate - A rate of interest on a mortgage that doesn’t change for a specified length of time, known as the fixed period, which makes it easy to budget for payments.
  • Standard Variable Rate - Our variable rate for mortgages. It can change over time, for example when we change our rates. We will always tell you when it is going to go up or down.

  Arrears
  Payments that have been missed on a mortgage.

• B

  BER - Building Energy Rating
  An energy rating from A1 (most energy efficient and colour coded green) to G (least energy efficient and colour coded red). Every home that is being bought or sold has to have a rating which is set by an assessor.

  Broker
  An independent advisor on mortgage deals available from various lenders.

• C

  Capital
  The amount you borrow, excluding costs and interest. Also known as the principal of the loan.

  Cost of Credit
  The difference between how much you borrow and how much you will have repaid by the end of the mortgage.

• D

  Deeds
  Official documents to show who owns the property .

  Deferred Start
  Delaying the first payment on your mortgage for six months. We spread the cost of these payments over the rest of the payments to keep the within the term of the mortgage.

  Deposit
  The initial amount you pay towards the cost of your new home. It is usually the difference between the cost of the property and the amount you are borrowing. You pay this directly to the seller’s solicitor. Be careful to check that the deposit is refundable in case something goes wrong. 

  Direct Debit Mandate
  Instructions that you sign for your bank to pay us each month for the debit your mortgage payment from your account. If the payment amount changes, for example with a variable interest rate, the direct debit will change automatically.

• E

  Equity
  The difference between your home’s value and what you still owe on the mortgage. This can be negative or positive.

• F

  First Time Buyer
  Someone who has never before borrowed money to buy a residential property or land on which to build one. For joint-applications, both parties must fit this description in order to qualify as first time buyers. There are often incentives for first time buyers from the government and lenders, such as tax relief, grants and reduced interest rates.

  Fixed Interest Rate
  A rate of interest on a mortgage that doesn’t change for a specified length of time, known as the fixed period, which makes it easy to budget for payments.

  Foreign currency mortgage loans
  When some or all of your repayments are in a currency other than euro, or you live in a country outside the euro zone, or the European Economic Area.

  Freehold
  Indefinite ownership of the property and land you are buying. It usually refers to the land on which the property is built, which can have separate ownership from the property itself.

• G

  Guarantor 
  Somebody, other than you, who guarantees to ensure you mortgage repayments are made.

• H

  Home Insurance Protection
  Insurance against serious damage to your property. You have to have this before we can start your mortgage. Get a quote.

• I

  Interest rates
  The rate of interest you will pay on the loan, which can be fixed, variable or a split of both (see also APR).

• L

  Leasehold 
  The right to occupy land and buildings for a specified period of time. It usually refers to the land on which the property is built, which can have separate ownership from the property itself.

  Letter of Loan Offer 
  A formal letter setting out the conditions of your mortgage, including any conditions. It is the contract between us which you sign to get the money for your mortgage.

  LTV 
  This stands for Loan to Value. We usually lend a percentage of the price of the property you are buying. A €90,000 mortgage on a property valued at €100,000 is 90% LTV. We have different rates of LTV depending on for example, whether it’s your first time to borrow, or the number of rooms in an apartment.

• M

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

  Moratorium 
  A mortgage payment holiday during which you can take a break from repayments or choose to only repay interest. We spread the cost of these payments over the rest of the payments to keep the within the term of the mortgage.

  Mortgage loan
  A long-term loan, usually 25 to 35 years, secured by a mortgage against your home.

• P

  Payment Protection Insurance 
  Optional cover to protect your mortgage repayments for up to 12 months in the event of accident, sickness, involuntary unemployment, business failure or critical illness.

  Principal private residence 
  Your home — the place where you usually live.

• S

  Standard Variable Rate
  Our variable rate for mortgages. It can change over time, for example when we change our rates. We will always tell you when it is going to go up or down.

• T

  Ts&Cs 
  The terms and conditions of your mortgage loan. They are set out in the pages of the Letter of Offer which you sign to show you agree to the Ts&Cs. This is a legal document.

• V

  Valuation 
  A report that sets the market value of a property before your mortgage is finalised. This costs €150 and can be arranged by contacting us on 0818 100 051.