--- title: "Definitions: I to O" description: "A dictionary of the mortgage and property finance terms used across Mortgage Lane, each defined in full, searchable, and listed with the pages that use it. Terms I to O." url: "https://mortgagelane.com/definitions/3" site: "Mortgage Lane" date: "2026-10-01" reviewed: "2026-10-01" reading_time: "69 min" language: "en-GB" robots: "index,follow" --- # Definitions: I to O A dictionary of the mortgage and property finance terms used across Mortgage Lane, each defined in full, searchable, and listed with the pages that use it. Terms I to O. ## Definitions Every term we use across the site, defined in full and in one place. Search it, filter it by subject, and see which pages each term is used on. [A](https://mortgagelane.com/definitions#dict-a) [B](https://mortgagelane.com/definitions#dict-b) [C](https://mortgagelane.com/definitions#dict-c) [D](https://mortgagelane.com/definitions/2#dict-d) [E](https://mortgagelane.com/definitions/2#dict-e) [F](https://mortgagelane.com/definitions/2#dict-f) [G](https://mortgagelane.com/definitions/2#dict-g) [H](https://mortgagelane.com/definitions/2#dict-h) [I](#dict-i) [J](#dict-j) [K](#dict-k) [L](#dict-l) [M](#dict-m) [N](#dict-n) [O](#dict-o) [P](https://mortgagelane.com/definitions/4#dict-p) [Q](https://mortgagelane.com/definitions/4#dict-q) [R](https://mortgagelane.com/definitions/4#dict-r) [S](https://mortgagelane.com/definitions/5#dict-s) [T](https://mortgagelane.com/definitions/5#dict-t) [U](https://mortgagelane.com/definitions/5#dict-u) [V](https://mortgagelane.com/definitions/5#dict-v) [W](https://mortgagelane.com/definitions/5#dict-w) Page 3 of 5 [A–C](https://mortgagelane.com/definitions) [D–H](https://mortgagelane.com/definitions/2) I–O [P–R](https://mortgagelane.com/definitions/4) [S–W](https://mortgagelane.com/definitions/5) - I15 terms - [Income payments agreement (IPA)](https://mortgagelane.com/definitions/3#def-income-payments-agreement)Regulation — A written agreement under which a bankrupt pays part of their income to the trustee for a set period of up to three years, which can continue after discharge.Income payments agreement (IPA): Full definition · used on 1 pageAn income payments agreement is made between the bankrupt and the trustee or the official receiver where the bankrupt's income is more than they need for reasonable domestic needs. It sets the amount and the period, which may run past discharge but cannot end more than three years after the agreement is made ([Insolvency Act 1986, section 310A](https://www.legislation.gov.uk/ukpga/1986/45/section/310A)). Where no agreement is reached, the court can make an income payments order to the same effect.The payments must continue until the agreement ends, even after the [bankruptcy](https://mortgagelane.com/definitions#def-bankruptcy) itself has ended. A mortgage lender counts them as a commitment when it assesses [affordability](https://mortgagelane.com/definitions#def-affordability), so they reduce the amount it will lend on income while they run. — Used on · [Mortgages After Bankruptcy, Discharged Bankrupts and DROs](https://mortgagelane.com/mortgages/bankruptcy-mortgages) - [Income protection insurance](https://mortgagelane.com/definitions/3#def-income-protection)Insurance — Insurance that pays a monthly income, a proportion of your earnings, if illness or injury stops you working, starting after a waiting time called the deferred period.Income protection insurance: Full definition · used on 11 pagesIncome protection insurance, also called permanent health insurance, replaces part of your income if illness or injury stops you working. It pays a monthly benefit after a [deferred period](https://mortgagelane.com/definitions/2#def-deferred-period) chosen at the start, and keeps paying until you return to work, the benefit period ends or the policy ends. The benefit is a proportion of earnings, up to a maximum each insurer sets. Policies differ in the occupation test they use, such as [own occupation](https://mortgagelane.com/definitions/3#def-own-occupation), and in whether the benefit period is full term or limited for each claim.It is a pure protection contract with no cash-in value, and advising on or arranging it is insurance distribution regulated by the [Financial Conduct Authority](https://mortgagelane.com/definitions/2#def-financial-conduct-authority) under its Insurance: Conduct of Business sourcebook (ICOBS). Benefit from a personal policy you pay for yourself is free of income tax ([legislation.gov.uk: ITTOIA 2005, section 735](https://www.legislation.gov.uk/ukpga/2005/5/section/735)); benefit from a policy an employer pays for is taxed as earnings. It differs from [critical illness cover](https://mortgagelane.com/definitions#def-critical-illness-cover), which pays a lump sum on diagnosis of a listed condition whether or not you can work. — Used on · [Critical Illness Declined, Exclusions and Alternatives](https://mortgagelane.com/insurance/critical-illness-declined) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Insurance](https://mortgagelane.com/insurance) · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) · [Life Insurance When Declined, Refused or Postponed Cover](https://mortgagelane.com/insurance/life-insurance-when-declined) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · [Single Person Mortgages, Buying Alone and Applying Alone](https://mortgagelane.com/mortgages/single-person-mortgages) · [Sole Trader Mortgages, Net Profit, SA302s and Lender Methods](https://mortgagelane.com/mortgages/sole-trader-mortgages) - [Incorporation relief](https://mortgagelane.com/definitions/3#def-incorporation-relief)Regulation — A capital gains tax relief that postpones the gain when a business is transferred to a company as a going concern in exchange for shares.Incorporation relief: Full definition · used on 7 pagesUnder section 162 of the Taxation of Chargeable Gains Act 1992, when a person who is not a company transfers a business to a company as a going concern, with all its assets or all of them other than cash, wholly or partly in exchange for shares, the gain is deducted from the cost of the shares and taxed when the shares are disposed of. For transfers on or after 6 April 2026 the relief has to be claimed ([HMRC Capital Gains Manual: CG65700](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65700)).Landlords moving a portfolio into a company need to know whether their letting is a business. HMRC treats that as a question of fact, looking at the overall level of activity, and accepts a business where an individual spends 20 hours or more a week on business-type activities ([HMRC Capital Gains Manual: CG65715](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65715)). The relief covers capital gains tax only: [Stamp Duty Land Tax](https://mortgagelane.com/definitions/5#def-stamp-duty-land-tax) on the transfer is worked out separately. A tax adviser should confirm whether it applies. — Used on · [Portfolio Mortgages, Portfolio Landlord Rules and Stress Tests](https://mortgagelane.com/mortgages/property-portfolio-mortgages) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Portfolio Mortgage: detailed guide](https://mortgagelane.com/guides/mortgages-property-portfolio-mortgages-details) · [Portfolio Remortgages and Incorporation Relief](https://mortgagelane.com/guides/property-portfolio-remortgage/incorporation-relief-lender-approval) · [Portfolio mortgages for incorporation](https://mortgagelane.com/guides/property-portfolio-mortgages/portfolio-mortgages-for-incorporation) · [Property Portfolio Remortgage](https://mortgagelane.com/insights/property-portfolio-remortgage) · [Property Portfolio Remortgage: detailed guide](https://mortgagelane.com/guides/insights-property-portfolio-remortgage-details) - [Indefinite leave to remain (ILR)](https://mortgagelane.com/definitions/3#def-indefinite-leave-to-remain)Specialist lending — Settlement in the UK: an immigration status that gives the right to live, work and study in the UK without a time limit, and can lead to British citizenship.Indefinite leave to remain (ILR): Full definition · used on 6 pagesLenders that assess [foreign national](https://mortgagelane.com/definitions/2#def-foreign-national-mortgage) applicants look at immigration status, including whether the applicant holds ILR or a time-limited visa. [GOV.UK: indefinite leave to remain](https://www.gov.uk/indefinite-leave-to-remain). — Used on · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Buy to Let Mortgages for Nigerian Nationals](https://mortgagelane.com/guides/mortgages-for-nigerian-nationals/buy-to-let-mortgages-for-nigerian-nationals) · [Mortgages for Nigerian Nationals](https://mortgagelane.com/insights/mortgages-for-nigerian-nationals) · [Mortgages for Nigerian Nationals: detailed guide](https://mortgagelane.com/guides/insights-mortgages-for-nigerian-nationals-details) · [Residential mortgages and remortgages for Nigerian nationals](https://mortgagelane.com/guides/mortgages-for-nigerian-nationals/residential-mortgages-and-remortgages-for-nigerian-nationals) · [UK Mortgages for US Citizens](https://mortgagelane.com/guides/mortgages-for-foreign-nationals/uk-mortgages-for-us-citizens) - [Individual Insolvency Register](https://mortgagelane.com/definitions/3#def-individual-insolvency-register)Regulation — The public register of bankruptcies, debt relief orders and individual voluntary arrangements in England and Wales, kept by the Insolvency Service.Individual Insolvency Register: Full definition · used on 3 pagesThe register lists bankruptcies, debt relief orders and individual voluntary arrangements that are current or ended in the last three months, together with current bankruptcy restrictions orders and undertakings. A bankruptcy entry is removed three months after discharge, and a restrictions order or undertaking when it expires ([Insolvency Service: the Individual Insolvency Register](https://www.gov.uk/guidance/technical-guidance-for-official-receivers/5-the-individual-insolvency-register)). Anyone can search it free.The register is separate from the credit file: a [bankruptcy](https://mortgagelane.com/definitions#def-bankruptcy) can stay on the credit file for six years from the order after it has left the register. Scotland keeps its own Register of Insolvencies, run by the Accountant in Bankruptcy, and Northern Ireland keeps separate registers for its bankruptcies, debt relief orders and [IVAs](https://mortgagelane.com/definitions/3#def-individual-voluntary-arrangement). — Used on · [Mortgages After Bankruptcy, Discharged Bankrupts and DROs](https://mortgagelane.com/mortgages/bankruptcy-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) - [Individual voluntary arrangement (IVA)](https://mortgagelane.com/definitions/3#def-individual-voluntary-arrangement)Lending and affordability — A formal agreement with creditors to repay all or part of a person's debts through regular payments to an insolvency practitioner, who shares the money between the creditors. It counts as adverse credit.Individual voluntary arrangement (IVA): Full definition · used on 30 pagesThe [insolvency practitioner](https://mortgagelane.com/definitions/3#def-insolvency-practitioner) works out what the debtor can afford and how long the arrangement lasts. In England and Wales it starts once creditors holding three-quarters or more by value of the debts of those who respond vote for it, and the unsecured debts included in it are released when it completes. IVAs are available in England, Wales and Northern Ireland; in Scotland the comparable route is a trust deed, which can become a [protected trust deed](https://mortgagelane.com/definitions/4#def-protected-trust-deed). Secured debts such as a mortgage sit outside the arrangement and continue to be paid.Consumer IVAs can be proposed under the Insolvency Service's IVA Protocol, a standard framework that practitioners and creditors agree to follow. Under the 2025 version, which must be used for protocol IVAs proposed from 1 July 2025, the family home is excluded: the IVA runs for 60 months, or 72 months where the debtor's share of 85% of the home's value less secured borrowing is £10,000 or more ([IVA Protocol 2025](https://www.gov.uk/government/publications/individual-voluntary-arrangement-iva-protocol/iva-protocol-2025)). In England and Wales an IVA is listed on the Individual Insolvency Register until three months after it ends, and Northern Ireland keeps its own IVA register; an IVA stays on the credit file for six years from its start. Lenders treat a current or past IVA as [adverse credit](https://mortgagelane.com/definitions#def-adverse-credit), and their rules on how recent it is differ. [GOV.UK: individual voluntary arrangements](https://www.gov.uk/options-for-dealing-with-your-debts/individual-voluntary-arrangements). — Used on · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [HELOC: Home Equity Line of Credit in the UK](https://mortgagelane.com/guides/alternatives-to-bridging-loans/heloc) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) · [Low Credit Score Mortgages, What Lenders Really See](https://mortgagelane.com/mortgages/low-credit-score-mortgages) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgages After Bankruptcy, Discharged Bankrupts and DROs](https://mortgagelane.com/mortgages/bankruptcy-mortgages) · [Mortgages with Missed Payments, Late Payments and Arrears](https://mortgagelane.com/mortgages/mortgages-with-missed-payments) · [Remortgage with Bad Credit, Product Transfer or Switch](https://mortgagelane.com/mortgages/remortgage-with-bad-credit) · [85% LTV Mortgages](https://mortgagelane.com/mortgages/85-ltv-mortgages) · and 18 more - [Inheritance Tax (IHT)](https://mortgagelane.com/definitions/3#def-inheritance-tax)Regulation — A tax on the estate of someone who has died, charged at 40% on the value above the available tax-free bands: the £325,000 nil-rate band and, where a home passes to children or grandchildren, the residence nil-rate band of up to £175,000.Inheritance Tax (IHT): Full definition · used on 22 pagesInheritance Tax is paid from the estate by the personal representatives. The nil-rate band is £325,000, and the residence nil-rate band adds up to £175,000 where a home, or a share of one, goes to children or grandchildren. The residence band tapers away by £1 for every £2 that the estate is worth over £2 million. Unused bands can pass to a surviving spouse or civil partner, and both bands and the taper threshold are frozen until 5 April 2031. The rate is 40%, or 36% on some assets where 10% or more of the net estate goes to charity, and what passes to a spouse, civil partner or charity is normally exempt.The tax is due by the end of the sixth month after the death, with interest after that at [Bank Rate](https://mortgagelane.com/definitions#def-bank-rate) plus 4 percentage points. The tax on land, buildings and some business assets can be paid in 10 yearly instalments, usually with interest on the unpaid balance, and from 6 April 2027 most unused pension funds will count towards the estate. [GOV.UK: how Inheritance Tax works](https://www.gov.uk/inheritance-tax). — Used on · [Buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) · [Life Insurance When Declined, Refused or Postponed Cover](https://mortgagelane.com/insurance/life-insurance-when-declined) · [Probate Loans, Executor Loans and Inheritance Advances](https://mortgagelane.com/mortgages/probate-loans) · [Release Equity From Your Home, Remortgage and Equity Release](https://mortgagelane.com/mortgages/release-equity-from-your-home) · [SSAS and SIPP Mortgages, Pension Commercial Property Loans](https://mortgagelane.com/mortgages/ssas-sipp-mortgages) · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Bridging loans for life events](https://mortgagelane.com/guides/bridging-loan-guide/life-events) · and 10 more - [Insolvency practitioner (IP)](https://mortgagelane.com/definitions/3#def-insolvency-practitioner)Lending and affordability — A person licensed to act in insolvency cases, such as proposing and running an individual voluntary arrangement or acting as a trustee in bankruptcy.Insolvency practitioner (IP): Full definition · used on 10 pagesIn an [individual voluntary arrangement](https://mortgagelane.com/definitions/3#def-individual-voluntary-arrangement), the insolvency practitioner acting as the nominee helps the debtor draft the proposal and puts it to the creditors. Once it is approved, the practitioner acting as the supervisor receives the payments, pays the creditors after deducting fees, and issues the completion certificate at the end ([Insolvency Service: IVA Protocol 2025](https://www.gov.uk/government/publications/individual-voluntary-arrangement-iva-protocol/iva-protocol-2025)). Under the protocol's standard terms the debtor needs the supervisor's prior written approval for credit of more than £500, so a mortgage or remortgage during an IVA starts with the supervisor.Insolvency practitioners are licensed and regulated by recognised professional bodies, and only a licensed practitioner can set up an IVA. In Scotland only a licensed insolvency practitioner can arrange a trust deed, and the practitioner then acts as its trustee. [GOV.UK: find an insolvency practitioner](https://www.gov.uk/find-an-insolvency-practitioner). — Used on · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) · [Mortgages After Bankruptcy, Discharged Bankrupts and DROs](https://mortgagelane.com/mortgages/bankruptcy-mortgages) · [Remortgage with Bad Credit, Product Transfer or Switch](https://mortgagelane.com/mortgages/remortgage-with-bad-credit) · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [Cookie policy](https://mortgagelane.com/cookie-policy) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Privacy policy](https://mortgagelane.com/privacy-policy) · [UK Mortgages for Offshore Companies](https://mortgagelane.com/specialists/mortgages-for-offshore-companies) - [Insurable interest](https://mortgagelane.com/definitions/3#def-insurable-interest)Insurance — The financial stake a policyholder must have in the life or event insured. For life cover, the law limits what can be recovered to the value of that stake.Insurable interest: Full definition · used on 1 pageInsurable interest is the financial stake a policyholder must have in the life or event it insures. The Life Assurance Act 1774, which applies in England, Wales, Scotland and Northern Ireland, makes a policy on a life void where the person for whose benefit it is made has no interest in that life, or where it is made by way of gaming or wagering, and provides that no greater sum can be recovered than the value of the interest ([legislation.gov.uk: Life Assurance Act 1774](https://www.legislation.gov.uk/apgb/Geo3/14/48/section/1)).For [key person insurance](https://mortgagelane.com/definitions/3#def-key-person-insurance), the business's interest is the money it would lose if the person died, such as lost profit, the cost of a replacement or a loan the person supports. That is why insurers ask a business for accounts and details of the person's role, and limit the sum assured to what the evidence supports. — Used on · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) - [Insurance-backed guarantee (IBG)](https://mortgagelane.com/definitions/3#def-insurance-backed-guarantee)Valuation — A contractor's guarantee for specialist work, such as Japanese knotweed treatment, with an insurance policy behind it so the cover continues if the contractor stops trading.Insurance-backed guarantee (IBG): Full definition · used on 2 pagesAn insurance-backed guarantee has two parts: the contractor's own guarantee to come back and put right a covered problem during the guarantee period, and a separate insurance policy that keeps that cover valid if the contractor becomes insolvent or ceases to trade.For [Japanese knotweed](https://mortgagelane.com/definitions/3#def-japanese-knotweed), the [RICS professional standard](https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/japanese-knotweed-and-residential-property) expects a management plan to carry a guarantee of at least 5 years after the remediation contract is complete, with third-party insurance behind it, and expects most lenders to want one at management categories A and B. The [PCA code of practice](https://www.property-care.org/media/canltsdn/managementofjapaneseknotweed-nov2023-codeofpractice.pdf) says knotweed guarantees most commonly cover 5 or 10 years. The guarantee should be transferable to later owners. The minimum term and the evidence a lender accepts are set by each lender. — Used on · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [Spray Foam Insulation Mortgages](https://mortgagelane.com/insights/spray-foam-insulation-mortgages) - [Insurance underwriting](https://mortgagelane.com/definitions/3#def-insurance-underwriting)Insurance — An insurer's assessment of the risk in an application for cover, which decides whether it offers the cover and on what terms.Insurance underwriting: Full definition · used on 5 pagesInsurance underwriting looks at the person to be insured: health and medical history, lifestyle and smoking, occupation, hazardous pursuits and travel. The insurer uses the answers on the application and, where it asks, a report from the applicant's GP or specialist. It ends in one of five decisions: standard terms; an increased premium, called a premium loading; an exclusion, which removes claims from a specified cause; a postponement until a set time has passed or results are known; or a decline. Criteria and approaches vary between insurers, so the same facts can lead to different decisions ([MoneyHelper: buying insurance if you are ill or disabled](https://www.moneyhelper.org.uk/en/family-and-care/illness-and-disability/buying-insurance-if-youre-ill-or-disabled)).In England, Wales and Scotland the Equality Act 2010 allows an insurer to treat a disabled applicant differently only by reference to relevant information from a source on which it is reasonable to rely. Insurance underwriting is separate from a lender's [underwriting](https://mortgagelane.com/definitions/5#def-underwriting) of a mortgage application, which assesses the borrower, the property and the loan. — Used on · [Critical Illness Declined, Exclusions and Alternatives](https://mortgagelane.com/insurance/critical-illness-declined) · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) · [Life Insurance When Declined, Refused or Postponed Cover](https://mortgagelane.com/insurance/life-insurance-when-declined) - [Interest coverage ratio (ICR)](https://mortgagelane.com/definitions/3#def-interest-coverage-ratio)Buy-to-let — Income divided by interest costs over the same period, often expressed as a percentage in buy-to-let lending.Interest coverage ratio (ICR): Full definition · used on 84 pagesIncome divided by interest costs over the same period, often expressed as a percentage in buy-to-let lending.In buy to let, the Prudential Regulation Authority defines it as the expected monthly rent divided by the monthly mortgage interest at a stressed rate that allows for likely rate rises, and describes 125% as the current industry minimum ([Bank of England: SS13/16](https://www.bankofengland.co.uk/prudential-regulation/publication/2016/underwriting-standards-for-buy-to-let-mortgage-contracts-ss)). Lenders are also expected to allow for the tax on the property, so some ask higher-rate taxpayers for more cover than basic-rate taxpayers or companies. The required ratio, the stress rate, the rent the lender accepts and other borrowing limits vary by lender, and the result is only one of the limits on the loan. See also [rental stress test](https://mortgagelane.com/definitions/4#def-rental-stress-test) and [top slicing](https://mortgagelane.com/definitions/5#def-top-slicing). — Used on · [85% LTV Mortgages](https://mortgagelane.com/mortgages/85-ltv-mortgages) · [90% LTV Mortgages](https://mortgagelane.com/mortgages/90-ltv-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Build to Rent Development Finance](https://mortgagelane.com/short-term-finance/build-to-rent-development-finance) · [Buy to Let Mortgages](https://mortgagelane.com/mortgages/buy-to-let-mortgages) · [Buy to Let and Commercial Mortgages Declined on Affordability](https://mortgagelane.com/insights/what-to-do-if-your-mortgage-is-declined-on-affordability) · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [CIS Mortgages, Construction Industry Scheme](https://mortgagelane.com/mortgages/cis-mortgages) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Contractor Mortgages](https://mortgagelane.com/mortgages/contractor-mortgages) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · and 72 more - [Interest-only mortgage](https://mortgagelane.com/definitions/3#def-interest-only-mortgage)Residential — A mortgage where regular payments cover interest, while the capital remains due at the end of the term.Interest-only mortgage: Full definition · used on 25 pagesA mortgage where regular payments cover interest, while the capital remains due at the end of the term.The borrower needs a repayment strategy acceptable to the lender. Making the interest payments does not reduce the original borrowing.Sources: [MoneyHelper: mortgage repayment options](https://www.moneyhelper.org.uk/en/homes/buying-a-home/mortgage-repayment-options). — Used on · [Can you get an interest-only mortgage on a commercial property?](https://mortgagelane.com/guides/commercial-mortgages/can-you-get-an-interest-only-mortgage-on-a-commercial-property) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Critical Illness Declined, Exclusions and Alternatives](https://mortgagelane.com/insurance/critical-illness-declined) · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Interest Only Residential Mortgages](https://mortgagelane.com/mortgages/interest-only-residential-mortgages) · [Interest only mortgages](https://mortgagelane.com/guides/residential/interest-only-mortgages) · [Life Insurance When Declined, Refused or Postponed Cover](https://mortgagelane.com/insurance/life-insurance-when-declined) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Mortgage for a Leasehold Flat](https://mortgagelane.com/mortgages/mortgage-for-leasehold-flat) · [Offset Mortgages](https://mortgagelane.com/mortgages/offset-mortgages) · [Private Mortgages](https://mortgagelane.com/specialists/private-bank-mortgages) · and 13 more - [Investment valuation](https://mortgagelane.com/definitions/3#def-investment-valuation)Valuation — A property valuation that considers the income the property can generate and the return required by market participants.Investment valuation: Full definition · used on 94 pagesA property valuation that considers the income the property can generate and the return required by market participants.Rent, operating assumptions, lease terms and an appropriate yield influence the result. A lender may commission another valuation basis, so rental income alone does not establish the amount it will lend.Lenders and valuers often call an income-based valuation an MV1 (market value 1) valuation. The label is used loosely, so the lender's valuation instruction states the basis it wants. — Used on · [Are valuations regulated?](https://mortgagelane.com/guides/hmo-mortgage-valuations/are-valuations-regulated) · [Bricks and mortar valuations](https://mortgagelane.com/guides/hmo-mortgages/bricks-and-mortar-valuations) · [Bridging Loans for HMOs \| Buy, Convert & Refinance](https://mortgagelane.com/short-term-finance/bridging-finance-for-hmos) · [Buy To Let Mortgage For HMO](https://mortgagelane.com/insights/buy-to-let-mortgage-for-hmo) · [Buy to Let Mortgage for HMO Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-for-hmo-scotland) · [Commercial](https://mortgagelane.com/guides/property-portfolio-remortgage/commercial) · [Commercial Investment valuation (MV1)](https://mortgagelane.com/guides/hmo-mortgage-valuations/commercial-investment-valuation-mv1) · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · [DSS HMO mortgage](https://mortgagelane.com/insights/dss-hmo-mortgage) · [Ground Up Development Finance](https://mortgagelane.com/short-term-finance/ground-up-development-finance) · [HMO Mortgage No Experience](https://mortgagelane.com/insights/hmo-mortgage-no-experience) · [HMO Mortgage Valuations](https://mortgagelane.com/insights/hmo-mortgage-valuations) · and 82 more - [IR35](https://mortgagelane.com/definitions/3#def-ir35)Specialist lending — The off-payroll working rules: tax law that decides whether a contractor working through their own limited company should pay tax and National Insurance as if employed by the client.IR35: Full definition · used on 5 pagesThe rules apply where a worker provides services to a client through their own intermediary, usually a personal service company. In most cases the client decides the worker's status and issues a status determination statement; where the client is small and outside the public sector, the contractor's own company decides. If the work is inside IR35, the fee payer deducts income tax and employee National Insurance before paying the contractor's company.HMRC says the rules are unlikely to apply to someone employed by an umbrella company. IR35 settles who deducts tax, not whether a lender will lend: lenders publish their own rules on how they read a [contractor's income](https://mortgagelane.com/definitions#def-contractor-mortgage). [GOV.UK: understanding off-payroll working (IR35)](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35). — Used on · [Contractor Mortgages](https://mortgagelane.com/mortgages/contractor-mortgages) · [IT Contractor Mortgages](https://mortgagelane.com/mortgages/it-contractor-mortgages) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) · [Contractor mortgages](https://mortgagelane.com/guides/residential/contractor-mortgages) - J5 terms - [Japanese knotweed](https://mortgagelane.com/definitions/3#def-japanese-knotweed)Valuation — An invasive plant that spreads through underground stems called rhizomes, and a new plant can grow from a piece of rhizome as small as 1cm. Valuers and surveyors who find it at or next to a home place it in an RICS management category from A to D.Japanese knotweed: Full definition · used on 10 pagesJapanese knotweed (Reynoutria japonica, formerly Fallopia japonica) is a perennial introduced to the UK in the mid-19th century. It grows tall, hollow, bamboo-like canes that die back in winter, and its rhizomes can lie dormant in the soil for long periods and regrow if disturbed. In England and Wales, planting it or causing it to grow in the wild is an offence under the Wildlife and Countryside Act 1981, and contaminated soil may be controlled waste.Since 23 March 2022, RICS valuers and surveyors place knotweed at a residential property in a management category under the [RICS professional standard](https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/japanese-knotweed-and-residential-property): A where it is damaging a structure, B where it affects amenity space such as a garden or driveway, C where it is present without either, and D where it is on adjoining land within 3 metres of the boundary. At A and B most lenders are expected to require a management plan with an [insurance-backed guarantee](https://mortgagelane.com/definitions/3#def-insurance-backed-guarantee), often with a [retention](https://mortgagelane.com/definitions/4#def-mortgage-retention). The categories replaced the 7 metre distance test used since 2012. — Used on · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Bridging Loans for Auction](https://mortgagelane.com/short-term-finance/auction-property-loans) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Mortgage Calculators](https://mortgagelane.com/calculators) · [Mortgage declined after survey](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-after-survey) · [Mortgages in Northern Ireland, Calculator and Co-Ownership](https://mortgagelane.com/mortgages/mortgages-northern-ireland) · [Non-Standard Construction Mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages) - [Jersey mortgage](https://mortgagelane.com/definitions/3#def-jersey-mortgage)Specialist lending — A loan secured against property in Jersey under the island’s property law and the lender’s applicable requirements.Jersey mortgage: Full definition · used on 7 pagesA loan secured against property in Jersey under the island’s property law and the lender’s applicable requirements.Property ownership, registration and borrower eligibility differ from mainland UK arrangements. Check the legal security and regulatory status of the specific lender and agreement rather than assuming UK mortgage rules apply. — Used on · [Buy to let mortgage Jersey, Channel Islands](https://mortgagelane.com/guides/mortgages-jersey-mortgages/buy-to-let-mortgage-jersey-channel-islands) · [HMO mortgages Jersey](https://mortgagelane.com/guides/mortgages-jersey-mortgages/hmo-mortgages-jersey) · [Jersey Mortgages](https://mortgagelane.com/insights/mortgages-jersey-mortgages) · [Jersey Mortgages: detailed guide](https://mortgagelane.com/guides/insights-mortgages-jersey-mortgages-details) · [Offshore Bridging Loan \| Jersey](https://mortgagelane.com/insights/offshore-bridging-loan-jersey) · [Residential mortgages in Jersey](https://mortgagelane.com/guides/mortgages-jersey-mortgages/residential-mortgages-in-jersey) · [Property and borrowing topics](https://mortgagelane.com/guides/property-and-borrowing-topics) - [Joint borrower sole proprietor (JBSP)](https://mortgagelane.com/definitions/3#def-joint-borrower-sole-proprietor)Residential — A mortgage where a supporting borrower's income is used for affordability but they take no share of the property. All borrowers are jointly liable for the debt; only the buyer is on the title.Joint borrower sole proprietor (JBSP): Full definition · used on 28 pagesA joint borrower sole proprietor mortgage separates liability from ownership. A parent or other supporter is named on the mortgage, so their income counts towards affordability, but not on the title deeds.Because the supporter takes no beneficial interest, the purchase does not attract the additional dwelling surcharge on their account, and the buyer's first-time buyer relief is preserved where it would otherwise apply.The supporter is [jointly and severally liable](https://mortgagelane.com/definitions/3#def-joint-mortgage) for the whole debt, and the mortgage appears on their credit file. Lenders differ on the maximum number of borrowers and on whose age sets the maximum term. — Used on · [95% Mortgages](https://mortgagelane.com/mortgages/95-percent-mortgages) · [Family Help Mortgages](https://mortgagelane.com/mortgages/family-help-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [JBSP Mortgages, Joint Borrower Sole Proprietor](https://mortgagelane.com/mortgages/jbsp-mortgages) · [Joint borrower sole proprieter](https://mortgagelane.com/guides/right-to-buy-mortgages/joint-borrower-sole-proprieter) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Mortgages with Defaults, Lender Tiers and Secured Defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults) · [Mortgages with Missed Payments, Late Payments and Arrears](https://mortgagelane.com/mortgages/mortgages-with-missed-payments) · [One Year Self-Employed Mortgages, 1 Year's Accounts](https://mortgagelane.com/mortgages/one-year-self-employed-mortgages) · and 16 more - [Joint mortgage](https://mortgagelane.com/definitions/3#def-joint-mortgage)Residential — A mortgage taken out by two or more borrowers, each of whom is responsible for the whole debt.Joint mortgage: Full definition · used on 15 pagesJoint borrowers are jointly and severally liable: each is responsible for the whole mortgage, whoever makes the payments, and the lender can pursue any of them for arrears. If one borrower dies, the others still have to repay the whole debt ([MoneyHelper: joint loans](https://www.moneyhelper.org.uk/en/everyday-money/credit/taking-out-a-joint-debt-or-loan-what-you-need-to-know)).The lender assesses every borrower's income, commitments and credit file, and the joint account links the borrowers' credit files as a financial association. Who owns the property, and in what shares, is a separate question, settled by how the title is held (as joint tenants or tenants in common in England and Wales), by any declaration of trust and, without one, by what a court finds the owners intended. A borrower can be removed only with the lender's agreement, usually through a [transfer of equity](https://mortgagelane.com/definitions/5#def-transfer-of-equity) or a [remortgage](https://mortgagelane.com/definitions/4#def-remortgage), with the remaining borrowers' income assessed alone. — Used on · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [Divorce Settlement Bridging Loans \| Buy Out or Settle Fast](https://mortgagelane.com/short-term-finance/divorce-settlement-bridging-loans) · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) · [Life Insurance When Declined, Refused or Postponed Cover](https://mortgagelane.com/insurance/life-insurance-when-declined) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Low Credit Score Mortgages, What Lenders Really See](https://mortgagelane.com/mortgages/low-credit-score-mortgages) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Mortgages with Defaults, Lender Tiers and Secured Defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults) · [Mortgages with Missed Payments, Late Payments and Arrears](https://mortgagelane.com/mortgages/mortgages-with-missed-payments) · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · and 3 more - [Joint venture development finance](https://mortgagelane.com/definitions/3#def-joint-venture-development-finance)Development finance — Development funding where the funder provides most or all of the equity as well as the debt, and takes a share of the profit instead of charging the developer for that equity.Joint venture development finance: Full definition · used on 6 pagesIn a joint venture the funder supplies the equity a developer would normally have to find, and is paid out of the scheme's profit rather than through interest on that portion.The structure is usually a special purpose vehicle owned by both parties, with the profit split, any priority return, and the treatment of cost overruns all set out before drawdown.It suits a developer with a consented scheme and no equity, or with more schemes than equity. The cost is a share of the profit, so it is compared against conventional funding and mezzanine on what the developer keeps, not on the headline rate. — Used on · [Joint Venture Development Finance](https://mortgagelane.com/short-term-finance/joint-venture-development-finance) · [Build to Rent Development Finance](https://mortgagelane.com/short-term-finance/build-to-rent-development-finance) · [Hotel Development Finance](https://mortgagelane.com/short-term-finance/hotel-development-finance) · [Mortgage Calculators](https://mortgagelane.com/calculators) · [PBSA Finance, Purpose-Built Student Accommodation](https://mortgagelane.com/short-term-finance/pbsa-finance) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) - K1 term - [Key person insurance](https://mortgagelane.com/definitions/3#def-key-person-insurance)Insurance — A life policy, often with critical illness cover, that a business takes out and owns on a person whose death or serious illness would cost it money. The business pays the premiums and receives any payout.Key person insurance: Full definition · used on 6 pagesKey person insurance, also called keyman insurance or key person cover, is usually term [life cover](https://mortgagelane.com/definitions/3#def-life-insurance), often with [critical illness cover](https://mortgagelane.com/definitions#def-critical-illness-cover), on a founder, director, salesperson or specialist whose loss would cause the business financial harm. The business is the policyholder and the beneficiary; the insured person's family receive nothing from it. The business must have an [insurable interest](https://mortgagelane.com/definitions/3#def-insurable-interest) in the person's life, and insurers ask for evidence, such as accounts, that justifies the sum assured.The sum is usually justified by a multiple of the person's remuneration, their share of gross profit over the time needed to replace them, the cost of recruiting a replacement, or borrowing that depends on them. HMRC treats the premiums as a trading expense where the sole purpose is to meet a loss of trading income and a life policy is term insurance with no other benefits, and a payout on such a policy is then a trading receipt ([GOV.UK: HMRC Business Income Manual, BIM45525](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45525)). It differs from [shareholder protection](https://mortgagelane.com/definitions/5#def-shareholder-protection), which pays the remaining owners, and a [relevant life policy](https://mortgagelane.com/definitions/4#def-relevant-life-policy), which pays an employee's family. — Used on · [Critical Illness Declined, Exclusions and Alternatives](https://mortgagelane.com/insurance/critical-illness-declined) · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Insurance](https://mortgagelane.com/insurance) · [Life Insurance When Declined, Refused or Postponed Cover](https://mortgagelane.com/insurance/life-insurance-when-declined) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) - L18 terms - [Land and Buildings Transaction Tax (LBTT)](https://mortgagelane.com/definitions/3#def-land-and-buildings-transaction-tax)Fees and charges — The tax on residential and commercial land and property transactions in Scotland, which replaced Stamp Duty Land Tax there in 2015 and is administered by Revenue Scotland.Land and Buildings Transaction Tax (LBTT): Full definition · used on 26 pagesRevenue Scotland manages and collects the tax, and the Scottish Government sets its rates. Buying an additional home, or residential property through a company, usually also brings the [Additional Dwelling Supplement](https://mortgagelane.com/definitions#def-additional-dwelling-supplement). [Revenue Scotland: LBTT](https://revenue.scot/taxes/land-buildings-transaction-tax). — Used on · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Buy to Let Mortgage for HMO Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-for-hmo-scotland) · [Buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [Property Development Finance in Scotland](https://mortgagelane.com/short-term-finance/property-development-finance-scotland) · and 14 more - [Land bridging loan](https://mortgagelane.com/definitions/3#def-land-bridging-loan)Bridging finance — A short-term loan secured against land, used to fund a purchase or release capital before an agreed repayment event.Land bridging loan: Full definition · used on 56 pagesA short-term loan secured against land, used to fund a purchase or release capital before an agreed repayment event.Planning status, access, permitted use and saleability affect the security assessment. Repayment may depend on a sale or subsequent finance, which must be assessed separately. — Used on · [Agricultural Bridging Loans](https://mortgagelane.com/insights/agricultural-bridging-loan) · [Agricultural Bridging Loans: detailed guide](https://mortgagelane.com/guides/insights-agricultural-bridging-loan-details) · [Agricultural bridging loan](https://mortgagelane.com/guides/bridging-loan-guide/agricultural-bridging-loan) · [Agricultural bridging loan](https://mortgagelane.com/guides/bridging-loans/agricultural-bridging-loan) · [Are Auction Loans regulated?](https://mortgagelane.com/guides/land-bridging-loans/are-auction-loans-regulated) · [Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Bridging loan for land purchase](https://mortgagelane.com/guides/land-bridging-loans/bridging-loan-for-land-purchase) · [Business bridging finance](https://mortgagelane.com/guides/bridging-loan-guide/business-bridging-finance) · [Business bridging loans](https://mortgagelane.com/guides/bridging-loans/business-bridging-loans) · [Can First time buyers get a land bridging loan?](https://mortgagelane.com/guides/land-bridging-loans/can-first-time-buyers-get-a-land-bridging-loan) · [Can I borrow money against my house to buy land?](https://mortgagelane.com/guides/land-bridging-loans/can-i-borrow-money-against-my-house-to-buy-land) · and 44 more - [Land Transaction Tax (LTT)](https://mortgagelane.com/definitions/3#def-land-transaction-tax)Fees and charges — The tax on buying land and property over a certain price in Wales, which replaced Stamp Duty Land Tax there in 2018 and is collected by the Welsh Revenue Authority.Land Transaction Tax (LTT): Full definition · used on 26 pagesHigher residential rates may apply where the buyer already owns one or more residential properties, unless they are replacing their main residence. Wales has no separate first-time buyer relief. [Welsh Government: Land Transaction Tax](https://www.gov.wales/land-transaction-tax-overview). — Used on · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [IT Contractor Mortgages](https://mortgagelane.com/mortgages/it-contractor-mortgages) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Regulated Buy to Let Mortgages, Family and Consumer Buy to Let](https://mortgagelane.com/mortgages/regulated-buy-to-let-mortgages) · [Release Equity From Your Home, Remortgage and Equity Release](https://mortgagelane.com/mortgages/release-equity-from-your-home) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) · and 14 more - [Large panel system (LPS)](https://mortgagelane.com/definitions/3#def-large-panel-system)Valuation — A method of building blocks of flats and some houses from large precast concrete panels, used mainly in the 1960s and 1970s. Lenders treat LPS as non-standard construction, and many decline it.Large panel system (LPS): Full definition · used on 3 pagesGovernment guidance to councils describes large panel system buildings as built from large precast concrete panels, many between 1963 and 1978. After the 1968 gas explosion and partial collapse at Ronan Point, councils were told to appraise and, where necessary, strengthen such blocks, and later guidance says every LPS building's structural history and condition should be known and monitored.Many lenders decline LPS; some consider an LPS house with a satisfactory structural engineer's report but not an LPS flat. See [mortgages on ex-council flats](https://mortgagelane.com/mortgages/mortgage-on-an-ex-council-flat) and [non-standard construction mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages). — Used on · [Mortgage on an Ex-Council Flat](https://mortgagelane.com/mortgages/mortgage-on-an-ex-council-flat) · [Non-Standard Construction Mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages) · [Ex Local Authority Mortgage](https://mortgagelane.com/insights/ex-local-authority-mortgage) - [Leasehold](https://mortgagelane.com/definitions/3#def-leasehold)Planning and tenure — Ownership of a property for a fixed number of years under a lease, with the freehold held by someone else. The years left on the lease, not the property itself, often decide whether it can be mortgaged.Leasehold: Full definition · used on 53 pagesA leaseholder owns the right to occupy for the term of the lease. Lenders set a minimum unexpired term, often expressed as a number of years that must remain at the end of the mortgage term, although some lenders set a minimum lease at completion instead, and the figures vary by lender.A lease below that threshold is not unmortgageable, but it narrows the lender list sharply and can push the case towards a lease extension before purchase, or bridging finance to buy and extend.Ground rent terms matter separately from the term length: an escalating ground rent can make a flat unacceptable to some lenders even on a long lease. — Used on · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Mortgage for a Leasehold Flat](https://mortgagelane.com/mortgages/mortgage-for-leasehold-flat) · [Mortgages in Northern Ireland, Calculator and Co-Ownership](https://mortgagelane.com/mortgages/mortgages-northern-ireland) · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · [Section 106 Mortgages, Discounted and Restricted Homes](https://mortgagelane.com/mortgages/section-106-mortgages) · [Shared ownership mortgages](https://mortgagelane.com/guides/residential/shared-ownership-mortgages) · [Sheltered housing](https://mortgagelane.com/guides/social-housing-mortgages/sheltered-housing) · and 41 more - [Let-to-buy mortgage](https://mortgagelane.com/definitions/3#def-let-to-buy-mortgage)Buy-to-let — Mortgage finance for letting an existing home while buying another property to live in.Let-to-buy mortgage: Full definition · used on 5 pagesMortgage finance for letting an existing home while buying another property to live in.The existing home is financed on terms permitting the letting, while a separate residential mortgage may fund the new home. The two applications and completion arrangements need to be coordinated. — Used on · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Let to Buy Mortgages](https://mortgagelane.com/mortgages/let-to-buy-mortgages) · [Remortgage to Buy a Second Property, Buy to Let or Second Home](https://mortgagelane.com/mortgages/remortgage-to-buy-second-property) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [Regulated Buy to Let Mortgages, Family and Consumer Buy to Let](https://mortgagelane.com/mortgages/regulated-buy-to-let-mortgages) - [Life insurance](https://mortgagelane.com/definitions/3#def-life-insurance)Insurance — Insurance that pays out if the person insured dies while the policy is in force, used to repay a mortgage or to support the people who depend on them.Life insurance: Full definition · used on 12 pagesLife insurance pays out on the death of the person insured, as a lump sum or, on some policies, as regular payments. Term policies run for a fixed period: level cover stays the same throughout, decreasing cover falls each year and is designed for a [repayment mortgage](https://mortgagelane.com/definitions/4#def-repayment-mortgage), and increasing cover rises over the term. Whole of life policies pay out whenever death occurs, as long as the premiums are kept up. A joint policy pays once, on the first death, while two single policies pay on each death, and a policy can be written in trust so the payout goes to the people chosen ([MoneyHelper: what is life insurance](https://www.moneyhelper.org.uk/en/everyday-money/insurance/what-is-life-insurance)).Term life cover with no cash-in value is a pure protection contract in the FCA's terms, and advising on or arranging it is insurance distribution under the FCA's Insurance: Conduct of Business sourcebook (ICOBS), separate from the mortgage rules. Before offering cover an insurer carries out [insurance underwriting](https://mortgagelane.com/definitions/3#def-insurance-underwriting), and the applicant's answers are subject to the duty described under [consumer insurance disclosure](https://mortgagelane.com/definitions#def-consumer-insurance-disclosure). Life insurance is not a legal requirement for a mortgage. — Used on · [Critical Illness Declined, Exclusions and Alternatives](https://mortgagelane.com/insurance/critical-illness-declined) · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) · [Life Insurance When Declined, Refused or Postponed Cover](https://mortgagelane.com/insurance/life-insurance-when-declined) · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Insurance](https://mortgagelane.com/insurance) · [JBSP Mortgages, Joint Borrower Sole Proprietor](https://mortgagelane.com/mortgages/jbsp-mortgages) · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · [Shared ownership mortgages](https://mortgagelane.com/guides/residential/shared-ownership-mortgages) · [Single Person Mortgages, Buying Alone and Applying Alone](https://mortgagelane.com/mortgages/single-person-mortgages) - [Lifetime ISA (LISA)](https://mortgagelane.com/definitions/3#def-lifetime-isa)Residential — A tax-free savings account with a government bonus that can be used towards buying a first home or kept for later life, subject to an age limit for opening, a property price limit and a charge on other withdrawals.Lifetime ISA (LISA): Full definition · used on 12 pagesSavings and the government bonus can go towards a first home bought with a mortgage, through a conveyancer, at least 12 months after the first payment in and within the scheme's price limit. Other withdrawals before later life carry a withdrawal charge.The age limit, yearly allowance, bonus and price limit are set by the government; [GOV.UK: Lifetime ISA](https://www.gov.uk/lifetime-isa) has the rules in force. — Used on · [90% LTV Mortgages](https://mortgagelane.com/mortgages/90-ltv-mortgages) · [95% Mortgages](https://mortgagelane.com/mortgages/95-percent-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [IT Contractor Mortgages](https://mortgagelane.com/mortgages/it-contractor-mortgages) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Mortgages in Northern Ireland, Calculator and Co-Ownership](https://mortgagelane.com/mortgages/mortgages-northern-ireland) · [Single Person Mortgages, Buying Alone and Applying Alone](https://mortgagelane.com/mortgages/single-person-mortgages) · [First time buyer mortgage](https://mortgagelane.com/guides/residential/first-time-buyer-mortgage) · [Help to Buy Mortgages](https://mortgagelane.com/mortgages/help-to-buy-mortgages) · [How much deposit do I need to buy a house as a first time buyer?](https://mortgagelane.com/guides/mortgage-for-50k-salary/how-much-deposit-do-i-need-to-buy-a-house-as-a-first-time-buyer) · [The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) - [Lifetime mortgage](https://mortgagelane.com/definitions/3#def-lifetime-mortgage)Residential — A loan secured on your home, for homeowners above a minimum age, that is usually not repaid in full until the last borrower dies or moves into long-term care, with interest either paid or added to the loan.Lifetime mortgage: Full definition · used on 4 pagesThe FCA defines a lifetime mortgage as a regulated mortgage, open only to older customers above a specified age, on which the lender does not seek full repayment until a specified life event ([FCA Handbook glossary: lifetime mortgage](https://handbook.fca.org.uk/glossary/G1294)). Interest can be rolled up and added to the loan, partly paid or paid in full, and a drawdown version pays the money in instalments. Where interest rolls up it compounds, so the balance grows faster each year, and the FCA's affordability rule does not apply to that kind of loan.The Equity Release Council says the youngest applicant needs to be at least 55. Plans meeting its standards fix the rate, or cap it, for life, give the right to stay in the home and to move to a suitable property, allow repayments without a charge within the provider's criteria, and carry a [no negative equity guarantee](https://mortgagelane.com/definitions/3#def-no-negative-equity-guarantee). It is one form of [equity release](https://mortgagelane.com/definitions/2#def-equity-release). — Used on · [Release Equity From Your Home, Remortgage and Equity Release](https://mortgagelane.com/mortgages/release-equity-from-your-home) · [85% LTV Mortgages](https://mortgagelane.com/mortgages/85-ltv-mortgages) · [Interest Only Residential Mortgages](https://mortgagelane.com/mortgages/interest-only-residential-mortgages) · [Re-Bridging Loans, What Is Re-Bridging and Bridging Extensions](https://mortgagelane.com/short-term-finance/re-bridging-loans) - [LIFT (Low-cost Initiative for First Time Buyers)](https://mortgagelane.com/definitions/3#def-lift-scheme)Residential — The Scottish Government's shared equity schemes for first-time buyers and priority groups who cannot afford the whole price of a home. The government funds part of the price and holds that share of the home, and the buyer pays for the rest with a mortgage and deposit.LIFT (Low-cost Initiative for First Time Buyers): Full definition · used on 12 pagesLIFT has two parts. Under Open Market Shared Equity the buyer purchases a home on the open market, priced within a threshold set for the area and the size of home, and usually funds 60% to 90% of the price. Under New Supply Shared Equity the buyer purchases a new home from a housing association or council and usually funds 60% to 80%. The Scottish Government holds the rest.The buyer has the whole title and grants the government a [standard security](https://mortgagelane.com/definitions/5#def-standard-security) for its share. On the open market scheme the buyer can increase their share later, and on a sale the government receives its percentage of the selling price. The mortgage must be a [repayment mortgage](https://mortgagelane.com/definitions/4#def-repayment-mortgage). Purchases through LIFT are outside the [Mortgage Guarantee Scheme](https://mortgagelane.com/definitions/3#def-mortgage-guarantee-scheme), whose rules leave out shared equity schemes. Eligibility, price thresholds and funding are set for each financial year ([mygov.scot: Open Market Shared Equity](https://www.mygov.scot/open-market-shared-equity-scheme)). — Used on · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [EWS1 for converted MUFB remortgage](https://mortgagelane.com/guides/mufb-mortgage/ews1-for-converted-mufb-remortgage) · [Ex Local Authority Mortgage](https://mortgagelane.com/insights/ex-local-authority-mortgage) · [Family Help Mortgages](https://mortgagelane.com/mortgages/family-help-mortgages) · [Help to Buy Mortgages](https://mortgagelane.com/mortgages/help-to-buy-mortgages) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgage declined due to service charge](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-due-to-service-charge) · [Mortgage on an Ex-Council Flat](https://mortgagelane.com/mortgages/mortgage-on-an-ex-council-flat) · [Property Development Finance in Scotland](https://mortgagelane.com/short-term-finance/property-development-finance-scotland) · [Remortgage for Home Improvements, Extensions and Lofts](https://mortgagelane.com/mortgages/remortgage-for-home-improvements) · [The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) - [Limited liability partnership (LLP)](https://mortgagelane.com/definitions/3#def-limited-liability-partnership)Buy-to-let — A business with two or more members that is a legal entity separate from them. Members pay tax on their profit shares like partners, but are not personally liable for business debts it cannot pay.Limited liability partnership (LLP): Full definition · used on 29 pagesAn LLP is a body corporate formed under the Limited Liability Partnerships Act 2000. Its members are not personally liable for debts the business cannot pay, its designated members send annual accounts to Companies House, and each member pays tax on their share of the profits through Self Assessment, as a partner in an ordinary partnership does ([GOV.UK: limited liability partnerships](https://www.gov.uk/guidance/set-up-and-run-a-limited-liability-partnership-llp)). A member who meets the salaried member conditions is taxed as an employee instead (see [salaried member](https://mortgagelane.com/definitions/5#def-salaried-member)).For a personal mortgage, lenders assess a member on their profit share from the tax calculation and the LLP's accounts. Some landlords hold property through an LLP; lenders that accept LLP borrowers assess the members behind it and may ask for [personal guarantees](https://mortgagelane.com/definitions/4#def-personal-guarantee). — Used on · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) · [Mortgages With Decreasing Profits, Self-Employed Income Falls](https://mortgagelane.com/mortgages/mortgages-with-decreasing-profits) · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-mortgages) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) · [Sole Trader Mortgages, Net Profit, SA302s and Lender Methods](https://mortgagelane.com/mortgages/sole-trader-mortgages) · [Business Bridging Loans](https://mortgagelane.com/short-term-finance/business-bridging-loans) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Dental practice mortgage](https://mortgagelane.com/guides/commercial-mortgage-guide/dental-practice-mortgage) · [Development Exit Finance](https://mortgagelane.com/short-term-finance/development-exit-finance) · and 17 more - [Listed building mortgage](https://mortgagelane.com/definitions/3#def-listed-building-mortgage)Specialist lending — A mortgage secured against a building formally listed for its architectural or historic interest.Listed building mortgage: Full definition · used on 19 pagesA mortgage secured against a building formally listed for its architectural or historic interest.The lender assesses the property’s condition and any proposed work. Listing can affect which alterations are permitted, and listed building consent is a separate consideration from mortgage approval.Sources: [GOV.UK: historic environment](https://www.gov.uk/guidance/conserving-and-enhancing-the-historic-environment). — Used on · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Commercial listed building mortgage](https://mortgagelane.com/guides/mortgage-for-listed-buildings/commercial-listed-building-mortgage) · [Converted Listed Churches and Chapels](https://mortgagelane.com/guides/mortgage-for-listed-buildings/converted-listed-churches-and-chapels) · [Expat Mortgages](https://mortgagelane.com/specialists/expat-mortgages) · [Grade 1 Listed Buildings](https://mortgagelane.com/guides/mortgage-for-listed-buildings/grade-1-listed-buildings) · [Grade 2 Listed Buildings](https://mortgagelane.com/guides/mortgage-for-listed-buildings/grade-2-listed-buildings) · [Heritage property mortgages for expats](https://mortgagelane.com/guides/expat-mortgages/heritage-property-mortgages-for-expats) · [Listed building buy to let mortgage](https://mortgagelane.com/guides/mortgage-for-listed-buildings/listed-building-buy-to-let-mortgage) · [Listed building mortgage](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/listed-building-mortgage) · [Listed building mortgage for residence](https://mortgagelane.com/guides/mortgage-for-listed-buildings/listed-building-mortgage-for-residence) · [Listed pub mortgages](https://mortgagelane.com/guides/pub-mortgage/listed-pub-mortgages) · [Mortgage for Listed Buildings](https://mortgagelane.com/insights/mortgage-for-listed-buildings) · and 7 more - [Loan-to-cost (LTC)](https://mortgagelane.com/definitions/3#def-loan-to-cost)Development finance — The loan amount expressed as a percentage of the project costs included in the lender’s calculation.Loan-to-cost (LTC): Full definition · used on 30 pagesThe loan amount expressed as a percentage of the project costs included in the lender’s calculation.The included costs and loan amount must be stated. Loan-to-cost is different from loan-to-value or loan-to-GDV, and a development facility may be limited by more than one of these measures. — Used on · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · [Development Finance For First Time Developers](https://mortgagelane.com/insights/development-finance-first-time-developers) · [Ground Up Development Finance](https://mortgagelane.com/short-term-finance/ground-up-development-finance) · [Joint Venture Development Finance](https://mortgagelane.com/short-term-finance/joint-venture-development-finance) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · [Property Development Finance in Scotland](https://mortgagelane.com/short-term-finance/property-development-finance-scotland) · [Residential Development Finance](https://mortgagelane.com/short-term-finance/residential-development-finance) · [Self Build Mortgages](https://mortgagelane.com/short-term-finance/self-build-mortgages) · [Senior Funding Lenders](https://mortgagelane.com/guides/development-finance-first-time-developers/senior-funding-lenders) · [Additional units or planning permission](https://mortgagelane.com/guides/mezzanine-finance/additional-units-or-planning-permission) · [Build to Rent Development Finance](https://mortgagelane.com/short-term-finance/build-to-rent-development-finance) · [Can I borrow money against my house to buy land?](https://mortgagelane.com/guides/land-bridging-loans/can-i-borrow-money-against-my-house-to-buy-land) · and 18 more - [Loan to gross development value (LTGDV)](https://mortgagelane.com/definitions/3#def-loan-to-gross-development-value)Development finance — The size of a development loan expressed as a percentage of the scheme's gross development value, the valuer's figure for what it will be worth once finished.Loan to gross development value (LTGDV): Full definition · used on 30 pagesLoan to gross development value divides the total facility by the [gross development value (GDV)](https://mortgagelane.com/definitions/2#def-gross-development-value) reported by the lender's valuer. It is one of two caps on a development loan. The other is [loan to cost (LTC)](https://mortgagelane.com/definitions/3#def-loan-to-cost), and the facility is set at whichever of the two gives the smaller loan.The percentage a lender will lend to varies by lender, by the type of scheme and by the developer's experience, so a quote should state both the LTGDV and the LTC it is based on. [Property development finance](https://mortgagelane.com/short-term-finance/property-development-finance) shows how the two caps work together. — Used on · [Build to Rent Development Finance](https://mortgagelane.com/short-term-finance/build-to-rent-development-finance) · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · [Development Finance For First Time Developers](https://mortgagelane.com/insights/development-finance-first-time-developers) · [Ground Up Development Finance](https://mortgagelane.com/short-term-finance/ground-up-development-finance) · [Hotel Development Finance](https://mortgagelane.com/short-term-finance/hotel-development-finance) · [Joint Venture Development Finance](https://mortgagelane.com/short-term-finance/joint-venture-development-finance) · [PBSA Finance, Purpose-Built Student Accommodation](https://mortgagelane.com/short-term-finance/pbsa-finance) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · [Property Development Finance in Scotland](https://mortgagelane.com/short-term-finance/property-development-finance-scotland) · [Residential Development Finance](https://mortgagelane.com/short-term-finance/residential-development-finance) · [Self Build Mortgages](https://mortgagelane.com/short-term-finance/self-build-mortgages) · [Additional units or planning permission](https://mortgagelane.com/guides/mezzanine-finance/additional-units-or-planning-permission) · and 18 more - [Loan to income (LTI)](https://mortgagelane.com/definitions/3#def-loan-to-income)Lending and affordability — The size of a mortgage compared with the borrower's gross annual income, usually expressed as a multiple of that income.Loan to income (LTI): Full definition · used on 68 pagesLenders set a maximum multiple as one of the limits on residential borrowing, alongside their affordability assessment. The Bank of England's Financial Policy Committee limits the share of new residential mortgages lenders can make at high loan to income ratios, to guard against excessive household debt. [Bank of England: high loan to income lending](https://www.bankofengland.co.uk/prudential-regulation/publication/2026/april/high-loan-to-income-lending-consultation-paper). — Used on · [95% Mortgages](https://mortgagelane.com/mortgages/95-percent-mortgages) · [Agricultural Bridging Loans](https://mortgagelane.com/insights/agricultural-bridging-loan) · [CIS Mortgages, Construction Industry Scheme](https://mortgagelane.com/mortgages/cis-mortgages) · [Divorce Settlement Bridging Loans \| Buy Out or Settle Fast](https://mortgagelane.com/short-term-finance/divorce-settlement-bridging-loans) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [Fixed Term Contract Mortgage](https://mortgagelane.com/mortgages/fixed-term-contract-mortgages) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Low Credit Score Mortgages, What Lenders Really See](https://mortgagelane.com/mortgages/low-credit-score-mortgages) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · and 56 more - [Loan-to-value (LTV)](https://mortgagelane.com/definitions/3#def-loan-to-value)Lending and affordability — Borrowing expressed as a percentage of the property value the lender is using. A quote should say which loan amount and which valuation basis its LTV calculation uses.Loan-to-value (LTV): Full definition · used on 431 pagesLoan-to-value, or LTV, expresses borrowing as a percentage of the property value used by the lender. A bridging quote should explain which loan amount and valuation basis are used in its LTV calculation. For a simple first-charge example with no other secured debt: **£150,000 gross borrowing ÷ £200,000 lender valuation × 100 = 75% gross LTV.** This is an arithmetic illustration, not an available product, lender maximum or borrowing recommendation. It does not show how much cash would remain after deductions. For a second charge or a facility secured on several properties, ask how existing debt, the additional loan and the relevant property values are treated. A calculation based only on the new loan can give an incomplete picture of the security position. — Used on · [85% LTV Mortgages](https://mortgagelane.com/mortgages/85-ltv-mortgages) · [90% LTV Mortgages](https://mortgagelane.com/mortgages/90-ltv-mortgages) · [95% Mortgages](https://mortgagelane.com/mortgages/95-percent-mortgages) · [Agricultural Bridging Loans](https://mortgagelane.com/insights/agricultural-bridging-loan) · [B&B Mortgage](https://mortgagelane.com/insights/bed-and-breakfast-mortgage) · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Bridging Loans in Scotland](https://mortgagelane.com/guides/bridging-loans/scotland) · [Bridging Loans in Wales](https://mortgagelane.com/guides/bridging-loans/wales) · [Bridging loan for equestrian land](https://mortgagelane.com/guides/bridging-loans/equestrian-land) · and 419 more - [Lodger](https://mortgagelane.com/definitions/3#def-lodger)Residential — Someone who rents accommodation in a home shared with the resident landlord.Lodger: Full definition · used on 5 pagesSomeone who rents accommodation in a home shared with the resident landlord.A homeowner should check whether their mortgage and insurance permit a lodger. Renting part of an occupied home differs from letting the entire property, and the legal arrangement depends on how the accommodation is shared. — Used on · [Lodger Mortgage](https://mortgagelane.com/insights/lodger-mortgage) · [Mortgage on an Ex-Council Flat](https://mortgagelane.com/mortgages/mortgage-on-an-ex-council-flat) · [Multiple Occupancy Mortgage: detailed guide](https://mortgagelane.com/guides/insights-multiple-occupancy-mortgages-details) · [Single Person Mortgages, Buying Alone and Applying Alone](https://mortgagelane.com/mortgages/single-person-mortgages) · [The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) - [Low income mortgage](https://mortgagelane.com/definitions/3#def-low-income-mortgage)Residential — A standard residential mortgage taken out on a modest income. How much can be borrowed depends on the lender's affordability rules, the income it counts and the schemes it lends on.Low income mortgage: Full definition · used on 14 pagesThere is no separate low income product and no legal minimum income for a mortgage in the UK. The loan is an ordinary residential mortgage, and the lender assesses [affordability](https://mortgagelane.com/definitions#def-affordability) under the Financial Conduct Authority's responsible lending rules: income after tax, committed spending and living costs, with the payment tested against likely future interest rates ([FCA Handbook, MCOB 11.6](https://www.handbook.fca.org.uk/handbook/MCOB/11/6.html)).Lenders differ on whether they set a minimum income, which benefits and second incomes they count, the [income multiple](https://mortgagelane.com/definitions/3#def-loan-to-income) they apply and the longest term they allow. On a modest income those rules decide the size of the loan. Schemes such as [shared ownership](https://mortgagelane.com/definitions/5#def-shared-ownership), [First Homes](https://mortgagelane.com/definitions/2#def-first-homes) and [Right to Buy](https://mortgagelane.com/definitions/4#def-right-to-buy-mortgage), a family member's income under a [joint borrower sole proprietor](https://mortgagelane.com/definitions/3#def-joint-borrower-sole-proprietor) mortgage, or a larger deposit then decide what that loan can buy. — Used on · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [Family Help Mortgages](https://mortgagelane.com/mortgages/family-help-mortgages) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Mortgage Calculators](https://mortgagelane.com/calculators) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Mortgage On a Zero Hour Contract](https://mortgagelane.com/insights/mortgage-on-a-zero-hour-contract) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Mortgages with Defaults, Lender Tiers and Secured Defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults) · [Section 106 Mortgages, Discounted and Restricted Homes](https://mortgagelane.com/mortgages/section-106-mortgages) · [Shared Ownership Mortgages](https://mortgagelane.com/mortgages/shared-ownership-mortgages) · and 2 more - M18 terms - [Making Tax Digital for Income Tax](https://mortgagelane.com/definitions/3#def-making-tax-digital)Regulation — HMRC's system for sole traders and landlords whose qualifying income is above a threshold: digital records, quarterly updates of income and expenses sent through compatible software, and a tax return at the end of the year.Making Tax Digital for Income Tax: Full definition · used on 5 pagesMaking Tax Digital (MTD) for Income Tax applies to sole traders and landlords registered for Self Assessment whose qualifying income is above a threshold. Qualifying income is total turnover from self-employment and property before expenses. From 6 April 2026 it applies where qualifying income was over £50,000 in 2024 to 2025; the threshold falls to £30,000 from 6 April 2027 (2025 to 2026 income) and £20,000 from 6 April 2028 (2026 to 2027 income). Employment income, dividends and a partner's share of partnership profit do not count towards it, and partnerships are not yet included ([GOV.UK: work out your qualifying income](https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax)).Those in MTD keep digital records and send [HMRC](https://mortgagelane.com/definitions/2#def-hm-revenue-and-customs) a quarterly update through compatible software. Each update is cumulative from the start of the tax year and gives totals for each category of income and expense, and a tax return still follows at the end of the year. For a [self-employed mortgage](https://mortgagelane.com/definitions/5#def-self-employed-mortgage) the updates are current-year figures; lenders still assess the annual tax calculation, and whether a lender takes quarterly figures into account is its own decision. — Used on · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgages With Decreasing Profits, Self-Employed Income Falls](https://mortgagelane.com/mortgages/mortgages-with-decreasing-profits) · [One Year Self-Employed Mortgages, 1 Year's Accounts](https://mortgagelane.com/mortgages/one-year-self-employed-mortgages) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) · [Sole Trader Mortgages, Net Profit, SA302s and Lender Methods](https://mortgagelane.com/mortgages/sole-trader-mortgages) - [Management accounts](https://mortgagelane.com/definitions/3#def-management-accounts)Lending and affordability — Accounts a business prepares for its own use for part of a year, such as a month, a quarter or the year to date, showing income, costs and profit since the last annual accounts.Management accounts: Full definition · used on 7 pagesManagement accounts are prepared by or for the business, usually by its bookkeeper or accountant, to track trading between sets of annual accounts. They are not filed with [HMRC](https://mortgagelane.com/definitions/2#def-hm-revenue-and-customs) or Companies House and are not audited, so a lender treats them as supporting evidence rather than as the income it assesses.For a mortgage they show current trading: whether a business whose latest year's [net profit](https://mortgagelane.com/definitions/3#def-net-profit) fell has since recovered, or whether a new business is trading at the level its first figures suggest. A lender that considers them may want them prepared or confirmed by an accountant and read alongside business bank statements. Sole traders and landlords in [Making Tax Digital for Income Tax](https://mortgagelane.com/definitions/3#def-making-tax-digital) also hold year-to-date totals in their cumulative quarterly updates to HMRC, which serve a similar purpose; partnerships and companies are outside that scheme and rely on management accounts. Whether a lender gives either any weight is set by its own criteria. — Used on · [Mortgages With Decreasing Profits, Self-Employed Income Falls](https://mortgagelane.com/mortgages/mortgages-with-decreasing-profits) · [Retained Profits Mortgages, Director Cash and Reserves Checks](https://mortgagelane.com/mortgages/retained-profits-mortgages) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgage declined due to service charge](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-due-to-service-charge) · [One Year Self-Employed Mortgages, 1 Year's Accounts](https://mortgagelane.com/mortgages/one-year-self-employed-mortgages) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) · [Sole Trader Mortgages, Net Profit, SA302s and Lender Methods](https://mortgagelane.com/mortgages/sole-trader-mortgages) - [Mezzanine finance](https://mortgagelane.com/definitions/3#def-mezzanine-finance)Development finance — Finance that sits between senior debt and the borrower’s equity in a project’s funding structure.Mezzanine finance: Full definition · used on 26 pagesFinance that sits between senior debt and the borrower’s equity in a project’s funding structure.In property development it is often subordinate borrowing secured by a second charge or other security. The senior lender’s consent and the agreement between creditors affect how it operates. It increases debt commitments and is repaid according to the agreed priority and exit terms. — Used on · [Additional units or planning permission](https://mortgagelane.com/guides/mezzanine-finance/additional-units-or-planning-permission) · [Can I get a mezzanine development loan with adverse credit?](https://mortgagelane.com/guides/mezzanine-finance/can-i-get-a-mezzanine-development-loan-with-adverse-credit) · [Development Finance For First Time Developers](https://mortgagelane.com/insights/development-finance-first-time-developers) · [Do I need a minimum income for a mezzanine development loan?](https://mortgagelane.com/guides/mezzanine-finance/do-i-need-a-minimum-income-for-a-mezzanine-development-loan) · [Do I need experience for mezzanine development finance?](https://mortgagelane.com/guides/mezzanine-finance/do-i-need-experience-for-mezzanine-development-finance) · [How is interest charged on a development mezzanine loan?](https://mortgagelane.com/guides/mezzanine-finance/how-is-interest-charged-on-a-development-mezzanine-loan) · [Is mezzanine financing risky?](https://mortgagelane.com/guides/mezzanine-finance/is-mezzanine-financing-risky) · [Joint Venture Development Finance](https://mortgagelane.com/short-term-finance/joint-venture-development-finance) · [Mezzanine Finance](https://mortgagelane.com/short-term-finance/mezzanine-finance) · [Mezzanine Finance: detailed guide](https://mortgagelane.com/guides/mortgages-mezzanine-finance-details) · [Minimum income for a hotel development loan?](https://mortgagelane.com/guides/mezzanine-finance/minimum-income-for-a-hotel-development-loan) · [Over budget build costs](https://mortgagelane.com/guides/mezzanine-finance/over-budget-build-costs) · and 14 more - [Missed payment (late payment marker)](https://mortgagelane.com/definitions/3#def-missed-payment)Lending and affordability — A payment not made as agreed, which the lender reports to the credit reference agencies as a status number for each month the account is behind.Missed payment (late payment marker): Full definition · used on 59 pagesLenders that share data with the [credit reference agencies](https://mortgagelane.com/definitions#def-credit-reference-agency) report each account every month. When a payment is not made as agreed, the account is reported as in arrears, with a status code for how many months behind it is: 1 for one month, 2 for two, and so on up to 6 under the credit industry's [Principles for the Reporting of Arrears, Arrangements and Defaults](https://www.cigb.co.uk/wp-content/uploads/2026/07/Principles-for-the-Reporting-of-Arrears-Arrangements-and-Defaults-at-Credit-Reference-Agencies-v2a.pdf).A missed payment is the lightest form of [adverse credit](https://mortgagelane.com/definitions#def-adverse-credit). It is a different entry from a [default](https://mortgagelane.com/definitions/2#def-credit-default), which a lender may record once an account is 3 months in arrears and normally by 6. A temporary reduced payment agreed with the lender is flagged as an [arrangement to pay](https://mortgagelane.com/definitions#def-arrangement-to-pay), although arrears may still be reported against the original terms. Negative information such as a missed payment usually stays on a credit report for six years.Mortgage lenders look at how many missed payments there are, how recent they are, the highest status reached and which account they are on, and some apply a separate, stricter limit to missed mortgage payments. — Used on · [Bad Credit Bridging Loans \| Adverse Credit Accepted](https://mortgagelane.com/short-term-finance/bad-credit-bridging-loans) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) · [Low Credit Score Mortgages, What Lenders Really See](https://mortgagelane.com/mortgages/low-credit-score-mortgages) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [Mortgages with Defaults, Lender Tiers and Secured Defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults) · and 47 more - [Missives](https://mortgagelane.com/definitions/3#def-missives)Planning and tenure — In Scotland, the letters exchanged between the buyer's and seller's solicitors that settle the terms of a property sale. Once missives are concluded they form a binding contract.Missives: Full definition · used on 16 pagesAfter the buyer's offer and the seller's qualified acceptance, the solicitors exchange missives to agree the conditions. The concluding missive makes the contract binding, and a buyer who withdraws after that can have to pay the seller damages. Buyers are advised to insure the property from conclusion of missives unless the missives say otherwise ([mygov.scot: making an offer](https://www.mygov.scot/buy-home/making-offer)). Where the offer incorporates the Scottish Standard Clauses (Edition 6), the risk of damage to or destruction of the property stays with the seller until settlement, so the buyer's solicitor confirms from the missives when the buyer's buildings insurance needs to start ([Law Society of Scotland: Scottish Standard Clauses, Edition 6](https://lawscot.org.uk/media/r4cj1kvd/3-client-guide-for-scottish-standard-clauses-edition-6.pdf)). [mygov.scot: missives](https://www.mygov.scot/sell-home/missives). — Used on · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [Property Development Finance in Scotland](https://mortgagelane.com/short-term-finance/property-development-finance-scotland) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Buy to Let Mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) · and 4 more - [Mixed-use property](https://mortgagelane.com/definitions/3#def-mixed-use-property)Fees and charges — Property with both residential and non-residential parts bought in one transaction, such as a shop with a flat above. The UK land taxes charge it at their non-residential rates.Mixed-use property: Full definition · used on 97 pagesFor [Stamp Duty Land Tax](https://mortgagelane.com/definitions/5#def-stamp-duty-land-tax) in England and Northern Ireland, a purchase that includes both residential and non-residential property, such as a shop with a flat above, is charged at the non-residential and mixed rates: nil up to £150,000, 2% to £250,000 and 5% above, as at October 2026. The higher rates for additional dwellings do not apply to a mixed purchase ([GOV.UK: buying an additional residential property](https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property)).Wales charges [Land Transaction Tax](https://mortgagelane.com/definitions/3#def-land-transaction-tax) on mixed use property at its non-residential rates, and its higher residential rates do not usually apply. Scotland charges [Land and Buildings Transaction Tax](https://mortgagelane.com/definitions/3#def-land-and-buildings-transaction-tax) at non-residential rates on the whole price, but the [Additional Dwelling Supplement](https://mortgagelane.com/definitions#def-additional-dwelling-supplement) can apply to the part of the price attributable to a dwelling ([Revenue Scotland: LBTT4011 mixed transactions](https://revenue.scot/taxes/land-buildings-transaction-tax/lbtt-legislation-guidance/residentialnon-residential-technical-guidance/lbtt4011-mixed-transactions)). Whether a property counts as mixed use depends on the facts at the date of purchase, so a conveyancer or tax adviser confirms it. — Used on · [Bridging Loan for a Self-Build \| Plot Purchase & Gaps](https://mortgagelane.com/short-term-finance/for-a-self-build) · [Country House Mortgages \| Land, Listed & Rural Homes](https://mortgagelane.com/mortgages/country-house-mortgages) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [12-Unit MUFB, West Midlands](https://mortgagelane.com/case-studies/mufb-purchase-west-midlands) · [Acreage mortgage](https://mortgagelane.com/guides/rural-mortgages/acreage-mortgage) · [Agricultural Bridging Loans](https://mortgagelane.com/insights/agricultural-bridging-loan) · [Agricultural bridging loan](https://mortgagelane.com/guides/bridging-loans/agricultural-bridging-loan) · [Agricultural tie mortgage](https://mortgagelane.com/guides/rural-mortgages/agricultural-tie-mortgage) · [Applicants Based Overseas](https://mortgagelane.com/guides/commercial-buy-to-let-mortgages/applicants-based-overseas) · [Bridge loan for business acquisition](https://mortgagelane.com/guides/business-bridging-loans/bridge-loan-for-business-acquisition) · [Bridge loan for small business](https://mortgagelane.com/guides/business-bridging-loans/bridge-loan-for-small-business) · [Bridging Loan Cardiff](https://mortgagelane.com/insights/cardiff-bridging-loans) · and 85 more - [Modern methods of construction (MMC)](https://mortgagelane.com/definitions/3#def-modern-methods-of-construction)Valuation — A broad term for building homes using offsite manufacture, such as factory-built modules or panels, or onsite techniques that reduce labour, as set out in the government's seven-category definition framework.Modern methods of construction (MMC): Full definition · used on 6 pagesThe framework published in 2019 runs from category 1, factory-made three-dimensional structural units, and category 2, two-dimensional panel systems, through other pre-manufactured components to categories 6 and 7, site-based improvements.Lenders consider MMC homes case by case. Some ask for accreditation such as BOPAS, developed with mortgage lenders to show an offsite system will last more than 60 years, and an acceptable [structural warranty](https://mortgagelane.com/definitions/3#def-new-build-warranty). — Used on · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Non standard construction mortgage Scotland](https://mortgagelane.com/guides/buy-to-let-mortgage-scotland/non-standard-construction-mortgage-scotland) · [Non-Standard Construction Mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · [Property Development Finance in Scotland](https://mortgagelane.com/short-term-finance/property-development-finance-scotland) · [The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) - [Monitoring surveyor](https://mortgagelane.com/definitions/3#def-monitoring-surveyor)Development finance — A chartered surveyor appointed for a development lender to assess the scheme's risks, inspect progress and certify each drawdown before the lender releases funds.Monitoring surveyor: Full definition · used on 17 pagesRICS calls the role the lender's independent monitoring surveyor; it is also known as a project monitoring surveyor or bank monitor. During construction the surveyor visits the site, reviews spending against the budget and the cost to complete, agrees progress and the drawdown amount with the borrower, and issues a drawdown certificate to the lender with a report on any emerging risks.The surveyor acts for the lender, not the developer. See [drawdown](https://mortgagelane.com/definitions/2#def-drawdown) and [property development finance](https://mortgagelane.com/short-term-finance/property-development-finance). — Used on · [Build to Rent Development Finance](https://mortgagelane.com/short-term-finance/build-to-rent-development-finance) · [Ground Up Development Finance](https://mortgagelane.com/short-term-finance/ground-up-development-finance) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [Hotel Development Finance](https://mortgagelane.com/short-term-finance/hotel-development-finance) · [Joint Venture Development Finance](https://mortgagelane.com/short-term-finance/joint-venture-development-finance) · [PBSA Finance, Purpose-Built Student Accommodation](https://mortgagelane.com/short-term-finance/pbsa-finance) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · [Re-Bridging Loans, What Is Re-Bridging and Bridging Extensions](https://mortgagelane.com/short-term-finance/re-bridging-loans) · [Residential Development Finance](https://mortgagelane.com/short-term-finance/residential-development-finance) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) · [Self Build Mortgages](https://mortgagelane.com/short-term-finance/self-build-mortgages) · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · and 5 more - [Mortgage](https://mortgagelane.com/definitions/3#def-mortgage)Lending and affordability — A loan secured against property, repaid over an agreed term, where the lender holds a legal charge over the property until the debt is cleared.Mortgage: Full definition · used on 833 pagesA loan secured against property, repaid over an agreed term, where the lender holds a legal charge over the property until the debt is cleared.The charge is what separates a mortgage from unsecured borrowing: it gives the lender a route to recover the debt from the property itself, which is why the property is assessed as closely as the borrower. Rate, term, repayment method and the criteria applied all follow from what the property is and what it is used for.Your home may be repossessed if you do not keep up repayments on your mortgage. — Used on · [Accidental landlord mortgage](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/accidental-landlord-mortgage) · [Acreage mortgage](https://mortgagelane.com/guides/rural-mortgages/acreage-mortgage) · [Agricultural Bridging Loans](https://mortgagelane.com/insights/agricultural-bridging-loan) · [Agricultural land mortgage](https://mortgagelane.com/guides/rural-mortgages/agricultural-land-mortgage) · [Agricultural tie mortgage](https://mortgagelane.com/guides/rural-mortgages/agricultural-tie-mortgage) · [Alternatives to bridging loans](https://mortgagelane.com/short-term-finance/alternatives-to-bridging-loans) · [Are valuations regulated?](https://mortgagelane.com/guides/hmo-mortgage-valuations/are-valuations-regulated) · [Bad Credit Bridging Loans \| Adverse Credit Accepted](https://mortgagelane.com/short-term-finance/bad-credit-bridging-loans) · [Bad credit mortgage declined](https://mortgagelane.com/guides/declined-mortgages/bad-credit-mortgage-declined) · [Barn Conversion Mortgages](https://mortgagelane.com/insights/barn-conversion-mortgages) · [Barn conversion mortgage](https://mortgagelane.com/guides/self-build-mortgages/barn-conversion-mortgage) · [Best Buy To Let Mortgages For HMO](https://mortgagelane.com/insights/best-buy-to-let-mortgages-for-hmo) · and 821 more - [Mortgage Charter](https://mortgagelane.com/definitions/3#def-mortgage-charter)Regulation — A set of commitments by UK mortgage lenders, published by HM Treasury and reaffirmed in March 2026, on supporting residential borrowers worried about their payments, including switching to a new deal at the end of a fixed rate without another affordability check.Mortgage Charter: Full definition · used on 2 pagesThe Mortgage Charter was introduced in 2023, and HM Treasury published the current version on 26 March 2026, when lenders reaffirmed their commitment to it. Its signatories represent approximately 90% of the mortgage market. The commitments apply to regulated residential mortgages, not to [buy to let](https://mortgagelane.com/definitions#def-buy-to-let-mortgage).Lenders support customers who are up to date with payments in switching to a new deal at the end of a fixed rate without another [affordability](https://mortgagelane.com/definitions#def-affordability) check, where they are not borrowing more or changing the repayment type or term, which is how a [product transfer](https://mortgagelane.com/definitions/4#def-product-transfer) can work. A new deal can be locked in up to six months ahead. Up-to-date customers can also, once, switch to interest-only payments for six months or extend the term with the option to go back within six months, without a new affordability check. Contacting a lender about payment worries does not affect the credit file, a borrower will not be forced to leave their home without consent, except in exceptional circumstances, within a year of the first missed payment, and customers in arrears are asked to keep working with their lender ([HM Treasury: Mortgage Charter](https://www.gov.uk/government/publications/mortgage-charter-2026/mortgage-charter)). — Used on · [Remortgage with Bad Credit, Product Transfer or Switch](https://mortgagelane.com/mortgages/remortgage-with-bad-credit) · [Mortgages with Defaults, Lender Tiers and Secured Defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults) - [Mortgage Guarantee Scheme](https://mortgagelane.com/definitions/3#def-mortgage-guarantee-scheme)Residential — A government scheme under which HM Treasury guarantees participating lenders against part of their losses on eligible high loan-to-value mortgages, so they can lend to buyers with small deposits.Mortgage Guarantee Scheme: Full definition · used on 17 pagesUnder the 2025 scheme rules an eligible loan is a repayment [regulated mortgage](https://mortgagelane.com/definitions/4#def-regulated-mortgage) on a UK home the borrower will live in, for a first-time buyer or home mover, with a loan-to-value above 90% and no more than 95%. Buy-to-let loans and shared ownership or shared equity purchases are outside it, and value means the valuation or, if lower, the price.The guarantee is between the government and the lender. The borrower takes an ordinary mortgage, and each lender still applies its own lending and property criteria. [GOV.UK: 2025 Mortgage Guarantee Scheme](https://www.gov.uk/government/publications/2025-mortgage-guarantee-scheme). — Used on · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [Mortgages After Bankruptcy, Discharged Bankrupts and DROs](https://mortgagelane.com/mortgages/bankruptcy-mortgages) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Mortgages in Northern Ireland, Calculator and Co-Ownership](https://mortgagelane.com/mortgages/mortgages-northern-ireland) · [Mortgages with Defaults, Lender Tiers and Secured Defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults) · [Mortgages with Missed Payments, Late Payments and Arrears](https://mortgagelane.com/mortgages/mortgages-with-missed-payments) · [Single Person Mortgages, Buying Alone and Applying Alone](https://mortgagelane.com/mortgages/single-person-mortgages) · [90% LTV Mortgages](https://mortgagelane.com/mortgages/90-ltv-mortgages) · and 5 more - [Mortgage offer](https://mortgagelane.com/definitions/3#def-mortgage-offer)Lending and affordability — A lender's formal written offer to lend on a particular property, issued after its underwriting and valuation. It is binding on the lender but carries conditions and a date by which it must be used.Mortgage offer: Full definition · used on 89 pagesFor an MCD regulated mortgage contract, the kind of regulated mortgage normally used to buy a home, the FCA requires the lender to set out a binding offer in an offer document and to give the borrower a reflection period of at least seven days, during which the offer stays binding and can be accepted at any time ([FCA Handbook: MCOB 6A.3](https://www.handbook.fca.org.uk/handbook/MCOB/6A/3.html)). The offer can carry lawful conditions. The FCA's guidance gives as examples a material change after the offer, such as loss of employment or further secured borrowing that is likely to affect affordability, a change affecting the condition, value or title of the property, and the borrower knowingly giving incomplete or inaccurate information. A lender cannot use conditions to avoid a proper affordability assessment before it makes the offer.Each offer has a validity period set by the lender. If completion is delayed beyond it, the lender may extend the offer, sometimes after fresh checks, or ask for a new application. The offer is separate from the purchase contract, so a withdrawal after [exchange of contracts](https://mortgagelane.com/definitions/2#def-exchange-of-contracts) does not release the buyer from the purchase. — Used on · [Bridging Loan Agreement in Principle \| Process & Criteria](https://mortgagelane.com/short-term-finance/agreement-in-principle) · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [New Build Mortgages \| Deposits, Incentives & Timing](https://mortgagelane.com/guides/residential/new-build-mortgages) · [Regulated Buy to Let Mortgages, Family and Consumer Buy to Let](https://mortgagelane.com/mortgages/regulated-buy-to-let-mortgages) · [Remortgage for Home Improvements, Extensions and Lofts](https://mortgagelane.com/mortgages/remortgage-for-home-improvements) · [Retained Profits Mortgages, Director Cash and Reserves Checks](https://mortgagelane.com/mortgages/retained-profits-mortgages) · [90% LTV Mortgages](https://mortgagelane.com/mortgages/90-ltv-mortgages) · [95% Mortgages](https://mortgagelane.com/mortgages/95-percent-mortgages) · and 77 more - [Mortgage payment protection insurance (MPPI)](https://mortgagelane.com/definitions/3#def-mortgage-payment-protection)Insurance — A short-term policy that pays the monthly mortgage payment for a limited period if illness or injury, and under some policies unemployment, stops you working.Mortgage payment protection insurance (MPPI): Full definition · used on 1 pageMortgage payment protection insurance (MPPI) is a short-term policy that pays the monthly mortgage payment if the policyholder cannot work because of illness or injury, and some policies also pay on unemployment. It pays for a limited period set by the policy, such as one or two years, and covers only the mortgage payment rather than income.The FCA Handbook classes this kind of cover as a payment protection contract: a non-investment insurance contract with general insurance elements whose benefits protect the policyholder's ability to keep making payments ([FCA Handbook: glossary, payment protection contract](https://www.handbook.fca.org.uk/handbook/glossary/G2560.html)). It is narrower than [income protection insurance](https://mortgagelane.com/definitions/3#def-income-protection), which replaces part of income for as long as its benefit period allows, and it is separate from [Support for Mortgage Interest](https://mortgagelane.com/definitions/5#def-support-for-mortgage-interest), the state loan towards mortgage interest for people getting a qualifying benefit. — Used on · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) - [Mortgage valuation](https://mortgagelane.com/definitions/3#def-mortgage-valuation)Valuation — A limited inspection and valuation carried out for the lender to check that the property is reasonable security for the loan. It is for the lender's benefit and is not a survey of the property's condition.Mortgage valuation: Full definition · used on 84 pagesThe lender instructs its own valuer and lends on that figure, not on the agreed price: on an ordinary purchase, lenders that state a basis lend on the lower of the price and the valuation, so a [down valuation](https://mortgagelane.com/definitions/2#def-down-valuation) reduces the loan or raises the loan-to-value. Some properties are valued by an [automated valuation model](https://mortgagelane.com/definitions#def-automated-valuation-model) or a [desktop valuation](https://mortgagelane.com/definitions/2#def-desktop-valuation) instead of an inspection.Because it is not a survey, defects that would be costly to put right may not appear in it; a buyer who wants a view of condition commissions an [RICS Home Survey](https://mortgagelane.com/definitions/4#def-rics-home-survey). [RICS: mortgage valuations and surveys](https://www.rics.org/consumer-guides/house-surveys-uk-the-costs-types-and-benefits-of-an-rics-home-survey). — Used on · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Bridging Loans for HMOs \| Buy, Convert & Refinance](https://mortgagelane.com/short-term-finance/bridging-finance-for-hmos) · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [Flat roof mortgage](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/flat-roof-mortgage) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · and 72 more - [Mortgagee in possession clause](https://mortgagelane.com/definitions/3#def-mortgagee-in-possession-clause)Planning and tenure — A clause in a section 106 agreement that frees a mortgage lender which repossesses a restricted home from the agreement's sale and occupancy restrictions, so it can sell the home and recover the loan. Some clauses apply at once and others only after the home has been offered to eligible buyers for a set period.Mortgagee in possession clause: Full definition · used on 1 pageA lender that repossesses a home has to sell it. If a [section 106 agreement](https://mortgagelane.com/definitions/5#def-section-106-agreement) bound the lender as well, it could sell only to eligible buyers at the restricted price, so lenders that accept restricted homes look for a clause releasing or relaxing those terms on a repossession sale. The wording varies: some clauses release the lender at once, some after a period offering the home to eligible buyers, the council or a [housing association](https://mortgagelane.com/definitions/2#def-housing-association), and some reimpose the restrictions on later owners.For [First Homes](https://mortgagelane.com/definitions/2#def-first-homes), government guidance says a mortgagee exclusion clause should be in every planning obligation: a lender enforcing its security can sell on the open market at [open market value](https://mortgagelane.com/definitions/3#def-open-market-value), and once the lender is repaid the council receives the remaining proceeds up to the value of the discount ([GOV.UK: First Homes guidance](https://www.gov.uk/guidance/first-homes)). The clause differs from the mortgagee protection clause in a [shared ownership](https://mortgagelane.com/definitions/5#def-shared-ownership) lease, under which the landlord can cover part of a lender's loss. — Used on · [Section 106 Mortgages, Discounted and Restricted Homes](https://mortgagelane.com/mortgages/section-106-mortgages) - [Mortgages and Home Finance: Conduct of Business sourcebook (MCOB)](https://mortgagelane.com/definitions/3#def-mcob)Regulation — The part of the FCA Handbook that sets the rules for regulated mortgage business, covering lenders, administrators and the intermediaries who arrange and advise on regulated mortgages.Mortgages and Home Finance: Conduct of Business sourcebook (MCOB): Full definition · used on 94 pagesMCOB applies to regulated mortgage contracts and other home finance, such as equity release and home purchase plans. It covers how firms advise and sell, what they must disclose, and how a lender assesses affordability before lending.A lender must not enter into a regulated mortgage unless it can show the mortgage is affordable, and in that assessment it must consider likely future interest rates over at least five years unless the rate is fixed for five years or more. An interest-only loan needs a clearly understood and credible repayment strategy. Where an existing customer takes a new deal with the same lender with no additional borrowing and no change material to affordability, the affordability rule does not apply. [FCA Handbook: MCOB](https://handbook.fca.org.uk/handbook/mcob). — Used on · [B&B Mortgage](https://mortgagelane.com/insights/bed-and-breakfast-mortgage) · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [Fixed Term Mortgages](https://mortgagelane.com/mortgages/fixed-term-mortgages) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Interest Only Residential Mortgages](https://mortgagelane.com/mortgages/interest-only-residential-mortgages) · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · and 82 more - [MUFB bridging finance](https://mortgagelane.com/definitions/3#def-mufb-bridging)Bridging finance — A short-term loan on a multi-unit freehold block, repaid by refinancing the block or selling some or all units.MUFB bridging finance: Full definition · used on 3 pagesA short-term loan on a multi-unit freehold block, repaid by refinancing the block or selling some or all units.The lender may value the whole block as one investment rather than add up the separate flat values. That choice, and the rent the exit lender accepts, can change how much can be refinanced.[Read about bridging loan for an mufb](https://mortgagelane.com/short-term-finance/bridging-loan-for-an-mufb). — Used on · [Bridging Loan for an MUFB \| Multi-Unit Freehold Blocks](https://mortgagelane.com/short-term-finance/bridging-loan-for-an-mufb) · [Bridging Loans for HMOs \| Buy, Convert & Refinance](https://mortgagelane.com/short-term-finance/bridging-finance-for-hmos) · [What can a bridging loan be used for?](https://mortgagelane.com/guides/bridging-loan-guide/what-can-a-bridging-loan-be-used-for) - [Multi-unit freehold block (MUFB)](https://mortgagelane.com/definitions/3#def-mufb)Buy-to-let — A multi-unit freehold block is a building containing multiple self-contained residential units held under one freehold title.Multi-unit freehold block (MUFB): Full definition · used on 44 pagesA multi-unit freehold block is a building containing multiple self-contained residential units held under one freehold title.Each unit has its own living facilities, unlike a typical shared-facility HMO. The title structure, leases, unit layout and rental income affect the lender’s assessment; the units do not necessarily have individual leasehold titles. — Used on · [85% LTV Mortgages](https://mortgagelane.com/mortgages/85-ltv-mortgages) · [Bridging Loan for an MUFB \| Multi-Unit Freehold Blocks](https://mortgagelane.com/short-term-finance/bridging-loan-for-an-mufb) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Commercial Buy to Let Mortgages](https://mortgagelane.com/insights/commercial-buy-to-let-mortgages) · [Commercial Mortgage For Block Of Flats](https://mortgagelane.com/insights/commercial-mortgage-for-block-of-flats) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Commercial mortgage for a block of flats](https://mortgagelane.com/guides/commercial-mortgage-guide/a-block-of-flats) · [EWS1 for converted MUFB remortgage](https://mortgagelane.com/guides/mufb-mortgage/ews1-for-converted-mufb-remortgage) · [Investor Led Buy to Let Mortgages](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/investor-led-buy-to-let-mortgages) · [MUFB Mortgages](https://mortgagelane.com/mortgages/mufb-mortgage) · [MUFB Mortgages: detailed guide](https://mortgagelane.com/guides/mortgages-mufb-mortgage-details) · [MUFB mortgage with studio flats](https://mortgagelane.com/guides/mufb-mortgage/studio-flats) · and 32 more - N14 terms - [Net bridging advance](https://mortgagelane.com/definitions/3#def-net-bridging-advance)Bridging finance — The money available from a bridging loan after deductions such as fees and retained interest.Net bridging advance: Full definition · used on 2 pagesThe money available from a bridging loan after deductions such as fees and retained interest.A retained-interest loan can provide much less cash than its headline gross amount. Rolled-up interest instead increases the balance over time, so the net advance and final redemption figure must be considered separately.[Read about bridging loans: how much can i borrow?](https://mortgagelane.com/short-term-finance/how-much-can-i-borrow). — Used on · [Bridging Loans: How Much Can I Borrow? \| Gross vs Net](https://mortgagelane.com/short-term-finance/how-much-can-i-borrow) · [How much can I borrow on land?](https://mortgagelane.com/guides/land-bridging-loans/how-much-can-i-borrow-on-land) - [Net loan](https://mortgagelane.com/definitions/3#def-net-loan)Bridging finance — The cash actually released to the borrower after retained interest and any deducted fees are taken out of the gross loan. This is the figure a purchase or a works budget has to be built on.Net loan: Full definition · used on 9 pagesThe net loan is what reaches the borrower or the solicitor on completion, once retained interest and any fees taken from the advance have been deducted from the gross loan.The gap between the two widens with the length of the term and the rate, because retained interest is calculated for the whole term at the outset. Any quote worth comparing states both figures, and states which of them the loan-to-value percentage refers to. — Used on · [Bridging Loan for an MUFB \| Multi-Unit Freehold Blocks](https://mortgagelane.com/short-term-finance/bridging-loan-for-an-mufb) · [Bridging Loans: How Much Can I Borrow? \| Gross vs Net](https://mortgagelane.com/short-term-finance/how-much-can-i-borrow) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [Re-Bridging Loans, What Is Re-Bridging and Bridging Extensions](https://mortgagelane.com/short-term-finance/re-bridging-loans) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Commercial business bridging loans](https://mortgagelane.com/guides/business-bridging-loans/commercial-business-bridging-loans) · [Development Exit Finance](https://mortgagelane.com/short-term-finance/development-exit-finance) · [Rural Bridging Loan](https://mortgagelane.com/insights/rural-bridging-loans) · [What is a bridging loan?](https://mortgagelane.com/insights/what-is-a-bridging-loan) - [Net profit (self-employment)](https://mortgagelane.com/definitions/3#def-net-profit)Lending and affordability — A self-employed person's business income after allowable expenses: the figure on the self-employment pages of the Self Assessment return and the income a lender reads for a sole trader.Net profit (self-employment): Full definition · used on 125 pagesNet profit is turnover less allowable business expenses, after capital allowances where they apply. For a sole trader it is taxable income, and Income Tax is charged on it through Self Assessment. On the cash basis, the standard method for sole traders, most equipment is claimed as an expense when it is paid for and capital allowances are claimed only on cars; under traditional accounting, capital allowances are claimed on equipment and vehicles ([GOV.UK: expenses if you are self-employed](https://www.gov.uk/expenses-if-youre-self-employed)).Mortgage lenders read net profit from the tax calculation or the accounts, and turnover is not counted as income. Each lender decides which year, or which average of years, to use, and every pound of expenses claimed lowers the figure a lender reads as well as the tax due. A partner's equivalent is their share of the partnership's profit. — Used on · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Mortgages With Decreasing Profits, Self-Employed Income Falls](https://mortgagelane.com/mortgages/mortgages-with-decreasing-profits) · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-mortgages) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Sole Trader Mortgages, Net Profit, SA302s and Lender Methods](https://mortgagelane.com/mortgages/sole-trader-mortgages) · [B&B Mortgage](https://mortgagelane.com/insights/bed-and-breakfast-mortgage) · [Buy to Let and Commercial Mortgages Declined on Affordability](https://mortgagelane.com/insights/what-to-do-if-your-mortgage-is-declined-on-affordability) · [CIS Mortgages, Construction Industry Scheme](https://mortgagelane.com/mortgages/cis-mortgages) · [Can I get a 100% commercial mortgage?](https://mortgagelane.com/guides/commercial-mortgages/can-i-get-a-100-commercial-mortgage) · and 113 more - [New build mortgage](https://mortgagelane.com/definitions/3#def-new-build-mortgage)Residential — A mortgage subject to a lender’s new-build rules on property condition, incentives, construction cover and completion timing.New build mortgage: Full definition · used on 24 pagesA mortgage subject to a lender’s new-build rules on property condition, incentives, construction cover and completion timing.The definition of new build varies by lender. Incentives must be disclosed, construction cover must be accepted, and the mortgage offer must remain valid when the property is ready to complete.[Read about new build home mortgages](https://mortgagelane.com/guides/residential/new-build-mortgages). — Used on · [New Build Mortgages \| Deposits, Incentives & Timing](https://mortgagelane.com/guides/residential/new-build-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Help to Buy Mortgages](https://mortgagelane.com/mortgages/help-to-buy-mortgages) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [Mortgage on new build off plan](https://mortgagelane.com/guides/residential/mortgage-on-new-build-off-plan) · and 12 more - [New build warranty](https://mortgagelane.com/definitions/3#def-new-build-warranty)Valuation — An insurance-backed warranty on a newly built or converted home that covers defined defects, normally for ten years after completion. Mortgage lenders look at the warranty, or other build assurance they accept, when lending on a new home.New build warranty: Full definition · used on 18 pagesLABC Warranty describes a structural warranty as an insurance policy against defects in new buildings, normally for ten years after completion. NHBC's Buildmark, for example, combines insolvency cover after exchange, a two-year builder warranty and eight years of insurance against defects to certain parts of the home. LABC itself is Local Authority Building Control, the membership body for council building control teams in England and Wales; LABC Warranty is a separate business that provides warranties in partnership with it.Where a home has no warranty, some lenders consider a [Professional Consultant Certificate](https://mortgagelane.com/definitions/4#def-professional-consultant-certificate) instead. [Modern methods of construction](https://mortgagelane.com/definitions/3#def-modern-methods-of-construction) may also need system accreditation. — Used on · [Non-Standard Construction Mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages) · [Self Build Mortgages](https://mortgagelane.com/short-term-finance/self-build-mortgages) · [A Guide to Investing in New Builds and Conversions](https://mortgagelane.com/insights/investing-in-new-builds-and-conversions) · [Barn Conversion Mortgages](https://mortgagelane.com/insights/barn-conversion-mortgages) · [Barn conversion mortgage](https://mortgagelane.com/guides/self-build-mortgages/barn-conversion-mortgage) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) · [Hybrid valuation](https://mortgagelane.com/guides/hmo-mortgages/hybrid-valuation) · [Investor Led mortgages](https://mortgagelane.com/guides/commercial-buy-to-let-mortgages/investor-led-mortgages) · [MUFB Mortgages](https://mortgagelane.com/mortgages/mufb-mortgage) · [Mortgage for a completed barn conversion](https://mortgagelane.com/guides/barn-conversion-mortgages/mortgage-for-a-completed-barn-conversion) · and 6 more - [NIE number](https://mortgagelane.com/definitions/3#def-nie-number)Specialist lending — Spain's identification number for foreigners who have economic, professional or social dealings in Spain, needed for tax transactions such as opening a bank account or buying property.NIE number: Full definition · used on 4 pagesThe NIE, Número de Identidad de Extranjero, identifies the holder to the Spanish public administration but does not give the right to live in Spain or prove residence. Buyers outside Spain can apply through a Spanish embassy or consulate, or a representative. See [Spanish mortgages](https://mortgagelane.com/definitions/5#def-spanish-mortgage). [Spanish Consulate General in London: NIE](https://www.exteriores.gob.es/Consulados/londres/en/ServiciosConsulares/Paginas/Consular/NIE.aspx). — Used on · [Non-resident mortgages in Spain](https://mortgagelane.com/guides/spanish-mortgages/non-resident-mortgages-in-spain) · [Spanish Mortgages](https://mortgagelane.com/insights/spanish-mortgages) · [Spanish Mortgages: detailed guide](https://mortgagelane.com/guides/insights-spanish-mortgages-details) · [Spanish mortgages for UK buyers](https://mortgagelane.com/guides/spanish-mortgages/uk-buyers) - [Nil valuation](https://mortgagelane.com/definitions/3#def-nil-valuation)Valuation — A lender's valuer reporting that a property is not acceptable security for that lender at any value, so the lender will not lend on it. It reflects the property measured against that lender's criteria, not the price agreed.Nil valuation: Full definition · used on 9 pagesA [mortgage valuation](https://mortgagelane.com/definitions/3#def-mortgage-valuation) normally gives a figure. A nil valuation is reported instead, usually when the property falls outside the lending criteria of the lender that instructed the valuer, for example because of the way it was built, cladding or structural problems. RICS explains that nil valuations are usually due to the lender's criteria, so the valuer is acting on its client's instructions, and that a borrower who thinks the property was assessed wrongly against those criteria should raise it with the lender. [RICS: concerns about valuations](https://www.rics.org/content/dam/ricsglobal/documents/standards/2024_April_Appendix_A_Concerns_About_Valuations_Version_2.pdf).A nil valuation is different from a [down valuation](https://mortgagelane.com/definitions/2#def-down-valuation), where the property is acceptable security at a lower figure. Because each lender sets its own property criteria, a property one lender values at nil can be acceptable to another, such as a lender that accepts [non-standard construction](https://mortgagelane.com/definitions/3#def-non-standard-construction), or once the problem has been put right. — Used on · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [Mortgage declined after survey](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-after-survey) · [Mortgage refused cavity wall insulation](https://mortgagelane.com/guides/declined-mortgages/mortgage-refused-cavity-wall-insulation) · [Mortgage refused due to flood risk](https://mortgagelane.com/guides/declined-mortgages/mortgage-refused-due-to-flood-risk) · [Mortgage refused due to mine shaft](https://mortgagelane.com/guides/declined-mortgages/mortgage-refused-due-to-mine-shaft) · [Mortgage refused spray foam](https://mortgagelane.com/guides/declined-mortgages/mortgage-refused-spray-foam) · [Spray foam roof insulation mortgage declinations](https://mortgagelane.com/guides/declined-mortgages/spray-foam-roof-insulation-mortgage-declinations) - [No negative equity guarantee](https://mortgagelane.com/definitions/3#def-no-negative-equity-guarantee)Regulation — A protection on lifetime mortgages that meet the Equity Release Council's standards: you or your estate will never owe more than the home sells for, provided the terms are kept.No negative equity guarantee: Full definition · used on 1 pageThe no negative equity guarantee is one of the Equity Release Council's product standards. If the home is sold for the best price reasonably obtainable and the terms of the loan are kept, the borrower or the estate never owes more than the property is worth, after reasonable sale costs, even if the [lifetime mortgage](https://mortgagelane.com/definitions/3#def-lifetime-mortgage) balance has grown larger ([Equity Release Council: standards](https://www.equityreleasecouncil.com/about/standards/)).It applies to plans that meet the Council's standards. It protects the estate against a shortfall, but where rolled-up interest takes the balance to the sale price, nothing is left after the loan is repaid. It is distinct from [negative equity](https://mortgagelane.com/definitions/2#def-equity) on an ordinary mortgage, where the borrower stays liable for any shortfall. — Used on · [Release Equity From Your Home, Remortgage and Equity Release](https://mortgagelane.com/mortgages/release-equity-from-your-home) - [Nomination agreement](https://mortgagelane.com/definitions/3#def-nomination-agreement)Commercial — An agreement under which a university or college arranges for its students to occupy rooms in purpose-built student accommodation, sometimes guaranteeing payment for a set number of rooms.Nomination agreement: Full definition · used on 3 pagesUnder some agreements the accommodation provider sets aside a defined number of rooms and the university pays for them by a guaranteed payment; under others the university refers students and may or may not have to pay for rooms left empty. See [purpose-built student accommodation](https://mortgagelane.com/definitions/4#def-purpose-built-student-accommodation) and [PBSA finance](https://mortgagelane.com/short-term-finance/pbsa-finance). — Used on · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · [PBSA Finance, Purpose-Built Student Accommodation](https://mortgagelane.com/short-term-finance/pbsa-finance) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) - [Non-standard construction](https://mortgagelane.com/definitions/3#def-non-standard-construction)Valuation — A way of building a home that a lender does not class as standard under its own property criteria. Each lender keeps its own list, so the same home can be standard at one lender and non-standard at another.Non-standard construction: Full definition · used on 66 pagesLenders define standard construction differently. Some require brick or stone walls with a tile or slate roof, while others treat thatch and modern timber frame with a masonry outer wall as standard or traditional construction.Homes often treated as non-standard include precast reinforced concrete (PRC) systems such as Cornish and Woolaway, steel systems such as BISF, large panel system blocks and timber kit homes such as Colt, along with single skin walls, spray foam insulation and, at some lenders, flat roofs, deck access or thatch.The lender decides from the exact system and build year, any repair certificate or accreditation, the outer walls, warranty and insurance, and its valuer's view of condition and saleability. — Used on · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Flat roof mortgage](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/flat-roof-mortgage) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [Mortgage declined after survey](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-after-survey) · [Mortgage on an Ex-Council Flat](https://mortgagelane.com/mortgages/mortgage-on-an-ex-council-flat) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [Non standard construction mortgage Scotland](https://mortgagelane.com/guides/buy-to-let-mortgage-scotland/non-standard-construction-mortgage-scotland) · [Non-Standard Construction Mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages) · [PRC construction mortgage](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/prc-construction-mortgage) · [Self Build Mortgages](https://mortgagelane.com/short-term-finance/self-build-mortgages) · [Spray Foam Insulation Mortgages](https://mortgagelane.com/insights/spray-foam-insulation-mortgages) · and 54 more - [Non-status bridging loan](https://mortgagelane.com/definitions/3#def-non-status-bridging-loan)Bridging finance — A term used for bridging finance assessed mainly on the property security and proposed exit rather than conventional income multiples.Non-status bridging loan: Full definition · used on 19 pagesA term used for bridging finance assessed mainly on the property security and proposed exit rather than conventional income multiples.It does not mean no checks, guaranteed approval or an exemption from regulation. Lenders still apply borrower, credit, identity and repayment requirements appropriate to the loan. — Used on · [Can I get 100% loan to value on a non status bridging loan?](https://mortgagelane.com/guides/non-status-bridging-loans/can-i-get-100-loan-to-value-on-a-non-status-bridging-loan) · [How long does a bridging loan take to complete](https://mortgagelane.com/guides/non-status-bridging-loans/how-long-does-a-bridging-loan-take-to-complete) · [Non Status Bridging Loans](https://mortgagelane.com/insights/non-status-bridging-loans) · [Non Status Bridging Loans: detailed guide](https://mortgagelane.com/guides/insights-non-status-bridging-loans-details) · [Serviced Interest](https://mortgagelane.com/guides/non-status-bridging-loans/serviced-interest) · [What valuation will be instructed on a non status bridging loan?](https://mortgagelane.com/guides/non-status-bridging-loans/what-valuation-will-be-instructed-on-a-non-status-bridging-loan) · [Why are bridging finance lenders more asset focused?](https://mortgagelane.com/guides/non-status-bridging-loans/why-are-bridging-finance-lenders-more-asset-focused) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Bridging and development topics](https://mortgagelane.com/guides/bridging-and-development-topics) · [Business Bridging Loans](https://mortgagelane.com/short-term-finance/business-bridging-loans) · [Can First time buyers get a land bridging loan?](https://mortgagelane.com/guides/land-bridging-loans/can-first-time-buyers-get-a-land-bridging-loan) · [Can I get a mezzanine development loan with adverse credit?](https://mortgagelane.com/guides/mezzanine-finance/can-i-get-a-mezzanine-development-loan-with-adverse-credit) · and 7 more - [Non-utilisation fee (commitment fee)](https://mortgagelane.com/definitions/3#def-non-utilisation-fee)Fees and charges — A fee a lender charges on the part of a facility's limit that is available but not drawn, for keeping that money committed to the borrower.Non-utilisation fee (commitment fee): Full definition · used on 5 pagesRevolving credit facilities, and some development facilities, charge interest only on the money drawn. The lender still has to keep the rest of the limit available, so the facility agreement may add a non-utilisation fee, also called a commitment fee, calculated on the undrawn balance and charged at the intervals the agreement sets.Each lender sets the fee, usually as a percentage of the undrawn amount. It makes a facility that is kept mostly undrawn cost more than one drawn steadily, so the expected level of use belongs in any comparison between a [revolving credit facility](https://mortgagelane.com/definitions/4#def-revolving-credit-facility) and separate loans. Compare it with the [arrangement fee](https://mortgagelane.com/definitions/4#def-product-fee) on the limit and the interest on each [drawdown](https://mortgagelane.com/definitions/2#def-drawdown). — Used on · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · [Revolving credit facilities](https://mortgagelane.com/guides/bridging-loan-guide/revolving-credit-facilities) · [What does a bridging loan cost?](https://mortgagelane.com/guides/bridging-loan-guide/what-does-a-bridging-loan-cost) - [Notice to complete](https://mortgagelane.com/definitions/3#def-notice-to-complete)Residential — A formal notice that one party to a property contract serves on the other after a missed completion date, requiring completion within a fixed period. Under the Standard Conditions of Sale used in England and Wales the period is ten working days.Notice to complete: Full definition · used on 5 pagesUnder the Law Society's Standard Conditions of Sale (Fifth Edition, 2018 Revision), a party who is ready, able and willing to complete can serve a notice to complete once the time for completion on the completion date has passed. The parties must then complete within ten working days, not counting the day the notice is given, and time is of the essence, so the deadline is strict. A buyer who paid a deposit of less than 10% must pay the balance up to 10% when the notice arrives ([Law Society: Standard Conditions of Sale](https://www.lawsociety.org.uk/topics/property/standard-conditions-of-sale)).If the buyer fails to complete in time, the seller can rescind the contract, forfeit the deposit, resell and claim damages. Until completion, a buyer in default also pays compensation at the contract rate on the price less the deposit; unless the contract sets another rate, the contract rate is the Law Society's interest rate ([Law Society: interest rate](https://www.lawsociety.org.uk/topics/property/law-society-interest-rate)). Scotland and Northern Ireland contracts have their own terms on late payment. — Used on · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [New Build Mortgages \| Deposits, Incentives & Timing](https://mortgagelane.com/guides/residential/new-build-mortgages) · [Contractor mortgages](https://mortgagelane.com/guides/residential/contractor-mortgages) · [Fixed Term Contract Mortgage](https://mortgagelane.com/mortgages/fixed-term-contract-mortgages) · [Mortgage declined before completion](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-before-completion) - [Nursery mortgage](https://mortgagelane.com/definitions/3#def-nursery-mortgage)Commercial — A commercial mortgage secured against premises used for a nursery or childcare business.Nursery mortgage: Full definition · used on 1 pageA commercial mortgage secured against premises used for a nursery or childcare business.The lender considers the property, permitted use and the income supporting repayments. Requirements differ for an owner-operated nursery and a property let to a separate nursery operator. — Used on · [Nursery Mortgages](https://mortgagelane.com/insights/nursery-mortgages) - O7 terms - [Occupancy restriction](https://mortgagelane.com/definitions/3#def-occupancy-restriction)Planning and tenure — A condition or legal restriction limiting who can occupy a property or how it can be used.Occupancy restriction: Full definition · used on 43 pagesA condition or legal restriction limiting who can occupy a property or how it can be used.Examples include holiday-only use, seasonal occupation or an agricultural occupancy condition. The exact wording and legal basis affect mortgage eligibility and must be checked for the particular property. — Used on · [Acreage mortgage](https://mortgagelane.com/guides/rural-mortgages/acreage-mortgage) · [Agricultural Bridging Loans](https://mortgagelane.com/insights/agricultural-bridging-loan) · [Agricultural tie mortgage](https://mortgagelane.com/guides/rural-mortgages/agricultural-tie-mortgage) · [Commercial Mortgage for Boarding Kennels](https://mortgagelane.com/mortgages/boarding-kennels-mortgages) · [Country House Mortgages \| Land, Listed & Rural Homes](https://mortgagelane.com/mortgages/country-house-mortgages) · [Equestrian Land Mortgage](https://mortgagelane.com/mortgages/equestrian-land-mortgages) · [Holiday Let Mortgages](https://mortgagelane.com/mortgages/holiday-let-mortgages) · [Holiday Let Mortgages Restricted Occupancy](https://mortgagelane.com/insights/holiday-let-mortgage-restricted-occupancy) · [Holiday Let Mortgages With Restricted Occupancy](https://mortgagelane.com/guides/holiday-let-mortgages/restricted-occupancy) · [Rural Mortgages](https://mortgagelane.com/specialists/rural-mortgages) · [Rural home mortgage](https://mortgagelane.com/guides/rural-mortgages/rural-home-mortgage) · [Section 106 Mortgages, Discounted and Restricted Homes](https://mortgagelane.com/mortgages/section-106-mortgages) · and 31 more - [Occupation contract](https://mortgagelane.com/definitions/3#def-occupation-contract)Regulation — The agreement setting out a contract-holder’s rights and responsibilities when renting a home under the Renting Homes framework in Wales.Occupation contract: Full definition · used on 5 pagesThe agreement setting out a contract-holder’s rights and responsibilities when renting a home under the Renting Homes framework in Wales.This framework replaced most residential tenancy and licence arrangements in Wales from 1 December 2022. Standard and secure contracts have different rules; a standard contract may be fixed term or periodic.Sources: [Welsh Government: occupation contracts](https://www.gov.wales/standard-occupation-contracts-guidance-html). — Used on · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Mortgage for a Leasehold Flat](https://mortgagelane.com/mortgages/mortgage-for-leasehold-flat) · [Remortgage to Buy a Second Property, Buy to Let or Second Home](https://mortgagelane.com/mortgages/remortgage-to-buy-second-property) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) - [Off-plan mortgage](https://mortgagelane.com/definitions/3#def-off-plan-mortgage)Residential — A mortgage arranged for the purchase of a new home before its construction is complete.Off-plan mortgage: Full definition · used on 14 pagesBuying off-plan means committing to a property before it has been completed. The expected completion date and the mortgage offer’s expiry need to be considered together.[Read the off-plan mortgage guide](https://mortgagelane.com/guides/residential/mortgage-on-new-build-off-plan). MoneySavingExpert also explains [buying a new-build home](https://www.moneysavingexpert.com/mortgages/buying-a-new-build-home/). — Used on · [Mortgage on new build off plan](https://mortgagelane.com/guides/residential/mortgage-on-new-build-off-plan) · [New Build Mortgages \| Deposits, Incentives & Timing](https://mortgagelane.com/guides/residential/new-build-mortgages) · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Buy to Let Mortgages](https://mortgagelane.com/mortgages/buy-to-let-mortgages) · [Commercial Buy to Let Mortgages](https://mortgagelane.com/insights/commercial-buy-to-let-mortgages) · [Commercial Buy to Let Mortgages: detailed guide](https://mortgagelane.com/guides/insights-commercial-buy-to-let-mortgages-details) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [Investor Led mortgages](https://mortgagelane.com/guides/commercial-buy-to-let-mortgages/investor-led-mortgages) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [New Build Buy to Let Mortgages](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/new-build-buy-to-let-mortgages) · [Residential Development Finance](https://mortgagelane.com/short-term-finance/residential-development-finance) · and 2 more - [Offset mortgage](https://mortgagelane.com/definitions/3#def-offset-mortgage)Residential — A residential mortgage linked to a savings account with the same lender, where interest is charged on the mortgage balance less the savings balance. The savings reduce interest instead of earning it.Offset mortgage: Full definition · used on 16 pagesAn offset mortgage links a savings account to the mortgage and charges interest only on the difference between the two balances. The savings earn no interest of their own: the return is the mortgage interest they stop the borrower paying.Because that return is not interest, it is not taxed, which is what makes an offset worth more to a higher-rate taxpayer than a savings account paying the same headline percentage.The borrower usually elects whether the saving reduces the monthly payment or shortens the term. Offset products typically carry a small premium over the equivalent standard rate, so an offset pays when the interest saved exceeds that premium on the whole loan. — Used on · [Offset Mortgages](https://mortgagelane.com/mortgages/offset-mortgages) · [Barrister mortgage](https://mortgagelane.com/insights/barrister-mortgage) · [DSS HMO mortgage](https://mortgagelane.com/insights/dss-hmo-mortgage) · [Family Help Mortgages](https://mortgagelane.com/mortgages/family-help-mortgages) · [Fixed Term Mortgages](https://mortgagelane.com/mortgages/fixed-term-mortgages) · [Interest Only Residential Mortgages](https://mortgagelane.com/mortgages/interest-only-residential-mortgages) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgage Calculators](https://mortgagelane.com/calculators) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) · [Revolving credit facilities](https://mortgagelane.com/guides/bridging-loan-guide/revolving-credit-facilities) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) · and 4 more - [Offshore company mortgage](https://mortgagelane.com/definitions/3#def-offshore-company-mortgage)Specialist lending — Property finance where the borrowing company is incorporated outside the country in which the property is located.Offshore company mortgage: Full definition · used on 2 pagesProperty finance where the borrowing company is incorporated outside the country in which the property is located.For UK property, a lender must accept the company’s jurisdiction and ownership structure. Company documents, beneficial ownership checks and legal advice on borrowing and security are part of the assessment. — Used on · [UK Mortgages for Offshore Companies](https://mortgagelane.com/specialists/mortgages-for-offshore-companies) · [High Net Worth Mortgages](https://mortgagelane.com/specialists/high-net-worth-mortgages) - [Open market value](https://mortgagelane.com/definitions/3#def-open-market-value)Valuation — An estimate of the price a property would achieve in a market transaction under the assumptions stated in the valuation.Open market value: Full definition · used on 243 pagesAn estimate of the price a property would achieve in a market transaction under the assumptions stated in the valuation.A restricted marketing period or another special assumption can produce a different figure. The lender decides which valuation basis it accepts; it does not always use a fixed 90-day or 180-day figure. — Used on · [Assisted Living Mortgages](https://mortgagelane.com/guides/social-housing-mortgages/assisted-living-mortgages) · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Bridging Loans: How Much Can I Borrow? \| Gross vs Net](https://mortgagelane.com/short-term-finance/how-much-can-i-borrow) · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Business Bridging Loans](https://mortgagelane.com/short-term-finance/business-bridging-loans) · [Buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Guest House Mortgages](https://mortgagelane.com/insights/guest-house-mortgages) · [HMO Mortgage Valuations](https://mortgagelane.com/insights/hmo-mortgage-valuations) · and 231 more - [Own occupation (income protection)](https://mortgagelane.com/definitions/3#def-own-occupation)Insurance — An income protection definition that pays if illness or injury stops you doing your own job, even if you could do a different one.Own occupation (income protection): Full definition · used on 1 pageOwn occupation is the widest of the occupation definitions an [income protection](https://mortgagelane.com/definitions/3#def-income-protection) policy can use to decide whether a claim pays. The policy pays if illness or injury stops you doing your own job, the role you had just before you became unable to work, even if you could do a different one.Narrower definitions pay in fewer circumstances. Suited occupation pays only if you cannot do any job suited to your experience, and activities-based definitions, sometimes called activities of daily work, test whether you can carry out everyday work tasks and are the narrowest. Own occupation cover raises the premium, and some insurers offer only a narrower definition for manual or higher-risk jobs. The Financial Ombudsman Service explains how it applies these definitions to claims ([Financial Ombudsman Service: income protection insurance](https://www.financial-ombudsman.org.uk/businesses/resolving-complaint/complaints-deal/insurance/medical-insurance/income-protection-insurance)). — Used on · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) ## Talk it through with an adviser Twenty minutes on the phone is usually enough to tell you what is realistic. Published: 2026-10-01 Last reviewed: 2026-10-01 Source: https://mortgagelane.com/definitions/3