--- title: "Definitions: P to R" 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 P to R." url: "https://mortgagelane.com/definitions/4" site: "Mortgage Lane" date: "2026-10-01" reviewed: "2026-10-01" reading_time: "52 min" language: "en-GB" robots: "index,follow" --- # Definitions: P to R 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 P to R. ## 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](https://mortgagelane.com/definitions/3#dict-i) [J](https://mortgagelane.com/definitions/3#dict-j) [K](https://mortgagelane.com/definitions/3#dict-k) [L](https://mortgagelane.com/definitions/3#dict-l) [M](https://mortgagelane.com/definitions/3#dict-m) [N](https://mortgagelane.com/definitions/3#dict-n) [O](https://mortgagelane.com/definitions/3#dict-o) [P](#dict-p) [Q](#dict-q) [R](#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 4 of 5 [A–C](https://mortgagelane.com/definitions) [D–H](https://mortgagelane.com/definitions/2) [I–O](https://mortgagelane.com/definitions/3) P–R [S–W](https://mortgagelane.com/definitions/5) - P30 terms - [Part and part mortgage](https://mortgagelane.com/definitions/4#def-part-and-part-mortgage)Residential — A mortgage with both capital repayment and interest-only portions, requiring a plan to clear the interest-only balance.Part and part mortgage: Full definition · used on 21 pagesA mortgage with both capital repayment and interest-only portions, requiring a plan to clear the interest-only balance.Payments reduce the repayment portion over the agreed term. The interest-only capital remains due unless separately repaid, and the lender must accept the proposed repayment strategy.[Read about part and part mortgages](https://mortgagelane.com/mortgages/part-and-part-mortgages). — Used on · [Part and Part Mortgages \| Repayment & Interest-Only Split](https://mortgagelane.com/mortgages/part-and-part-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Country House Mortgages \| Land, Listed & Rural Homes](https://mortgagelane.com/mortgages/country-house-mortgages) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Interest Only Residential Mortgages](https://mortgagelane.com/mortgages/interest-only-residential-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) · [Mortgages for Celebrities \| Discreet High-Value Lending](https://mortgagelane.com/mortgages/mortgages-for-celebrities) · and 9 more - [Partnership agreement](https://mortgagelane.com/definitions/4#def-partnership-agreement)Lending and affordability — The agreement between partners, or between the members of an LLP, that sets out how profits, capital and decisions are shared, including each partner's profit-sharing ratio.Partnership agreement: Full definition · used on 3 pagesA partnership agreement records the terms on which the partners carry on the business: each partner's share of profits and losses, the capital each contributes, drawings, decision making and what happens when a partner joins or leaves. Where the partners have not agreed otherwise, the Partnership Act 1890 entitles them to share equally in the capital and profits ([legislation.gov.uk: Partnership Act 1890, section 24](https://www.legislation.gov.uk/ukpga/Vict/53-54/39/section/24)). A deed of admission records a new partner joining on stated terms, and an LLP agreement does the same job for the members of a [limited liability partnership](https://mortgagelane.com/definitions/3#def-limited-liability-partnership).For a mortgage, the agreement is the evidence of a partner's current share when it is new or has changed and no tax return yet shows it. Some lenders accept the agreement with an accountant's letter confirming the share, and others wait for a return under the new ratio. — Used on · [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) - [Partnership mortgage](https://mortgagelane.com/definitions/4#def-partnership-mortgage)Residential — A residential or buy to let mortgage in a partner's or LLP member's own name, where the lender assesses their share of the firm's taxable profit rather than the firm's total profit or their drawings.Partnership mortgage: Full definition · used on 9 pagesA partnership mortgage is an ordinary mortgage taken by an individual who is a partner in a partnership or a member of a [limited liability partnership](https://mortgagelane.com/definitions/3#def-limited-liability-partnership). The firm is not the borrower. Each partner pays tax on their share of the profits through Self Assessment ([GOV.UK: set up a business partnership](https://www.gov.uk/set-up-business-partnership)), and the partnership's tax return allocates the profit between the partners, so the share appears on the partner's own [tax calculation](https://mortgagelane.com/definitions/5#def-sa302) whether or not it was drawn. Lenders read that share, alongside the partnership accounts, as the partner's income.The share can be harder to evidence when it is new or has changed, for example after a promotion to equity partner or a change in the [partnership agreement](https://mortgagelane.com/definitions/4#def-partnership-agreement). Some lenders accept the current share on the agreement and an accountant's letter, and others wait for a tax return that shows it. An LLP member who meets the conditions for a [salaried member](https://mortgagelane.com/definitions/5#def-salaried-member) is taxed as an employee and is usually assessed on payslips instead. A mortgage on the partner's own home is a [regulated mortgage](https://mortgagelane.com/definitions/4#def-regulated-mortgage). — Used on · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-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) · [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) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Retained Profits Mortgages, Director Cash and Reserves Checks](https://mortgagelane.com/mortgages/retained-profits-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) - [Pay As You Earn (PAYE)](https://mortgagelane.com/definitions/4#def-pay-as-you-earn)Lending and affordability — HMRC's system for collecting Income Tax and National Insurance from employment: the employer deducts them from pay through payroll before the employee is paid.Pay As You Earn (PAYE): Full definition · used on 19 pagesAn employee's payslips, and the P60 an employer gives after each tax year showing the tax paid, are the usual income evidence for an employed applicant. A contractor employed through an [umbrella company](https://mortgagelane.com/definitions/5#def-umbrella-company) is also paid through PAYE. Income that is not taxed through PAYE, such as [self-employed profit](https://mortgagelane.com/definitions/3#def-net-profit), is evidenced in other ways, such as tax calculations and accounts. [GOV.UK: PAYE for employers](https://www.gov.uk/paye-for-employers). — Used on · [Contractor Mortgages](https://mortgagelane.com/mortgages/contractor-mortgages) · [Contractor mortgages](https://mortgagelane.com/guides/residential/contractor-mortgages) · [Fixed Term Contract Mortgage](https://mortgagelane.com/mortgages/fixed-term-contract-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) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-mortgages) · [Retained Profits Mortgages, Director Cash and Reserves Checks](https://mortgagelane.com/mortgages/retained-profits-mortgages) · [Barrister mortgage](https://mortgagelane.com/insights/barrister-mortgage) · [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) · [Buy to Let Mortgage Guide: detailed guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/guides-buy-to-let-mortgage-guide-details) · and 7 more - [Permitted development](https://mortgagelane.com/definitions/4#def-permitted-development)Planning and tenure — Development allowed by a grant of planning permission in legislation, subject to the relevant limits and conditions.Permitted development: Full definition · used on 22 pagesDevelopment allowed by a grant of planning permission in legislation, subject to the relevant limits and conditions.Some rights require prior approval before work begins. Article 4 directions can remove specified rights, and building regulations or listed building consent may still apply. Check the rules for the relevant UK nation and site. [GOV.UK planning guidance](https://www.gov.uk/guidance/when-is-permission-required). — Used on · [Barn Conversion Mortgages](https://mortgagelane.com/insights/barn-conversion-mortgages) · [Barn conversion mortgages England](https://mortgagelane.com/guides/barn-conversion-mortgages/england) · [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) · [Campsite Mortgage](https://mortgagelane.com/mortgages/campsite-mortgages) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [Remortgage for Home Improvements, Extensions and Lofts](https://mortgagelane.com/mortgages/remortgage-for-home-improvements) · [Residential Development Finance](https://mortgagelane.com/short-term-finance/residential-development-finance) · [Barn Conversion Mortgages: detailed guide](https://mortgagelane.com/guides/insights-barn-conversion-mortgages-details) · [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) · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · and 10 more - [Personal guarantee](https://mortgagelane.com/definitions/4#def-personal-guarantee)Buy-to-let — A contractual promise by a person to meet another borrower’s obligations if the borrower does not pay.Personal guarantee: Full definition · used on 48 pagesA contractual promise by a person to meet another borrower’s obligations if the borrower does not pay.A company director may give a guarantee for company borrowing. Its scope, limits and enforcement terms are set by the document and can expose personal assets despite the company’s limited liability. — Used on · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Buy to Let Mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) · [Buy to Let Mortgages](https://mortgagelane.com/mortgages/buy-to-let-mortgages) · [Campsite Mortgage](https://mortgagelane.com/mortgages/campsite-mortgages) · [Can a Bridging Loan Affect a Mortgage Application?](https://mortgagelane.com/short-term-finance/can-bridging-affect-mortgage-application) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Commercial Mortgage for Boarding Kennels](https://mortgagelane.com/mortgages/boarding-kennels-mortgages) · [Equitable charge bridging loans](https://mortgagelane.com/guides/bridging-loans/equitable-charge-bridging-loans) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [High Net Worth Mortgages](https://mortgagelane.com/specialists/high-net-worth-mortgages) · [High net worth mortgages through companies and trusts](https://mortgagelane.com/guides/mortgages-high-net-worth-mortgages/high-net-worth-mortgages-through-companies-and-trusts) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · and 36 more - [Portfolio landlord](https://mortgagelane.com/definitions/4#def-portfolio-landlord)Buy-to-let — A landlord with four or more mortgaged buy-to-let properties. The definition triggers a wider assessment of the whole portfolio, not only the property being financed.Portfolio landlord: Full definition · used on 60 pagesA portfolio landlord is a borrower with four or more mortgaged buy-to-let properties, counted across all lenders and including property held jointly. The threshold comes from Prudential Regulation Authority underwriting standards.Once a borrower crosses it, lenders assess the whole portfolio rather than the subject property alone. That normally means a portfolio schedule, a business plan or cash flow, and tests applied across every property: an aggregate loan-to-value cap, an aggregate rental coverage test, and often a limit on the borrower’s total exposure to that lender.A portfolio that passes on the subject property can still fail on the aggregate position, which is why lender selection changes at this point. — Used on · [85% LTV Mortgages](https://mortgagelane.com/mortgages/85-ltv-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Bridging Loan for an MUFB \| Multi-Unit Freehold Blocks](https://mortgagelane.com/short-term-finance/bridging-loan-for-an-mufb) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Buy to Let Mortgages vs Bridging Loans \| Which to Use](https://mortgagelane.com/short-term-finance/bridging-loans-vs-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) · [Commercial](https://mortgagelane.com/guides/property-portfolio-remortgage/commercial) · [Do portfolio remortgage lenders require extra documentation?](https://mortgagelane.com/guides/property-portfolio-remortgage/do-portfolio-remortgage-lenders-require-extra-documentation) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [Mortgages in Northern Ireland, Calculator and Co-Ownership](https://mortgagelane.com/mortgages/mortgages-northern-ireland) · and 48 more - [Portfolio mortgage](https://mortgagelane.com/definitions/4#def-portfolio-mortgage)Buy-to-let — Finance arranged for a landlord with several properties, either through separate mortgages or a facility covering multiple properties.Portfolio mortgage: Full definition · used on 43 pagesFinance arranged for a landlord with several properties, either through separate mortgages or a facility covering multiple properties.A borrower with four or more distinct mortgaged buy to let properties is a [portfolio landlord](https://mortgagelane.com/definitions/4#def-portfolio-landlord) under the Prudential Regulation Authority's underwriting standards, and banks and building societies lending to one look at the whole portfolio, its rent, borrowing, assets, liabilities, business plan and cash flows, as well as the property being financed ([Bank of England: SS13/16](https://www.bankofengland.co.uk/prudential-regulation/publication/2016/underwriting-standards-for-buy-to-let-mortgage-contracts-ss)). A facility secured on several properties can make each of them security for the whole debt ([cross-collateralisation](https://mortgagelane.com/definitions#def-cross-collateralisation)), so check which properties secure each loan and any conditions on selling or refinancing one of them. — Used on · [Can I get interest only on a portfolio mortgage?](https://mortgagelane.com/guides/property-portfolio-remortgage/can-i-get-interest-only-on-a-portfolio-mortgage) · [Can You Refinance Out of a Portfolio Loan?](https://mortgagelane.com/guides/property-portfolio-remortgage/can-you-refinance-out-of-a-portfolio-loan) · [Commercial](https://mortgagelane.com/guides/property-portfolio-remortgage/commercial) · [Do portfolio remortgage lenders require extra documentation?](https://mortgagelane.com/guides/property-portfolio-remortgage/do-portfolio-remortgage-lenders-require-extra-documentation) · [How does stress testing work on portfolios?](https://mortgagelane.com/guides/property-portfolio-remortgage/how-does-stress-testing-work-on-portfolios) · [Is a Portfolio Loan a Good Idea?](https://mortgagelane.com/guides/property-portfolio-remortgage/is-a-portfolio-loan-a-good-idea) · [Lending Factors for Property Portfolio Mortgages](https://mortgagelane.com/insights/lending-factors-for-property-portfolio-mortgages) · [Portfolio Mortgage: detailed guide](https://mortgagelane.com/guides/mortgages-property-portfolio-mortgages-details) · [Portfolio Mortgages, Portfolio Landlord Rules and Stress Tests](https://mortgagelane.com/mortgages/property-portfolio-mortgages) · [Portfolio Remortgages and Incorporation Relief](https://mortgagelane.com/guides/property-portfolio-remortgage/incorporation-relief-lender-approval) · [Portfolio mortgages for additional property purchases](https://mortgagelane.com/guides/property-portfolio-mortgages/portfolio-mortgages-for-additional-property-purchases) · [Portfolio mortgages for incorporation](https://mortgagelane.com/guides/property-portfolio-mortgages/portfolio-mortgages-for-incorporation) · and 31 more - [Porting](https://mortgagelane.com/definitions/4#def-porting)Residential — Moving an existing mortgage deal to a new property when moving home, so the current rate and terms continue on the existing balance, subject to the lender's approval.Porting: Full definition · used on 2 pagesPorting is treated as a new application, so the borrower must meet the lender's affordability checks and the new property must be acceptable security. Often only the existing balance stays on the current fixed or discounted deal, and any extra borrowing goes on a separate deal with its own fees and charges. Where the new mortgage is smaller, the part repaid may attract an [early repayment charge](https://mortgagelane.com/definitions/2#def-early-repayment-charge). See [fixed term mortgages](https://mortgagelane.com/mortgages/fixed-term-mortgages). — Used on · [Fixed Term Mortgages](https://mortgagelane.com/mortgages/fixed-term-mortgages) · [Mortgage Network](https://mortgagelane.com/insights/join-mortgage-lane-mortgage-network-for-brokers) - [Potentially exempt transfer (PET)](https://mortgagelane.com/definitions/4#def-potentially-exempt-transfer)Regulation — A lifetime gift from one individual to another that is free of Inheritance Tax when it is made and becomes fully exempt if the giver lives for seven years afterwards.Potentially exempt transfer (PET): Full definition · used on 7 pagesMost outright gifts between individuals, such as money given towards a child's house deposit, are potentially exempt transfers under section 3A of the Inheritance Tax Act 1984. No tax is due when the gift is made. If the giver lives for seven years, the gift is exempt and no longer counts towards their estate. If the giver dies within seven years, the gift becomes chargeable and is set against the giver's nil-rate band (£325,000, fixed until 5 April 2031, or more where a late spouse's or civil partner's unused band is transferred) before the rest of the estate, although it does not use the residence nil-rate band.Tax is due on the gift itself only where the gifts in the seven years before the death exceed the nil-rate band. Taper relief then reduces the 40% rate to 32%, 24%, 16% or 8% for gifts made three to seven years before the death, and the person who received the gift pays. The £3,000 annual exemption, with one unused year carried forward, and the wedding and civil partnership exemptions take part of a gift out of the calculation at once. A gift the giver keeps benefiting from is a gift with reservation and is treated differently. See [Inheritance Tax](https://mortgagelane.com/definitions/3#def-inheritance-tax) and [gifted deposit](https://mortgagelane.com/definitions/2#def-gifted-deposit), and [gov.uk: rules on giving gifts](https://www.gov.uk/inheritance-tax/gifts). — 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) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Family Help Mortgages](https://mortgagelane.com/mortgages/family-help-mortgages) · [How to Secure the Best Semi-Commercial Mortgage Rates](https://mortgagelane.com/insights/how-to-secure-the-best-semi-commercial-mortgage-rates) · [JBSP Mortgages, Joint Borrower Sole Proprietor](https://mortgagelane.com/mortgages/jbsp-mortgages) · [Lodger Mortgage](https://mortgagelane.com/insights/lodger-mortgage) - [PRA supervisory statement SS13/16](https://mortgagelane.com/definitions/4#def-supervisory-statement-ss13-16)Buy-to-let — The Prudential Regulation Authority's underwriting standards for buy-to-let mortgages, which set how lenders test rent against interest at a stressed rate, when personal income can support the rent, and how portfolio landlords are assessed.PRA supervisory statement SS13/16: Full definition · used on 42 pagesSS13/16 expects lenders regulated by the [Prudential Regulation Authority](https://mortgagelane.com/definitions/4#def-prudential-regulation-authority) to assess buy-to-let affordability with an [interest coverage ratio](https://mortgagelane.com/definitions/3#def-interest-coverage-ratio) test, the expected rent divided by the interest at a rate that allows for likely future increases, or with an income affordability test, and it lets personal income supplement the rent. The future-rate assumption does not apply where the rate is fixed or capped for five years or more.It also treats a borrower with four or more mortgaged buy-to-let properties as a [portfolio landlord](https://mortgagelane.com/definitions/4#def-portfolio-landlord), whose whole portfolio is assessed. Each lender sets its own coverage ratio and stress rate within the statement. The text in force is published by the [Bank of England](https://www.bankofengland.co.uk/prudential-regulation/publication/2016/underwriting-standards-for-buy-to-let-mortgage-contracts-ss). — Used on · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-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) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Fixed Term Mortgages](https://mortgagelane.com/mortgages/fixed-term-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 for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Mortgages With Decreasing Profits, Self-Employed Income Falls](https://mortgagelane.com/mortgages/mortgages-with-decreasing-profits) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [Mortgages with Missed Payments, Late Payments and Arrears](https://mortgagelane.com/mortgages/mortgages-with-missed-payments) · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-mortgages) · and 30 more - [Pre-let](https://mortgagelane.com/definitions/4#def-pre-let)Development finance — A letting agreed with an occupier before or during a development, so the finished building has a tenant in place. On a commercial scheme the lease terms feed the valuation of the completed building.Pre-let: Full definition · used on 4 pagesRICS development valuation guidance treats pre-lets and pre-sales together: lettings or sales agreed by the developer before or during the development. A commercial scheme's [gross development value](https://mortgagelane.com/definitions/2#def-gross-development-value) is an investment value of the rent the finished building will earn, so a pre-let gives the valuer an agreed rent and tenant to work from. On the cases we arrange, a speculative scheme with no pre-let takes the same LTGDV percentage. — Used on · [Ground Up Development Finance](https://mortgagelane.com/short-term-finance/ground-up-development-finance) · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-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) - [Prefabricated reinforced concrete (PRC)](https://mortgagelane.com/definitions/4#def-prefabricated-reinforced-concrete)Valuation — A way of building houses from factory-made reinforced concrete sections, used widely after the Second World War. Several PRC house types were designated defective, and lenders treat PRC as non-standard construction, often lending only where a recognised repair has been carried out.Prefabricated reinforced concrete (PRC): Full definition · used on 10 pagesMany PRC homes were built after the Second World War, when traditional materials and skilled labour were scarce. In the early 1980s defects in design and construction were found in a number of system-built homes, and several PRC types, such as Airey, Cornish Unit, Orlit, Reema, Wates and Woolaway, were [designated defective](https://mortgagelane.com/definitions/2#def-designated-defective-housing).Repairs are carried out under a recognised scheme: many earlier repairs were certified by PRC Homes Ltd, an NHBC subsidiary, and BRE runs a repair scheme with a register of repaired homes for lenders. Unrepaired PRC is declined by almost every lender that publishes a policy, and lenders that consider repaired PRC usually want the repair certificate and, at some, the adjoining homes repaired too. See [PRC construction mortgages](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/prc-construction-mortgage) and [non-standard construction mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages). — 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) · [PRC construction mortgage](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/prc-construction-mortgage) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Buy to Let Mortgage Guide: detailed guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/guides-buy-to-let-mortgage-guide-details) · [Buy to Let Mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) · [Expat mortgage non standard construction](https://mortgagelane.com/guides/expat-mortgages/non-standard-construction) · [Mortgage on an Ex-Council Flat](https://mortgagelane.com/mortgages/mortgage-on-an-ex-council-flat) · [Specialist build types mortgage for foreign nationals](https://mortgagelane.com/guides/mortgages-for-foreign-nationals/specialist-build-types-mortgage-for-foreign-nationals) - [Prime postcode mortgage](https://mortgagelane.com/definitions/4#def-prime-postcode-mortgage)Specialist lending — A mortgage on a high-value home in a sought-after location, often assessed by a specialist lending team.Prime postcode mortgage: Full definition · used on 19 pagesA mortgage on a high-value home in a sought-after location, often assessed by a specialist lending team.A sought-after location does not remove affordability or valuation checks. Large loans, limited comparable sales and overseas income may require individual assessment.[Read about prime postcode mortgages](https://mortgagelane.com/mortgages/prime-postcode-mortgages). — Used on · [Prime Postcode Mortgages \| High-Value Home Lending](https://mortgagelane.com/mortgages/prime-postcode-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Country House Mortgages \| Land, Listed & Rural Homes](https://mortgagelane.com/mortgages/country-house-mortgages) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-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) · [Mortgages for Celebrities \| Discreet High-Value Lending](https://mortgagelane.com/mortgages/mortgages-for-celebrities) · [Portfolio Mortgages, Portfolio Landlord Rules and Stress Tests](https://mortgagelane.com/mortgages/property-portfolio-mortgages) · and 7 more - [Private bank mortgage](https://mortgagelane.com/definitions/4#def-private-bank-mortgage)Specialist lending — A mortgage provided by a private bank, often assessed alongside the borrower’s wider assets, income and banking relationship.Private bank mortgage: Full definition · used on 31 pagesA mortgage provided by a private bank, often assessed alongside the borrower’s wider assets, income and banking relationship.The bank sets its own eligibility and repayment requirements. A private-bank mortgage is different from a property loan made by a private individual; the phrase private mortgage can refer to either, so identify the actual lender and agreement. — Used on · [Large mortgages and high net worth lending](https://mortgagelane.com/guides/private-bank-mortgages/large-mortgages-and-high-net-worth-lending) · [Mansion Mortgages](https://mortgagelane.com/insights/mansion-mortgages) · [Mortgage loans from private individuals](https://mortgagelane.com/guides/private-bank-mortgages/mortgage-loans-from-private-individuals) · [Mortgage to build a mansion (self-build)](https://mortgagelane.com/guides/mansion-mortgages/mortgage-to-build-a-mansion-self-build) · [Private Mortgages](https://mortgagelane.com/specialists/private-bank-mortgages) · [Private Mortgages: detailed guide](https://mortgagelane.com/guides/specialists-private-bank-mortgages-details) · [Private bank mortgages](https://mortgagelane.com/guides/private-bank-mortgages/private-bank-mortgages) · [Private home loans and private home financing](https://mortgagelane.com/guides/private-bank-mortgages/private-home-loans-and-private-home-financing) · [Private mortgage lenders and private mortgage companies](https://mortgagelane.com/guides/private-bank-mortgages/private-mortgage-lenders-and-private-mortgage-companies) · [Smallholding mortgages](https://mortgagelane.com/insights/smallholding-mortgages) · [Expat Mortgage Guide](https://mortgagelane.com/guides/expat-mortgage-guide) · [Expat and foreign national high net worth mortgages](https://mortgagelane.com/guides/mortgages-high-net-worth-mortgages/expat-and-foreign-national-high-net-worth-mortgages) · and 19 more - [Private residential tenancy (PRT)](https://mortgagelane.com/definitions/4#def-private-residential-tenancy)Regulation — The open-ended tenancy used for most new private lets in Scotland since 1 December 2017, under the Private Housing (Tenancies) (Scotland) Act 2016.Private residential tenancy (PRT): Full definition · used on 8 pagesThe open-ended tenancy used for most new private lets in Scotland since 1 December 2017, under the Private Housing (Tenancies) (Scotland) Act 2016.A private residential tenancy has no fixed term, so a landlord cannot end it simply because a fixed period has passed. England and Wales have different tenancy systems.Sources: [Scottish Government: private residential tenancy](https://www.gov.scot/policies/private-renting/private-tenancy-reform/). — Used on · [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) · [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) · [Remortgage to Buy a Second Property, Buy to Let or Second Home](https://mortgagelane.com/mortgages/remortgage-to-buy-second-property) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Mortgages in Scotland for foreigners](https://mortgagelane.com/guides/buy-to-let-mortgage-scotland/mortgages-in-scotland-for-foreigners) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) - [Probate loan](https://mortgagelane.com/definitions/4#def-probate-loan)Specialist lending — Short-term finance against an estate before it is wound up: an executor loan to pay Inheritance Tax or costs before the grant, an inheritance advance to a beneficiary, or a bridging loan on estate property after the grant.Probate loan: Full definition · used on 6 pagesA probate loan lets the people dealing with an estate, or someone who will inherit from it, use its value before the assets are collected and distributed. An executor loan is made to the personal representatives, usually to pay the [Inheritance Tax](https://mortgagelane.com/definitions/3#def-inheritance-tax) that has to be paid before the [grant](https://mortgagelane.com/definitions/2#def-grant-of-probate), and the estate repays it from the first assets sold. An inheritance advance pays a beneficiary part of their expected share early: some providers buy that part of the share, so there is nothing to repay, and others lend against it. A probate [bridging loan](https://mortgagelane.com/definitions#def-bridging-loan) is secured on estate property once the grant is issued and is repaid on sale or refinance.Which FCA rules apply depends on the borrower and the security. Credit to individuals can be regulated consumer credit, and a loan to an individual secured on a home is normally a [regulated mortgage contract](https://mortgagelane.com/definitions/4#def-regulated-mortgage), whoever lives there, unless it is a business loan on a property no borrower or close relative will live in. Providers generally present an advance written as a purchase of part of a share as a sale and not a loan, though an agreement that makes the beneficiary repay a shortfall can be credit. HMRC's [Direct Payment Scheme](https://mortgagelane.com/definitions/2#def-direct-payment-scheme) and the instalment option on property can reduce or remove the need to borrow. — Used on · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Probate Loans, Executor Loans and Inheritance Advances](https://mortgagelane.com/mortgages/probate-loans) · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Mortgage Calculators](https://mortgagelane.com/calculators) · [Regulated Buy to Let Mortgages, Family and Consumer Buy to Let](https://mortgagelane.com/mortgages/regulated-buy-to-let-mortgages) · [SSAS and SIPP Mortgages, Pension Commercial Property Loans](https://mortgagelane.com/mortgages/ssas-sipp-mortgages) - [Product fee](https://mortgagelane.com/definitions/4#def-product-fee)Fees and charges — A charge associated with taking out a particular mortgage product.Product fee: Full definition · used on 73 pagesA charge associated with taking out a particular mortgage product.Lenders may use terms such as arrangement, booking or completion fee, but those charges are not always interchangeable. Check when each fee is payable, whether it is refundable and whether adding it to the loan incurs interest. Compare the fee and rate together over the relevant period. — Used on · [Bridging Loans: How Much Can I Borrow? \| Gross vs Net](https://mortgagelane.com/short-term-finance/how-much-can-i-borrow) · [Buy to Let Mortgages vs Bridging Loans \| Which to Use](https://mortgagelane.com/short-term-finance/bridging-loans-vs-mortgages) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [HELOC: Home Equity Line of Credit in the UK](https://mortgagelane.com/guides/alternatives-to-bridging-loans/heloc) · [How to do a true cost calculation on a mortgage](https://mortgagelane.com/guides/what-are-product-fees-on-mortgages/how-to-do-a-true-cost-calculation-on-a-mortgage) · [Mortgage Product Fee](https://mortgagelane.com/insights/what-are-product-fees-on-mortgages) · [Mortgage Product Fee: detailed guide](https://mortgagelane.com/guides/insights-what-are-product-fees-on-mortgages-details) · [Re-Bridging Loans, What Is Re-Bridging and Bridging Extensions](https://mortgagelane.com/short-term-finance/re-bridging-loans) · [Remortgage for Home Improvements, Extensions and Lofts](https://mortgagelane.com/mortgages/remortgage-for-home-improvements) · [Remortgage with Bad Credit, Product Transfer or Switch](https://mortgagelane.com/mortgages/remortgage-with-bad-credit) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) · and 61 more - [Product transfer](https://mortgagelane.com/definitions/4#def-product-transfer)Residential — Moving to a new mortgage deal with the existing lender, on the same property, instead of remortgaging to a different lender.Product transfer: Full definition · used on 37 pagesA product transfer is usually simpler than a [remortgage](https://mortgagelane.com/definitions/4#def-remortgage): where there is no additional borrowing and no change to the terms likely to matter for affordability, the FCA's affordability rule does not apply, so the lender does not have to reassess it, and many lenders need no new valuation or legal work. It compares only that lender's own range, so it is weighed against what a remortgage would offer.Where more is borrowed, or something material to affordability changes, the lender assesses the case in the usual way. — 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) · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [DSS HMO mortgage](https://mortgagelane.com/insights/dss-hmo-mortgage) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [Fixed Term Contract Mortgage](https://mortgagelane.com/mortgages/fixed-term-contract-mortgages) · [Fixed Term Mortgages](https://mortgagelane.com/mortgages/fixed-term-mortgages) · [HMO Mortgage No Experience](https://mortgagelane.com/insights/hmo-mortgage-no-experience) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · and 25 more - [Professional Consultant Certificate (PCC)](https://mortgagelane.com/definitions/4#def-professional-consultant-certificate)Valuation — A certificate from a qualified professional, such as an architect or surveyor, who inspected a new or converted home at stages during the build, confirming its progress and conformity with the approved drawings. Some lenders accept one as build assurance for a mortgage.Professional Consultant Certificate (PCC): Full definition · used on 14 pagesOn the standard form published by UK Finance, the consultant confirms they visited the site at appropriate stages from the start of construction to check progress and conformity with drawings approved under the building regulations, that they have experience of designing or monitoring residential construction or conversion, and that they remain liable for six years from the date of the certificate. The first buyer and the mortgage lender rely on it.It is one of the forms of build assurance a lender may consider for a newly built or converted home, alongside a [new build warranty](https://mortgagelane.com/definitions/3#def-new-build-warranty). Whether a lender accepts one, and on what terms, varies by lender. [UK Finance: Professional Consultant's Certificate (England and Wales)](https://www.ukfinance.org.uk/system/files/2025-01/Professional%20Consultant's%20Certificate%20-%20England%20and%20Wales.pdf). — Used on · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · [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) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) · [Hybrid valuation](https://mortgagelane.com/guides/hmo-mortgages/hybrid-valuation) · [MUFB Mortgages](https://mortgagelane.com/mortgages/mufb-mortgage) · [MUFB Mortgages: detailed guide](https://mortgagelane.com/guides/mortgages-mufb-mortgage-details) · [Mortgage for a completed barn conversion](https://mortgagelane.com/guides/barn-conversion-mortgages/mortgage-for-a-completed-barn-conversion) · [New Build Buy to Let Mortgages](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/new-build-buy-to-let-mortgages) · [New Build Mortgages \| Deposits, Incentives & Timing](https://mortgagelane.com/guides/residential/new-build-mortgages) · and 2 more - [Professional mortgage](https://mortgagelane.com/definitions/4#def-professional-mortgage)Residential — A residential mortgage assessed under a lender's criteria for people in listed professions, which can allow a higher income multiple or more flexible evidence of income than its standard rules.Professional mortgage: Full definition · used on 7 pagesSome lenders keep a list of professions, which can include medicine, law, accountancy, teaching and other careers with a recognised qualification or registration, and apply different criteria to applicants on it. The differences are usually in how much the lender will lend against income, the evidence it accepts and how it treats an early career stage, such as a first contract, a training post, a pupillage or locum work. In Mortgage Lane's experience lenders lend up to 5 times income as standard and up to 6 times for professionals and specialist products, subject to [affordability](https://mortgagelane.com/definitions#def-affordability).The mortgage itself is an ordinary [residential mortgage](https://mortgagelane.com/definitions/4#def-residential-mortgage), priced on the [loan-to-value](https://mortgagelane.com/definitions/3#def-loan-to-value) like any other. Each lender sets its own list of professions, the qualification it wants to see, any minimum income and the maximum loan, so the same applicant can be treated as a professional by one lender and assessed on standard criteria by another. Lending at 4.5 times income or more also counts towards the Bank of England's limit on high [loan to income](https://mortgagelane.com/definitions/3#def-loan-to-income) mortgages ([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 · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-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) · [Mortgage Calculators](https://mortgagelane.com/calculators) · [Mortgage for 50k Salary](https://mortgagelane.com/insights/mortgage-for-50k-salary) - [Profit on cost (POC)](https://mortgagelane.com/definitions/4#def-profit-on-cost)Development finance — A development's expected profit as a percentage of its total cost: the gross development value less all costs, divided by those costs.Profit on cost (POC): Full definition · used on 8 pagesProfit on cost compares what a scheme should make with what it costs to deliver, counting land, build, professional fees, contingency and finance costs. As an illustration, a scheme with a gross development value of £2,400,000 and total costs of £1,900,000 makes a profit of £500,000, a profit on cost of about 26.3%.Development lenders look at it alongside the loan to cost and loan to GDV caps. The minimum a lender wants, if any, varies by lender and structure; in our experience joint venture funding often sets no minimum. — Used on · [Development Finance For First Time Developers](https://mortgagelane.com/insights/development-finance-first-time-developers) · [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) · [Residential Development Finance](https://mortgagelane.com/short-term-finance/residential-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) · [How much can I borrow on land?](https://mortgagelane.com/guides/land-bridging-loans/how-much-can-i-borrow-on-land) · [Minimum income for a hotel development loan?](https://mortgagelane.com/guides/mezzanine-finance/minimum-income-for-a-hotel-development-loan) · [What is the best way to borrow money to buy land?](https://mortgagelane.com/guides/land-bridging-loans/what-is-the-best-way-to-borrow-money-to-buy-land) - [Profits method valuation](https://mortgagelane.com/definitions/4#def-profits-method-valuation)Valuation — A way of valuing trade related property, such as a hotel or pub, from the profit a reasonably efficient operator could make there, capitalised at a rate of return that reflects the risk.Profits method valuation: Full definition · used on 2 pagesRICS guidance VPGA 4 sets out the steps. The valuer assesses the fair maintainable turnover (FMT) a reasonably efficient operator (REO) would expect to achieve with the property properly equipped, repaired, maintained and decorated, then the fair maintainable operating profit (FMOP) that operator would expect from it, after all its costs and an annual allowance for decoration, refurbishment and renewing the trade inventory. The FMOP is capitalised at a rate of return checked against comparable transactions. Where a new operator would improve the trade by works, the cost of those works and an allowance for the delay in reaching the FMT are deducted, as is the cost of any repairs and decoration needed to reach it. Personal goodwill, the profit that depends on the current operator alone, is excluded ([RICS Valuation Global Standards](https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/red-book/red-book-global)).For a trading property the result is reported as market value as a fully equipped operational entity having regard to trading potential, the basis of a [going concern valuation](https://mortgagelane.com/definitions/2#def-going-concern-valuation). A lender often asks for a second figure on the assumption that trade has ceased, often called the [vacant possession](https://mortgagelane.com/definitions/5#def-vacant-possession) value. — Used on · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) - [Property flip finance](https://mortgagelane.com/definitions/4#def-property-flip-finance)Bridging finance — Short-term property funding for a purchase, refurbishment and resale, with the sale proceeds intended to repay the debt.Property flip finance: Full definition · used on 1 pageShort-term property funding for a purchase, refurbishment and resale, with the sale proceeds intended to repay the debt.The expected resale price must cover the purchase, works, taxes, borrowing costs and selling costs. A delay or cost overrun reduces the margin and may leave a repayment shortfall.[Read about short term loans for flipping houses](https://mortgagelane.com/short-term-finance/bridging-finance-for-flipping-houses). — Used on · [Bridging Loans for Flipping Houses \| Buy, Refurb, Sell](https://mortgagelane.com/short-term-finance/bridging-finance-for-flipping-houses) - [Property schedule](https://mortgagelane.com/definitions/4#def-property-schedule)Buy-to-let — A list of every property a landlord owns, with its value, mortgage, lender, monthly payment and rent, which lenders use to assess a portfolio as a whole.Property schedule: Full definition · used on 4 pagesA property schedule sets out, for each property, the address, how it is owned (alone, jointly or through a company), its estimated value, the outstanding mortgage, the lender, the monthly payment, the rent and the tenancy. Lenders use it to work out the aggregate [loan to value](https://mortgagelane.com/definitions/3#def-loan-to-value) and the rental cover across the portfolio, and the number of mortgaged properties on it can be checked against credit reference data.The Prudential Regulation Authority's buy to let underwriting standards list the borrower's full portfolio of properties and outstanding mortgages among the information a lender may ask a [portfolio landlord](https://mortgagelane.com/definitions/4#def-portfolio-landlord) for, together with assets and liabilities, a business plan and the cash flows of every property ([Bank of England: SS13/16](https://www.bankofengland.co.uk/prudential-regulation/publication/2016/underwriting-standards-for-buy-to-let-mortgage-contracts-ss)). Some lenders ask for the schedule on their own template. — Used on · [Portfolio Mortgages, Portfolio Landlord Rules and Stress Tests](https://mortgagelane.com/mortgages/property-portfolio-mortgages) · [Portfolio mortgages for portfolio landlords](https://mortgagelane.com/guides/property-portfolio-mortgages/portfolio-mortgages-for-portfolio-landlords) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) · [Title Split MUFB](https://mortgagelane.com/case-studies/title-split-mufb) - [Protected trust deed](https://mortgagelane.com/definitions/4#def-protected-trust-deed)Lending and affordability — A legally binding agreement in Scotland between a person and their creditors to pay all or some of what they owe, which becomes protected when enough creditors accept it.Protected trust deed: Full definition · used on 9 pagesA trust deed is Scotland's comparable route to an [individual voluntary arrangement](https://mortgagelane.com/definitions/3#def-individual-voluntary-arrangement), which is not available in Scotland. It covers unsecured debts such as credit cards and personal loans. Once the trust deed is protected, creditors cannot chase the debtor, add interest or take court action, and the trust deed must be protected for the remaining debts to be written off at the end ([mygov.scot: what is a trust deed](https://www.mygov.scot/what-is-trust-deed)).Payments usually run for four years, and the credit rating is affected for six years from the date the trust deed begins. The home may have to be included, with only the debtor's share of the equity counted on a jointly owned home, unless the trustee agrees before signing that it is left out. Protected trust deeds are listed on Scotland's Register of Insolvencies. Lenders treat a current or past trust deed as [adverse credit](https://mortgagelane.com/definitions#def-adverse-credit). — Used on · [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) · [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) · [Mortgages After Bankruptcy, Discharged Bankrupts and DROs](https://mortgagelane.com/mortgages/bankruptcy-mortgages) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [Remortgage with Bad Credit, Product Transfer or Switch](https://mortgagelane.com/mortgages/remortgage-with-bad-credit) · [SSAS and SIPP Mortgages, Pension Commercial Property Loans](https://mortgagelane.com/mortgages/ssas-sipp-mortgages) - [Protection insurance](https://mortgagelane.com/definitions/4#def-protection-insurance)Insurance — Insurance that pays a lump sum or a regular income if the person covered dies, is diagnosed with a specified serious illness or cannot work because of illness or injury. It protects people and their income rather than property.Protection insurance: Full definition · used on 7 pagesThe main types are term [life insurance](https://mortgagelane.com/definitions/3#def-life-insurance), paid if the person covered dies within the term; [family income benefit](https://mortgagelane.com/definitions/2#def-family-income-benefit), life cover paying a regular income to the end of the term instead of a lump sum; [critical illness cover](https://mortgagelane.com/definitions#def-critical-illness-cover), paid on diagnosis of a condition that meets the policy definition; and [income protection](https://mortgagelane.com/definitions/3#def-income-protection), a monthly benefit while illness or injury stops you working. A business can insure a person it depends on with [key person insurance](https://mortgagelane.com/definitions/3#def-key-person-insurance). [Buildings and contents insurance](https://mortgagelane.com/definitions#def-buildings-and-contents-insurance) covers property rather than people and is general insurance.The FCA Handbook defines a pure protection contract as long-term insurance that pays only on death or incapacity due to injury, sickness or infirmity and has no surrender value, or none above a single premium ([FCA Handbook: pure protection contract](https://handbook.fca.org.uk/glossary/G935)). Advising on and arranging protection and general insurance is insurance distribution, regulated under the FCA's Insurance: Conduct of Business sourcebook (ICOBS), not the mortgage rules in [MCOB](https://mortgagelane.com/definitions/3#def-mcob). Before taking out or changing cover as a consumer, you have a [duty to take reasonable care](https://mortgagelane.com/definitions#def-consumer-insurance-disclosure) not to make a misrepresentation to the insurer ([Consumer Insurance (Disclosure and Representations) Act 2012, section 2](https://www.legislation.gov.uk/ukpga/2012/6/section/2)). A consumer or small business whose complaint is not resolved can take it to the [Financial Ombudsman Service](https://mortgagelane.com/definitions/2#def-financial-ombudsman-service). — Used on · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [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) · [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) - [Prudential Regulation Authority (PRA)](https://mortgagelane.com/definitions/4#def-prudential-regulation-authority)Regulation — The part of the Bank of England responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms.Prudential Regulation Authority (PRA): Full definition · used on 53 pagesPrudential regulation is about firms' financial safety, such as the capital they hold and how they manage risk, while the [FCA](https://mortgagelane.com/definitions/2#def-financial-conduct-authority) regulates how firms conduct their business. For property lending, the PRA's best-known rules are its buy-to-let underwriting standards in [SS13/16](https://mortgagelane.com/definitions/4#def-supervisory-statement-ss13-16). [Bank of England: Prudential Regulation Authority](https://www.bankofengland.co.uk/prudential-regulation). — Used on · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-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) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Fixed Term Contract Mortgage](https://mortgagelane.com/mortgages/fixed-term-contract-mortgages) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-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 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) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Mortgages After Bankruptcy, Discharged Bankrupts and DROs](https://mortgagelane.com/mortgages/bankruptcy-mortgages) · and 41 more - [Pub mortgage](https://mortgagelane.com/definitions/4#def-pub-mortgage)Commercial — A commercial mortgage used to buy or refinance premises used as a public house.Pub mortgage: Full definition · used on 17 pagesA commercial mortgage used to buy or refinance premises used as a public house.The lender considers whether the borrower operates the pub or lets it to an operator. Trading performance, lease income and the property’s valuation are assessed as applicable. A going-concern valuation and a property-only valuation measure different things. — Used on · [Freehold pub mortgage](https://mortgagelane.com/guides/pub-mortgage/freehold-pub-mortgage) · [Listed pub mortgages](https://mortgagelane.com/guides/pub-mortgage/listed-pub-mortgages) · [Non-trading pub mortgage](https://mortgagelane.com/guides/pub-mortgage/non-trading-pub-mortgage) · [Pub Mortgages](https://mortgagelane.com/insights/pub-mortgage) · [Pub Mortgages: detailed guide](https://mortgagelane.com/guides/insights-pub-mortgage-details) · [Pub mortgage England](https://mortgagelane.com/guides/pub-mortgage/england) · [Pub mortgage Scotland](https://mortgagelane.com/guides/pub-mortgage/scotland) · [Pub mortgage Wales](https://mortgagelane.com/guides/pub-mortgage/wales) · [Pub mortgages Northern Ireland](https://mortgagelane.com/guides/pub-mortgage/northern-ireland) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Commercial Mortgages: detailed guide](https://mortgagelane.com/guides/mortgages-commercial-mortgages-details) · and 5 more - [Purpose-built student accommodation (PBSA)](https://mortgagelane.com/definitions/4#def-purpose-built-student-accommodation)Commercial — Accommodation built specifically for students and valued as an operating asset on its stabilised income, rather than against residential comparables.Purpose-built student accommodation (PBSA): Full definition · used on 13 pagesPBSA is a commercial-style asset. Planning use is usually sui generis, value is the net operating income capitalised at a yield, and the letting model is either a nomination agreement with a university or a direct let to students.The asset runs on the academic year, so a scheme that misses the September intake has missed its income for twelve months. That timetable, more than the build programme, is what lenders underwrite.Development is funded on the commercial ceilings against investment value, and the exit is a refinance onto investment lending or a sale to an institutional buyer. — Used on · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · [Ground Up Development Finance](https://mortgagelane.com/short-term-finance/ground-up-development-finance) · [HMO Mortgages](https://mortgagelane.com/mortgages/hmo-mortgages) · [PBSA Finance, Purpose-Built Student Accommodation](https://mortgagelane.com/short-term-finance/pbsa-finance) · [PBSA mortgage](https://mortgagelane.com/guides/hmo-mortgages/pbsa-mortgage) · [Commercial mortgage for a block of flats](https://mortgagelane.com/guides/commercial-mortgage-guide/a-block-of-flats) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) · [HMO Mortgages for First Time Property Investors](https://mortgagelane.com/insights/hmo-mortgages-for-first-time-property-investors) · [HMO Mortgages: detailed guide](https://mortgagelane.com/guides/mortgages-hmo-mortgages-details) · [HMO expat mortgage](https://mortgagelane.com/guides/expat-buy-to-let-mortgage-uk/hmo-expat-mortgage) · [Mortgage Calculators](https://mortgagelane.com/calculators) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · and 1 more - Q3 terms - [Qualified Teacher Status (QTS)](https://mortgagelane.com/definitions/4#def-qualified-teacher-status)Specialist lending — The professional status that qualifies a teacher to teach in maintained schools in England and in Wales. Scotland and Northern Ireland register teachers through their own teaching councils.Qualified Teacher Status (QTS): Full definition · used on 1 pageIn England QTS is a legal requirement in maintained schools, and most teachers in academies and free schools hold it. Overseas-trained teachers can teach in most roles that need QTS for their first 4 years without it ([Department for Education: recruit teachers from overseas](https://www.gov.uk/guidance/recruit-teachers-from-overseas)). The [Children's Wellbeing and Schools Act 2026](https://www.legislation.gov.uk/ukpga/2026/21/section/53) allows the QTS and statutory induction requirements to be extended to academies, and the Department for Education has said they will apply in primary and secondary academies from 1 September 2027. A teacher in England must hold QTS before starting the two-year statutory induction as an early career teacher. In Wales a newly qualified teacher must hold QTS and register with the Education Workforce Council before induction. In Scotland teachers register with the General Teaching Council for Scotland, moving from provisional to full registration after probation, and in Northern Ireland with the General Teaching Council for Northern Ireland.For a mortgage, lenders whose professional criteria include teachers usually ask for evidence of QTS or the equivalent registration before applying their higher income multiple. See [professional mortgage](https://mortgagelane.com/definitions/4#def-professional-mortgage). — Used on · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) - [Qualifying loan interest relief](https://mortgagelane.com/definitions/4#def-qualifying-loan-interest-relief)Fees and charges — Income tax relief on interest an individual pays on a loan used for certain purposes, such as buying shares in or lending to a close company, or buying into a trading or professional partnership.Qualifying loan interest relief: Full definition · used on 1 pageQualifying loan interest relief is income tax relief on interest an individual pays on a loan used for a qualifying purpose, under Part 8, Chapter 1 of the Income Tax Act 2007. The purposes include buying ordinary shares in, or lending to, a [close company](https://mortgagelane.com/definitions#def-close-company) that is not a close investment-holding company, where the individual owns more than 5% of the ordinary share capital, on their own or with associates, or holds some shares and works for the greater part of their time in managing the company, and money lent is used wholly and exclusively for the company's business. They also include buying into a trading or professional partnership, or contributing capital to or lending to one for its business.The relief is claimed through Self Assessment and does not apply to overdrafts or credit cards. It counts towards the limit on certain income tax reliefs, the greater of £50,000 and 25% of adjusted total income in a tax year ([GOV.UK: HS340](https://www.gov.uk/government/publications/interest-and-alternative-finance-payments-eligible-for-relief-on-qualifying-loans-and-alternative-finance-arrangements-hs340-self-assessment-helpshee/hs340-interest-and-alternative-finance-payments-eligible-for-relief-on-qualifying-loans-and-alternative-finance-arrangements-2026)). Interest on borrowing used personally does not qualify. — Used on · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) - [Quantity surveyor (QS)](https://mortgagelane.com/definitions/4#def-quantity-surveyor)Development finance — A construction professional who estimates and controls the costs of a building project, working out the quantities and costs of materials, time and labour and monitoring spending at each stage.Quantity surveyor (QS): Full definition · used on 9 pagesOn a development loan the lender's own surveyor reviews the developer's costings and certifies the work before each drawdown: see [monitoring surveyor](https://mortgagelane.com/definitions/3#def-monitoring-surveyor). [National Careers Service: quantity surveyor](https://nationalcareers.service.gov.uk/job-profiles/quantity-surveyor). — Used on · [Development Finance For First Time Developers](https://mortgagelane.com/insights/development-finance-first-time-developers) · [Bridging loans for refurbishment finance](https://mortgagelane.com/guides/refurbishment-loans/bridging-loans-for-refurbishment-finance) · [Development finance for auction purchase](https://mortgagelane.com/guides/auction-property-loans/development-finance-for-auction-purchase) · [Mezzanine Finance](https://mortgagelane.com/short-term-finance/mezzanine-finance) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · [Refurbishment loans for auction properties](https://mortgagelane.com/guides/auction-property-loans/refurbishment-loans-for-auction-properties) · [Refurbishment loans up to 90% LTV](https://mortgagelane.com/guides/bridging-loans/refurbishment-loans-up-to-90-ltv) · [Renovation loans for auction purchase](https://mortgagelane.com/guides/auction-property-loans/renovation-loans-for-auction-purchase) · [Rural Mortgages](https://mortgagelane.com/specialists/rural-mortgages) - R26 terms - [Re-bridging](https://mortgagelane.com/definitions/4#def-re-bridging)Bridging finance — Refinancing an existing bridging loan with a new bridging loan on the same property, usually from a different lender, to give the original exit more time.Re-bridging: Full definition · used on 20 pagesRe-bridging moves the debt from one bridging loan to another when the planned exit, such as a sale, a refinance onto a term mortgage or the completion of works, has not happened by the end of the first loan's term. The new loan repays the existing lender's [redemption figure](https://mortgagelane.com/definitions/4#def-redemption-statement), including any [rolled-up interest](https://mortgagelane.com/definitions/4#def-rolled-up-interest), exit fee and extension or default charges, and adds its own arrangement fee, valuation, legal costs and interest, so the debt and the [loan to value](https://mortgagelane.com/definitions/3#def-loan-to-value) rise with each refinance.It differs from an extension, where the existing lender keeps the loan for longer, and from a [remortgage](https://mortgagelane.com/definitions/4#def-remortgage) onto a term mortgage, which is an exit from bridging. The new lender values the property and tests the [exit strategy](https://mortgagelane.com/definitions/2#def-exit-strategy) again. A re-bridge on a home lived in, or to be lived in, by the borrower or a related person, such as a spouse, partner, parent or child, is normally a [regulated mortgage contract](https://mortgagelane.com/definitions/4#def-regulated-mortgage), and where its term is 12 months or less the FCA's rules for regulated bridging loans apply ([FCA Handbook: MCOB 11.6](https://handbook.fca.org.uk/handbook/MCOB/11/6.html)). — Used on · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Business Bridging Loans](https://mortgagelane.com/short-term-finance/business-bridging-loans) · [Can a Bridging Loan Affect a Mortgage Application?](https://mortgagelane.com/short-term-finance/can-bridging-affect-mortgage-application) · [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) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) · [Bad Credit Bridging Loans \| Adverse Credit Accepted](https://mortgagelane.com/short-term-finance/bad-credit-bridging-loans) · [Bridging Loan Agreement in Principle \| Process & Criteria](https://mortgagelane.com/short-term-finance/agreement-in-principle) · [Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide) · [Bridging Loan for a Self-Build \| Plot Purchase & Gaps](https://mortgagelane.com/short-term-finance/for-a-self-build) · [Bridging Loan for an MUFB \| Multi-Unit Freehold Blocks](https://mortgagelane.com/short-term-finance/bridging-loan-for-an-mufb) · [Bridging Loans for Barn Conversions \| Class Q & Planning](https://mortgagelane.com/short-term-finance/bridging-finance-for-barn-conversions) · and 8 more - [Rebuild cost](https://mortgagelane.com/definitions/4#def-rebuild-cost)Insurance — The cost of demolishing a home, clearing the site and rebuilding it to current building regulations, including professional fees but not the land. It is the basis for the buildings sum insured.Rebuild cost: Full definition · used on 3 pagesRebuild cost, also called reinstatement cost, assumes a total loss: the building is demolished and rebuilt on the same site to a similar design. The [RICS](https://mortgagelane.com/definitions/4#def-royal-institution-of-chartered-surveyors) professional standard for reinstatement cost assessments builds the figure from a net rebuilding cost plus allowances for debris removal and demolition, professional fees, and changes needed to meet current Building Regulations, and says the figure for insurance purposes has no direct relationship to market value ([RICS: reinstatement cost assessment of buildings](https://www.rics.org/content/dam/ricsglobal/documents/standards/oct18_reinstatement_cost_assessment_of_buildings_3rd_edition.pdf)). The land is not included.A rebuild cost calculator gives an estimate for a standard home, while a listed, older or unusual home needs a surveyor's assessment. If the [buildings insurance](https://mortgagelane.com/definitions#def-buildings-and-contents-insurance) sum insured is below the rebuild cost, a policy with an average clause pays only the same proportion of each claim ([Financial Ombudsman Service: underinsurance in home insurance complaints](https://www.financial-ombudsman.org.uk/businesses/complaints-deal/insurance/home-buildings-insurance/underinsurance-home-insurance-complaints)). — Used on · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Converted Listed Churches and Chapels](https://mortgagelane.com/guides/mortgage-for-listed-buildings/converted-listed-churches-and-chapels) · [Mansion Mortgages](https://mortgagelane.com/insights/mansion-mortgages) - [Redemption statement](https://mortgagelane.com/definitions/4#def-redemption-statement)Lending and affordability — A lender's statement of the amount needed to repay a loan in full on a given date, including interest and any charges due on repayment.Redemption statement: Full definition · used on 11 pagesA redemption statement sets out the capital outstanding, the interest to the stated date and any fees or charges due on repayment, such as an [exit fee](https://mortgagelane.com/definitions/2#def-exit-fee), an [early repayment charge](https://mortgagelane.com/definitions/2#def-early-repayment-charge) or arrears and default charges. It is valid for the date shown, and many statements also give a daily amount to add for each day after it.A new lender or a buyer's solicitor relies on it to repay the old loan on completion, so it is the figure a refinance or a sale has to cover. On a [bridging loan](https://mortgagelane.com/definitions#def-bridging-loan) with interest rolled up, or with charges for running past the end date, the redemption figure can be well above the original advance. Where interest was retained at the start, the statement shows whether any unused part is credited back, which depends on the loan agreement. — Used on · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Bridging Loans for HMOs \| Buy, Convert & Refinance](https://mortgagelane.com/short-term-finance/bridging-finance-for-hmos) · [Bridging Loans: How Much Can I Borrow? \| Gross vs Net](https://mortgagelane.com/short-term-finance/how-much-can-i-borrow) · [Divorce Settlement Bridging Loans \| Buy Out or Settle Fast](https://mortgagelane.com/short-term-finance/divorce-settlement-bridging-loans) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Re-Bridging Loans, What Is Re-Bridging and Bridging Extensions](https://mortgagelane.com/short-term-finance/re-bridging-loans) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [Help to buy equity loan mortgage](https://mortgagelane.com/guides/residential/help-to-buy-equity-loan-mortgage) · [Owner-Occupied Bridge](https://mortgagelane.com/case-studies/residential-bridge-exit-london) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) · [What is a bridging loan?](https://mortgagelane.com/insights/what-is-a-bridging-loan) - [Refurbishment finance](https://mortgagelane.com/definitions/4#def-refurbishment-finance)Development finance — Finance for improving an existing property, from repairs and modernisation to more extensive renovation works.Refurbishment finance: Full definition · used on 51 pagesFinance for improving an existing property, from repairs and modernisation to more extensive renovation works.The scope of works determines whether a refurbishment bridge, development facility or another loan is suitable. Structural work, permissions, drawdown conditions and the planned exit affect the available funding. — Used on · [Agricultural Bridging Loans](https://mortgagelane.com/insights/agricultural-bridging-loan) · [Alternatives to bridging loans](https://mortgagelane.com/short-term-finance/alternatives-to-bridging-loans) · [Bridge to Let Refurbishment Loans](https://mortgagelane.com/guides/refurbishment-loans/bridge-to-let-refurbishment-loans) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Bridging Loans for Auction](https://mortgagelane.com/short-term-finance/auction-property-loans) · [Bridging loans for refurbishment finance](https://mortgagelane.com/guides/refurbishment-loans/bridging-loans-for-refurbishment-finance) · [Can I get a buy to renovate mortgage in the UK?](https://mortgagelane.com/guides/renovation-mortgages/can-i-get-a-buy-to-renovate-mortgage-in-the-uk) · [Can I get a purchase and renovation mortgage?](https://mortgagelane.com/guides/renovation-mortgages/can-i-get-a-purchase-and-renovation-mortgage) · [Can i use part of my mortgage loan for renovations?](https://mortgagelane.com/guides/renovation-mortgages/can-i-use-part-of-my-mortgage-loan-for-renovations) · [Commercial refurbishment loans](https://mortgagelane.com/guides/refurbishment-loans/commercial-refurbishment-loans) · [Development finance for refurbishment finance](https://mortgagelane.com/guides/refurbishment-loans/development-finance-for-refurbishment-finance) · [Further advances for refurbishment finance](https://mortgagelane.com/guides/refurbishment-loans/further-advances-for-refurbishment-finance) · and 39 more - [Regulated mortgage](https://mortgagelane.com/definitions/4#def-regulated-mortgage)Regulation — A mortgage contract that falls within the UK statutory definition of a regulated mortgage contract and the applicable FCA rules.Regulated mortgage: Full definition · used on 88 pagesA mortgage contract that falls within the UK statutory definition of a regulated mortgage contract and the applicable FCA rules.Under article 61 of the Regulated Activities Order, a contract is a regulated mortgage contract where a lender provides credit to an individual or to trustees, the obligation to repay is secured by a mortgage or charge on land in the UK, and at least 40% of that land is used, or intended to be used, as or in connection with a dwelling. Exclusions in article 61A take out some contracts that meet those tests, such as investment property loans, second charge business loans and some second charge bridging loans. In practice, lending secured on a home the borrower or a close relative lives in is regulated, while lending to a company, or for investment property, generally is not.Classification depends on the borrower, security, residential use and any statutory exclusion. It is not determined by the product’s name alone. Consumer buy-to-let is a separate framework. [FCA definition of a regulated mortgage contract](https://handbook.fca.org.uk/glossary/G1321); [article 61 of the Regulated Activities Order](https://www.legislation.gov.uk/uksi/2001/544/article/61). — Used on · [Agricultural Bridging Loans](https://mortgagelane.com/insights/agricultural-bridging-loan) · [Are Auction Loans regulated?](https://mortgagelane.com/guides/land-bridging-loans/are-auction-loans-regulated) · [Are residential mortgages for £50k income loans regulated?](https://mortgagelane.com/guides/mortgage-for-50k-salary/are-residential-mortgages-for-50k-income-loans-regulated) · [Are valuations regulated?](https://mortgagelane.com/guides/hmo-mortgage-valuations/are-valuations-regulated) · [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 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) · [Bridging Loan Agreement in Principle \| Process & Criteria](https://mortgagelane.com/short-term-finance/agreement-in-principle) · [Bridging Loan for a Self-Build \| Plot Purchase & Gaps](https://mortgagelane.com/short-term-finance/for-a-self-build) · [Bridging Loan for an MUFB \| Multi-Unit Freehold Blocks](https://mortgagelane.com/short-term-finance/bridging-loan-for-an-mufb) · [Bridging Loans for Barn Conversions \| Class Q & Planning](https://mortgagelane.com/short-term-finance/bridging-finance-for-barn-conversions) · and 76 more - [Related person (mortgage regulation)](https://mortgagelane.com/definitions/4#def-related-person)Regulation — In UK mortgage regulation, the borrower's spouse or civil partner, a person living with them as a couple, or their parent, brother, sister, child, grandparent or grandchild. Whether one of them lives in a mortgaged property can decide whether the loan is regulated.Related person (mortgage regulation): Full definition · used on 6 pagesThe definition is in article 61(4) of the Regulated Activities Order ([legislation.gov.uk: Regulated Activities Order, article 61](https://www.legislation.gov.uk/uksi/2001/544/article/61)). Where credit is provided to trustees, it applies to the relatives of a beneficiary of the trust. Aunts, uncles, cousins, nieces, nephews and in-laws are not related persons for this purpose.The term matters most in buy to let. A loan to an individual secured on property at least 40% used as a dwelling is a [regulated mortgage contract](https://mortgagelane.com/definitions/4#def-regulated-mortgage) unless an exclusion applies, and the investment property loan exclusion in article 61A needs less than 40% of the property to be used as a dwelling by the borrower or a related person. A [consumer buy to let](https://mortgagelane.com/definitions#def-consumer-buy-to-let-mortgage) contract also needs a property that neither of them lives in. So a mortgage on a home a related person lives in is regulated, which is the basis of [family buy to let](https://mortgagelane.com/definitions/2#def-family-buy-to-let). The tax rules use a different list: see [connected person](https://mortgagelane.com/definitions#def-connected-person). — Used on · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-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) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Remortgage to Buy a Second Property, Buy to Let or Second Home](https://mortgagelane.com/mortgages/remortgage-to-buy-second-property) - [Relevant life policy](https://mortgagelane.com/definitions/4#def-relevant-life-policy)Insurance — A life policy that an employer pays for on an individual director or employee, paying a lump sum to the person's family or other beneficiaries if they die in service.Relevant life policy: Full definition · used on 1 pageA relevant life policy is death-in-service cover for one director or employee, paid for by the employer. HMRC's guidance describes it as a policy paying a lump sum on the person's death before an age no higher than 75, with no surrender value, with beneficiaries limited to individuals and charities, and where tax avoidance is not a main purpose. The policy is usually written in trust for the person's family.A payment from a relevant life policy is outside the tax charge on employer-financed retirement benefits schemes, and the premiums can be exempt from a benefit in kind charge under section 307 of the Income Tax (Earnings and Pensions) Act 2003, depending on the circumstances ([GOV.UK: HMRC Employment Income Manual, EIM15045](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim15045)). Whether the employer can deduct the premiums turns on the wholly and exclusively test. It protects the family, unlike [key person insurance](https://mortgagelane.com/definitions/3#def-key-person-insurance), which pays the business. — Used on · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) - [Remortgage](https://mortgagelane.com/definitions/4#def-remortgage)Residential — Moving a mortgage to a new lender on the same property, either to a better rate or to release equity. A product transfer, by contrast, stays with the current lender.Remortgage: Full definition · used on 165 pagesA remortgage replaces the existing loan on a property with a new one from a different lender. It is a full application: the new lender underwrites the borrower, values the property and instructs a legal process to redeem the old charge and register its own.The two reasons for one are rate and capital. Moving at the end of an initial period avoids reverting to a standard variable rate, and a remortgage can raise a larger loan against a property that has risen in value or been improved.Staying with the current lender on a new product is a product transfer, not a remortgage. It is quicker and usually needs no valuation or legal work, but it compares only that lender’s range. — Used on · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [Can You Refinance Out of a Portfolio Loan?](https://mortgagelane.com/guides/property-portfolio-remortgage/can-you-refinance-out-of-a-portfolio-loan) · [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) · [Divorce Settlement Bridging Loans \| Buy Out or Settle Fast](https://mortgagelane.com/short-term-finance/divorce-settlement-bridging-loans) · [Do portfolio remortgage lenders require extra documentation?](https://mortgagelane.com/guides/property-portfolio-remortgage/do-portfolio-remortgage-lenders-require-extra-documentation) · [EWS1 for converted MUFB remortgage](https://mortgagelane.com/guides/mufb-mortgage/ews1-for-converted-mufb-remortgage) · [Fixed Term Mortgages](https://mortgagelane.com/mortgages/fixed-term-mortgages) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Guernsey Mortgages](https://mortgagelane.com/insights/guernsey-mortgages) · [HELOC: Home Equity Line of Credit in the UK](https://mortgagelane.com/guides/alternatives-to-bridging-loans/heloc) · and 153 more - [Rent control area](https://mortgagelane.com/definitions/4#def-rent-control-area)Regulation — An area of Scotland designated by Scottish Ministers under the Housing (Scotland) Act 2025, where rent increases on most private residential tenancies are capped.Rent control area: Full definition · used on 2 pagesAn area of Scotland designated by Scottish Ministers under the Housing (Scotland) Act 2025, where rent increases on most private residential tenancies are capped.Designation is made by regulations the Scottish Parliament must approve, after a council report and a consultation. The Act sets a maximum permitted increase in a designated area, linked to inflation, which Scottish Ministers can change by regulations. Separate regulations made by Scottish Ministers can exempt some properties from the cap, such as qualifying build to rent and mid-market rent homes. mygov.scot publishes whether any area has been designated. A rent control area is separate from a short-term let control area, which is a planning designation.Sources: [Housing (Scotland) Act 2025, section 9](https://www.legislation.gov.uk/asp/2025/13/section/9); [Private Housing Rent Control (Exempt Property) (Scotland) Regulations](https://www.legislation.gov.uk/ssi/2026/158/made); [mygov.scot: rent pressure zones](https://www.mygov.scot/rent-pressure-zone-checker). — Used on · [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) - [Rent to Buy](https://mortgagelane.com/definitions/4#def-rent-to-buy)Residential — A scheme in England, outside London, that lets a working first-time buyer rent a home at a discounted rent so they can save for a deposit.Rent to Buy: Full definition · used on 2 pagesThe rent is set below the local market rent, and eligibility includes being in work, being a first-time buyer and being able to pay the rent and save at the same time. London has a separate scheme, London Living Rent. [GOV.UK: Rent to Buy](https://www.gov.uk/rent-to-buy). — Used on · [Shared Ownership Mortgages](https://mortgagelane.com/mortgages/shared-ownership-mortgages) · [The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) - [Rental stress test](https://mortgagelane.com/definitions/4#def-rental-stress-test)Buy-to-let — A lender’s calculation of whether rental income provides sufficient cover for mortgage commitments at its chosen assessment rate.Rental stress test: Full definition · used on 178 pagesA lender’s calculation of whether rental income provides sufficient cover for mortgage commitments at its chosen assessment rate.The lender defines the required cover, assessment rate and treatment of costs. The rate may differ from the pay rate, and the result is only one of the limits on borrowing. — Used on · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Best UK mortgage for expats in Dubai](https://mortgagelane.com/guides/expat-mortgage-guide/best-uk-mortgage-for-expats-in-dubai) · [Bridging Loans for HMOs \| Buy, Convert & Refinance](https://mortgagelane.com/short-term-finance/bridging-finance-for-hmos) · [Buy to Let and Commercial Mortgages Declined on Affordability](https://mortgagelane.com/insights/what-to-do-if-your-mortgage-is-declined-on-affordability) · [Credit score 999 but refused mortgage](https://mortgagelane.com/guides/declined-mortgages/credit-score-999-but-refused-mortgage) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Excellent credit score but refused mortgage](https://mortgagelane.com/guides/declined-mortgages/excellent-credit-score-but-refused-mortgage) · [Expat Buy to Let Mortgage UK](https://mortgagelane.com/insights/expat-buy-to-let-mortgage-uk) · [Expat Mortgage Guide](https://mortgagelane.com/guides/expat-mortgage-guide) · [Holiday Let Lortgage Edinburgh](https://mortgagelane.com/guides/holiday-let-mortgages/lortgage-edinburgh) · [Holiday Let Mortgages](https://mortgagelane.com/mortgages/holiday-let-mortgages) · [Holiday Let Mortgages Northern Ireland](https://mortgagelane.com/guides/holiday-let-mortgages/northern-ireland) · and 166 more - [Renters' Rights Act 2025](https://mortgagelane.com/definitions/4#def-renters-rights-act)Regulation — The Act that reformed private renting in England, turning assured shorthold tenancies into rolling assured periodic tenancies and ending 'no fault' evictions under section 21.Renters' Rights Act 2025: Full definition · used on 16 pagesOn 1 May 2026 existing assured shorthold tenancies in England became [assured periodic tenancies](https://mortgagelane.com/definitions#def-assured-periodic-tenancy) with no end date, and a landlord now needs a legal ground for possession and a section 8 notice. A separate provision means a long lease of more than 21 years can no longer be an assured tenancy, whatever its ground rent. Wales and Scotland have their own systems: [occupation contracts](https://mortgagelane.com/definitions/3#def-occupation-contract) and [private residential tenancies](https://mortgagelane.com/definitions/4#def-private-residential-tenancy). [GOV.UK: Renters' Rights Act overview for landlords](https://www.gov.uk/guidance/renters-rights-act-an-overview-for-landlords). — Used on · [Build to Rent Development Finance](https://mortgagelane.com/short-term-finance/build-to-rent-development-finance) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Mortgages in Northern Ireland, Calculator and Co-Ownership](https://mortgagelane.com/mortgages/mortgages-northern-ireland) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [PBSA Finance, Purpose-Built Student Accommodation](https://mortgagelane.com/short-term-finance/pbsa-finance) · [Portfolio Mortgages, Portfolio Landlord Rules and Stress Tests](https://mortgagelane.com/mortgages/property-portfolio-mortgages) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) · [Remortgage to Buy a Second Property, Buy to Let or Second Home](https://mortgagelane.com/mortgages/remortgage-to-buy-second-property) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) · [Investment Property Mortgages](https://mortgagelane.com/mortgages/investment-property-mortgages) · [Landlord Mortgage Survey 2026](https://mortgagelane.com/articles/landlord-mortgage-survey-2026) · and 4 more - [Repayment mortgage](https://mortgagelane.com/definitions/4#def-repayment-mortgage)Residential — A mortgage whose scheduled payments cover both interest and part of the capital borrowed.Repayment mortgage: Full definition · used on 47 pagesA mortgage whose scheduled payments cover both interest and part of the capital borrowed.If all required payments are made, the capital is repaid by the end of the agreed term. Changing the rate, term or balance changes the payment needed.Sources: [MoneyHelper: mortgage repayment options](https://www.moneyhelper.org.uk/en/homes/buying-a-home/mortgage-repayment-options). — Used on · [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) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [High Net Worth Mortgages](https://mortgagelane.com/specialists/high-net-worth-mortgages) · [Interest Only Residential Mortgages](https://mortgagelane.com/mortgages/interest-only-residential-mortgages) · [Interest only mortgages](https://mortgagelane.com/guides/residential/interest-only-mortgages) · [Interest-only high net worth mortgages](https://mortgagelane.com/guides/mortgages-high-net-worth-mortgages/interest-only-high-net-worth-mortgages) · [Life Insurance When Declined, Refused or Postponed Cover](https://mortgagelane.com/insurance/life-insurance-when-declined) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Mortgage for a Leasehold Flat](https://mortgagelane.com/mortgages/mortgage-for-leasehold-flat) · [Offset Mortgages](https://mortgagelane.com/mortgages/offset-mortgages) · and 35 more - [Residential mortgage](https://mortgagelane.com/definitions/4#def-residential-mortgage)Residential — A loan secured against a property that the borrower intends to occupy as a home.Residential mortgage: Full definition · used on 203 pagesA loan secured against a property that the borrower intends to occupy as a home.The lender assesses the borrower’s ability to make payments and whether the property is acceptable security. The agreed repayment method determines how interest and the amount borrowed are repaid.Sources: [MoneyHelper: mortgage repayment options](https://www.moneyhelper.org.uk/en/homes/buying-a-home/mortgage-repayment-options). — Used on · [Accidental landlord mortgage](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/accidental-landlord-mortgage) · [Agricultural land mortgage](https://mortgagelane.com/guides/rural-mortgages/agricultural-land-mortgage) · [Are residential mortgages for £50k income loans regulated?](https://mortgagelane.com/guides/mortgage-for-50k-salary/are-residential-mortgages-for-50k-income-loans-regulated) · [Are there acreage restrictions to smallholding mortgages?](https://mortgagelane.com/guides/smallholding-mortgages/are-there-acreage-restrictions-to-smallholding-mortgages) · [Barrister mortgage](https://mortgagelane.com/insights/barrister-mortgage) · [Bridging Loan for a Self-Build \| Plot Purchase & Gaps](https://mortgagelane.com/short-term-finance/for-a-self-build) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Bridging Loans for Auction](https://mortgagelane.com/short-term-finance/auction-property-loans) · [Bridging Loans for Barn Conversions \| Class Q & Planning](https://mortgagelane.com/short-term-finance/bridging-finance-for-barn-conversions) · [Bridging loans for homebuyers](https://mortgagelane.com/guides/bridging-loans/homebuyers) · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · and 191 more - [Retail Prices Index (RPI)](https://mortgagelane.com/definitions/4#def-retail-prices-index)Lending and affordability — An older measure of inflation that the Office for National Statistics still publishes because it is written into many contracts, such as ground rent reviews and earlier Help to Buy equity loans. It is not an accredited official statistic, and the ONS discourages its use.Retail Prices Index (RPI): Full definition · used on 6 pagesEnglish Help to Buy equity loans taken from 2013 to 2021 raise their interest rate each April by RPI plus 1%, and some leases link ground rent increases to RPI. Lenders that set ground rent limits often accept RPI-linked increases but not compounded RPI.[ONS: inflation and price indices](https://www.ons.gov.uk/economy/inflationandpriceindices). — Used on · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Mortgage for a Leasehold Flat](https://mortgagelane.com/mortgages/mortgage-for-leasehold-flat) · [Help to Buy Mortgages](https://mortgagelane.com/mortgages/help-to-buy-mortgages) · [Help to buy equity loan mortgage](https://mortgagelane.com/guides/residential/help-to-buy-equity-loan-mortgage) · [Mortgage declined ground rent](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-ground-rent) · [Shared ownership mortgages](https://mortgagelane.com/guides/residential/shared-ownership-mortgages) - [Retained profit](https://mortgagelane.com/definitions/4#def-retained-profit)Lending and affordability — Profit a company keeps after corporation tax and dividends, which adds to its reserves and which some lenders count towards a director's income.Retained profit: Full definition · used on 17 pagesRetained profit is the part of a company's profit after corporation tax that is not paid out as [dividends](https://mortgagelane.com/definitions/2#def-dividend-income). It stays in the company's reserves, where it can fund the business or be paid out later, since a company can pay dividends from its available profits of previous financial years as well as the current one ([GOV.UK: taking money out of a limited company](https://www.gov.uk/running-a-limited-company/taking-money-out-of-a-limited-company)).A director who takes a salary and only part of the profit as dividends pays less personal tax in that year, and the rest is retained. A lender reading salary and dividends does not see the retained part. A lender reading salary plus share of net profit counts the director's percentage of the year's profit whether drawn or retained, and some of those lenders check that the company holds the cash to pay it out and that drawing it would not harm the business. Retained profit and cash are different things: a company can show retained profit that is tied up in stock, equipment or money owed by customers. — Used on · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [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) · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-mortgages) · [Retained Profits Mortgages, Director Cash and Reserves Checks](https://mortgagelane.com/mortgages/retained-profits-mortgages) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) · [Contractor Mortgages](https://mortgagelane.com/mortgages/contractor-mortgages) · [Contractor mortgages](https://mortgagelane.com/guides/residential/contractor-mortgages) · [Expat Buy to Let Mortgage UK](https://mortgagelane.com/insights/expat-buy-to-let-mortgage-uk) · [High net worth mortgages for complex income](https://mortgagelane.com/guides/mortgages-high-net-worth-mortgages/high-net-worth-mortgages-for-complex-income) · [IT Contractor Mortgages](https://mortgagelane.com/mortgages/it-contractor-mortgages) · and 5 more - [Retention (mortgage)](https://mortgagelane.com/definitions/4#def-mortgage-retention)Valuation — Part of a mortgage advance that the lender holds back at completion until specified work is done or evidenced, such as essential repairs or a Japanese knotweed management plan.Retention (mortgage): Full definition · used on 24 pagesA retention is set out in the mortgage offer. The lender advances the rest of the loan at completion and releases the retained amount once the condition is met, on the evidence it specifies, which can include a further inspection by its valuer. Until then the borrower funds the difference from their own money, so a retention raises the cash needed at completion.A retention can follow a [mortgage valuation](https://mortgagelane.com/definitions/3#def-mortgage-valuation) that identifies work the lender wants done. 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) anticipates retentions at management categories A and B and says one ought not to be imposed at category C. Lenders differ: some do not make retentions, and ask instead for the work or the plan to be in place before completion. — Used on · [Can a Bridging Loan Affect a Mortgage Application?](https://mortgagelane.com/short-term-finance/can-bridging-affect-mortgage-application) · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [Remortgage for Home Improvements, Extensions and Lofts](https://mortgagelane.com/mortgages/remortgage-for-home-improvements) · [Barn conversion mortgage](https://mortgagelane.com/guides/self-build-mortgages/barn-conversion-mortgage) · [Buy to Let Mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) · [Can I get a buy to renovate mortgage in the UK?](https://mortgagelane.com/guides/renovation-mortgages/can-i-get-a-buy-to-renovate-mortgage-in-the-uk) · [Converted MUFB HMO Mortgages](https://mortgagelane.com/mortgages/converted-mufb-hmo-mortgage) · [Ground Up Development Finance](https://mortgagelane.com/short-term-finance/ground-up-development-finance) · [HMO Mortgage For LTD Company](https://mortgagelane.com/insights/hmo-mortgage-for-ltd-company) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) · [Low Credit Score Mortgages, What Lenders Really See](https://mortgagelane.com/mortgages/low-credit-score-mortgages) · and 12 more - [Retirement interest-only mortgage](https://mortgagelane.com/definitions/4#def-retirement-interest-only-mortgage)Residential — An interest-only mortgage for older borrowers, with the interest paid every month and the loan usually repaid when the home is sold after the last borrower dies or moves into long-term care.Retirement interest-only mortgage: Full definition · used on 6 pagesThe FCA defines a retirement interest-only mortgage as an [interest-only mortgage](https://mortgagelane.com/definitions/3#def-interest-only-mortgage) that requires the interest to be paid in full over the term, is open only to older customers above a specified age, and under which the lender cannot seek full repayment until a specified life event, unless the customer breaks the terms ([FCA Handbook glossary: retirement interest-only mortgage](https://handbook.fca.org.uk/glossary/G3559r)).It is a [regulated mortgage](https://mortgagelane.com/definitions/4#def-regulated-mortgage) assessed under the standard mortgage rules, so the lender checks that income, including pensions, covers the interest. Because the interest is paid, the balance does not grow, unlike a [lifetime mortgage](https://mortgagelane.com/definitions/3#def-lifetime-mortgage) on which interest rolls up. Minimum ages vary by lender. — 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) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgage Network](https://mortgagelane.com/insights/join-mortgage-lane-mortgage-network-for-brokers) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) - [Revenue per available room (RevPAR)](https://mortgagelane.com/definitions/4#def-revenue-per-available-room)Commercial — A hotel trading measure: room revenue divided by the number of rooms available, sold or not, so it reflects both the price achieved and how full the hotel is.Revenue per available room (RevPAR): Full definition · used on 7 pagesRevPAR is read with occupancy and the [average daily rate (ADR)](https://mortgagelane.com/definitions#def-average-daily-rate), which divides the same revenue by rooms sold. [Visit Wales: accommodation occupancy survey definitions](https://www.gov.wales/sites/default/files/statistics-and-research/2021-01/wales-accommodation-occupancy-survey-2019_0.pdf). — Used on · [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) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · [Commercial mortgage for guest house](https://mortgagelane.com/guides/commercial-mortgage-guide/guest-house) · [Commercial mortgage for hotel](https://mortgagelane.com/guides/commercial-mortgage-guide/hotel) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) - [Revolving credit facility](https://mortgagelane.com/definitions/4#def-revolving-credit-facility)Commercial — A secured facility with an agreed limit that can be drawn, repaid and drawn again, with interest charged only on the balance outstanding.Revolving credit facility: Full definition · used on 23 pagesA revolving credit facility secured on property works like an overdraft against the equity. The limit is set from the value and the lender's loan to value, less any existing charges, and the borrower draws against it, repays and draws again during the availability period.Interest is charged on the drawn balance rather than on the limit, and a facility can add a [non-utilisation fee](https://mortgagelane.com/definitions/3#def-non-utilisation-fee) on the undrawn part. Once the fees are counted, that can make it cheaper than a term loan for a borrower whose need is intermittent, and dearer for one who stays fully drawn.Bridging lenders offer revolving bridging facilities to repeat purchasers, and some commercial lenders and private banks offer longer facilities against buy to let portfolios and commercial property. It suits portfolio landlords and developers funding deposits, refurbishments and auction purchases, where the money is needed quickly and repaid from a sale or a refinance. — Used on · [A Revolving credit facility bridging loan](https://mortgagelane.com/guides/bridging-loans/a-revolving-credit-facility-bridging-loan) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) · [Mortgage declined on credit score](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-on-credit-score) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) · [Agricultural bridging loan](https://mortgagelane.com/guides/bridging-loans/agricultural-bridging-loan) · [Barrister mortgage](https://mortgagelane.com/insights/barrister-mortgage) · [Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide) · and 11 more - [RICS Home Survey](https://mortgagelane.com/definitions/4#def-rics-home-survey)Valuation — A survey of a home's condition by an RICS surveyor for the buyer, at Level 1 (condition report), Level 2 (formerly the HomeBuyer Report) or Level 3 (the most detailed, formerly the building survey). It is separate from the lender's mortgage valuation.RICS Home Survey: Full definition · used on 12 pagesLevel 1 describes the property's condition, risks and urgent defects without repair advice or a valuation. Level 2 suits conventional properties and has a version that includes a valuation. Level 3 is the most comprehensive report.A [mortgage valuation](https://mortgagelane.com/definitions/3#def-mortgage-valuation) is carried out for the lender, and RICS warns that it is not a survey: defects that would be costly to put right may not appear in it. Scotland has its own [Home Report](https://mortgagelane.com/definitions/2#def-home-report). [RICS: home survey types](https://www.rics.org/consumer-guides/house-surveys-uk-the-costs-types-and-benefits-of-an-rics-home-survey). — Used on · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [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 for Listed Buildings with Thatched Roofs](https://mortgagelane.com/guides/mortgage-for-listed-buildings/thatched-roofs) · [Remortgage for Home Improvements, Extensions and Lofts](https://mortgagelane.com/mortgages/remortgage-for-home-improvements) · [Converted Listed Churches and Chapels](https://mortgagelane.com/guides/mortgage-for-listed-buildings/converted-listed-churches-and-chapels) · [Hotel Development Finance](https://mortgagelane.com/short-term-finance/hotel-development-finance) · [Mortgages for Converted Listed Barns](https://mortgagelane.com/guides/mortgage-for-listed-buildings/converted-listed-barns) · [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) · [PBSA Finance, Purpose-Built Student Accommodation](https://mortgagelane.com/short-term-finance/pbsa-finance) · [Residential Development Finance](https://mortgagelane.com/short-term-finance/residential-development-finance) - [Right to Acquire](https://mortgagelane.com/definitions/4#def-right-to-acquire)Residential — A scheme in England under which an eligible housing association tenant can buy their rented home at a discount, broadly where the home was built, bought or transferred to the association after 31 March 1997.Right to Acquire: Full definition · used on 3 pagesThe tenant must meet the eligibility rules, including time with a public sector landlord, and the landlord must be registered with the Regulator of Social Housing. Council tenants use the [Right to Buy](https://mortgagelane.com/definitions/4#def-right-to-buy-mortgage) instead. Wales has legislated to abolish the Right to Acquire. [GOV.UK: Right to Acquire](https://www.gov.uk/right-to-acquire-buying-housing-association-home). — Used on · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Right to Buy mortgages](https://mortgagelane.com/guides/residential/right-to-buy-mortgages) · [The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) - [Right to Buy mortgage](https://mortgagelane.com/definitions/4#def-right-to-buy-mortgage)Residential — A mortgage used by an eligible tenant to purchase their home through the Right to Buy scheme in England.Right to Buy mortgage: Full definition · used on 23 pagesA mortgage used by an eligible tenant to purchase their home through the Right to Buy scheme in England.Scheme eligibility and the discount are separate from mortgage approval. The lender still assesses the borrower and property; the scheme also places conditions on a later sale.Sources: [GOV.UK: Right to Buy](https://www.gov.uk/right-to-buy-buying-your-council-home). — Used on · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [First time buyer right to buy mortgage](https://mortgagelane.com/guides/right-to-buy-mortgages/first-time-buyer-right-to-buy-mortgage) · [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) · [Purchase a council or housing association property](https://mortgagelane.com/guides/right-to-buy-mortgages/purchase-a-council-or-housing-association-property) · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · [Right to Buy Mortgages](https://mortgagelane.com/mortgages/right-to-buy-mortgages) · [Right to Buy Mortgages: detailed guide](https://mortgagelane.com/guides/mortgages-right-to-buy-mortgages-details) · [Right to Buy discount as a deposit](https://mortgagelane.com/guides/right-to-buy-mortgages/discount-as-a-deposit) · [Right to Buy mortgages](https://mortgagelane.com/guides/residential/right-to-buy-mortgages) · [Right to buy mortgage with bad credit](https://mortgagelane.com/guides/right-to-buy-mortgages/bad-credit) · [95% Mortgages](https://mortgagelane.com/mortgages/95-percent-mortgages) · and 11 more - [Rolled-up interest](https://mortgagelane.com/definitions/4#def-rolled-up-interest)Bridging finance — Interest that is added to the outstanding loan rather than paid as it falls due, with repayment deferred to a later date.Rolled-up interest: Full definition · used on 32 pagesInterest that is added to the outstanding loan rather than paid as it falls due, with repayment deferred to a later date.The balance increases as interest is added. Whether further interest is charged on accrued interest depends on the agreement, so compare the stated calculation method and [total redemption amount](https://mortgagelane.com/definitions/4#def-redemption-statement) rather than assuming every facility compounds in the same way. — Used on · [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) · [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) · [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) · [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) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Probate Loans, Executor Loans and Inheritance Advances](https://mortgagelane.com/mortgages/probate-loans) · and 20 more - [Royal Institution of Chartered Surveyors (RICS)](https://mortgagelane.com/definitions/4#def-royal-institution-of-chartered-surveyors)Valuation — The professional body for chartered surveyors. It sets qualifications and standards, regulates its members and firms, and runs the registration scheme for valuers who carry out valuations to its Red Book standards.Royal Institution of Chartered Surveyors (RICS): Full definition · used on 24 pagesRICS works under a Royal Charter and independently regulates chartered professionals and firms. Members who carry out most valuation work must be registered under its Valuer Registration Scheme, which checks they meet the Red Book standards, and can then use the RICS Registered Valuer designation.RICS also publishes the [Home Survey](https://mortgagelane.com/definitions/4#def-rics-home-survey) levels a buyer can choose from, and professional standards on particular valuations, such as buy-to-let and HMO property. Some schemes require an RICS valuation: repaying a Help to Buy equity loan, for example, needs one from an independent RICS-registered surveyor. [RICS: about RICS](https://www.rics.org/about-rics). — Used on · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [Japanese Knotweed Mortgages, RICS Categories and Lender Rules](https://mortgagelane.com/mortgages/japanese-knotweed-mortgages) · [Mortgage Declined on Valuation, Down and Nil Valuations](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) · [SSAS and SIPP Mortgages, Pension Commercial Property Loans](https://mortgagelane.com/mortgages/ssas-sipp-mortgages) · [Spray Foam Insulation Mortgages](https://mortgagelane.com/insights/spray-foam-insulation-mortgages) · [Are valuations regulated?](https://mortgagelane.com/guides/hmo-mortgage-valuations/are-valuations-regulated) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [HMO Mortgage Valuations](https://mortgagelane.com/insights/hmo-mortgage-valuations) · [HMO Mortgage Valuations: detailed guide](https://mortgagelane.com/guides/insights-hmo-mortgage-valuations-details) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) · and 12 more - [Rural mortgage](https://mortgagelane.com/definitions/4#def-rural-mortgage)Specialist lending — A mortgage for property in a rural setting, potentially including land, outbuildings or agricultural use.Rural mortgage: Full definition · used on 29 pagesA mortgage for property in a rural setting, potentially including land, outbuildings or agricultural use.The location alone does not create a separate loan type. The lender considers residential or business use, acreage, access and restrictions to decide whether residential, agricultural or commercial finance is appropriate. — Used on · [Acreage mortgage](https://mortgagelane.com/guides/rural-mortgages/acreage-mortgage) · [Agricultural land mortgage](https://mortgagelane.com/guides/rural-mortgages/agricultural-land-mortgage) · [Agricultural tie mortgage](https://mortgagelane.com/guides/rural-mortgages/agricultural-tie-mortgage) · [Are there acreage restrictions to smallholding mortgages?](https://mortgagelane.com/guides/smallholding-mortgages/are-there-acreage-restrictions-to-smallholding-mortgages) · [Buy to let rural area mortgage](https://mortgagelane.com/guides/rural-mortgages/buy-to-let-rural-area-mortgage) · [Can I get a smallholding mortgage with adverse credit?](https://mortgagelane.com/guides/smallholding-mortgages/can-i-get-a-smallholding-mortgage-with-adverse-credit) · [How do I know what property restrictions come with a smallholding?](https://mortgagelane.com/guides/smallholding-mortgages/how-do-i-know-what-property-restrictions-come-with-a-smallholding) · [How long will it take to get a smallholding mortgage?](https://mortgagelane.com/guides/smallholding-mortgages/how-long-will-it-take-to-get-a-smallholding-mortgage) · [Restrictive covenant mortgage](https://mortgagelane.com/guides/rural-mortgages/restrictive-covenant-mortgage) · [Rural Mortgages](https://mortgagelane.com/specialists/rural-mortgages) · [Rural Mortgages: detailed guide](https://mortgagelane.com/guides/specialists-rural-mortgages-details) · [Rural home mortgage](https://mortgagelane.com/guides/rural-mortgages/rural-home-mortgage) · and 17 more ## 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/4