Collateral:
Assets used as security for a lease/loan.
Debt Consolidation: The combining of debt from different financial institutions or products into one loan
Default: Failure to carry out the terms of a contract.

Fixed Rate:
Predetermined, nonadjusting rate of interest applied to the principal balance of a loan.

Freehold:
The buyer of a Freehold property owns both the property and the land it stands on indefinitely. See also Leasehold.

Leasehold:
The buyer of a Leasehold property owns the property for a set number of years, but doesn't own the land on which it stands. See also Freehold.

Interest Only mortgages:
With this method the initial loan amount remains the same throughout the term of the loan, while the monthly mortgage repayments only pay off the interest being charged on this amount.

LIBOR (London Interbank Offered Rate):
Rate that the most creditworthy international banks dealing in Eurodollars charge each other for loans.

Loan-to-Value:
The difference between the actual loan amount funded to the borrower and the value of collateral received as security for the loan.

Refinancing:
Paying off one loan with the proceeds from another.

Security:
Collateral or other items used to secure a transaction through a financial institution.

Self Build:
This is a mortgage for property under construction. The loan is paid out in stages as the property is completed, in order to ensure the LTV does not rise too high at any point.

Stamp Duty:
This is a government tax charged on properties with a purchase price in excess of £60,000. Properties are charged 1% from £60,000 to £250,000, 3% from £250,000 to £500,000 and 4% above £500,000. It is not payable on remortgages.

Standard Variable Rate (SVR):
This is a variable rate determined entirely at each Lender's discretion. Unless linked to Libor or the Bank of England Base Rate, the SVR is the reverting rate at the end of any special offer period, such as a Capped, Discounted or Fixed rate.

Working Capital:
Cash available for daily business operations.

Variable Rate:
A transaction with an interest rate that may fluctuate. The rate is often tied to an index that reflects changes in market rates of interest.