Glossary of Terms

We have gathered together on this page, a collection of the terms most often used in the Mortgage, Financial and Property Services Industries.

If you are searching for the meaning of a term. Please click on its initial letter below. A list of terms commencing with that letter will be presented to you. Hopefully, you will find the term you require.

If you cannot find an explanation for the term you require or you believe our description to be inaccurate, please submit your request for an addition or correction. If you have a suggested correction, please make it polite.

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Initial Interest

Any payment due for the period from the day the mortgage began up to the first payment date.

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Income Multiples / Multipliers
The size of the mortgage that the lender will offer is usually worked out by multiplying your income by a set figure. Most lenders will take 3 times the gross salary of the first applicant plus 1 times the income of the second applicant or 2.5 times the joint salaries. Some lenders will allow you to borrow more than this - refer to Affordability or LEA Financial Services for details.
Income Reference
This is confirmation from your employer that you earn the amount you stated when you made your mortgage application. If you are self employed, the lender may require confirmation from your accountant.
Individual Savings Account (ISA)
The Government's tax-free saving scheme. You can make financial provisions for the future by putting money into any of three types of investment - cash savings, stocks and shares and life assurance.
Initial Disclosure Document (IDD)
This document provides information about LEA Financial Services Limited and the service that we offer. The document has been designed by the Financial Services Authority (FSA) and a version should be provided to you by anyone offering to sell you a mortgage. These documents allow you easily to compare mortgage lenders and brokers.
Initial Interest
Any payment due for the period from the day the mortgage began up to the first payment date.
Insolvency Policy
The lender may insist on an insolvency policy where there has been a sale at an undervalue (where someone has sold their property for less than it's worth). If there is a sale at an undervalue, and the seller is later declared bankrupt, previous transactions are looked at again, and it is possible that a sale at an undervalue would be declared void. The lender would therefore insist on the policy to protect their security. An Insolvency Policy may also be required in the case of a transfer and gift as well as a sale.
Interest Only Mortgage
With this type of mortgage, the borrower is only required to pay interest on the amount borrowed during the mortgage term. The original capital balance will remain outstanding at the end of your mortgage term. It is the borrower's responsibility to ensure that enough funds will exist (either through an investment policy or other means) to repay the mortgage at the end of the term.
Intermediary
A mortgage broker or advisor who locates the most appropriate mortgage for borrowers and arranges the mortgage on their behalf.