• Key terms explained

    Additional borrowing

    The term used when a customer increases their borrowing to release some of the equity available in their property.

    Annual percentage rate (APR)

    APR stands for the Annual Percentage Rate of charge used to compare loan offers.

    Arrangement Fee

    This is charged on some mortgages as part of the mortgage deal. The fee can vary and will be discussed with you by your Mortgage Arranger.

    Bank of England Base Rate

    The Bank of England Base Rate is set by the Bank of England. Tracker mortgage interest rates are linked with a margin above this Base Rate.

    Capital and interest repayment

    Your monthly payment covers the interest and also reduces the total balance outstanding.

    Early repayment charge

    We offer different types of mortgage products with different interest rates. With some of these there may be a charge if you repay all or part of your loan within a certain period of time; we call these early repayment charges. This fee varies and will be listed as part of the details shown on our Mortgage Rate sheet that you'll be given and also within your offer letter.

    Estimated property value

    The purchase price or the conservative market value of the property being used as security.


    The monetary difference between a property’s actual value and the remaining balance of the mortgage on the property.

    Fixed rate mortgage

    A fixed rate mortgage provides the security of fixed mortgage repayments until an agreed date, no matter what happens to interest rates.

    Interest calculated daily

    The interest chargeable on the outstanding mortgage balance is calculated every day rather than at the end of each week, month or year.

    Interest only

    The monthly payment covers just the interest and the original capital amount borrowed remains outstanding throughout the term of the loan. Please note that Lloyds Bank International only offer mortgages on a capital and interest repayment basis.

    Interest rate

    This is the percentage rate at which the lender calculates the interest they charge the borrower for the mortgage.

    Interest type

    Interest payable may be variable or fixed (a certain rate fixed for a given term set by the lender).

    Loan to value (LTV)

    The loan to value represents the percentage of the value of the property which the buyer is seeking to borrow. E.g. a £100K property with an £80K mortgage = an 80% LTV.

    The maximum LTV we will lend will depend on your individual situation, the property, the loan you choose and the amount you borrow.

    Lump sum payment

    When a customer makes a one-off payment to reduce the outstanding balance on their mortgage. Early repayment charge may apply if paying money into a fixed rate mortgage as per the terms and conditions.

    Monthly repayment

    This is an estimate of the monthly repayments at the current stated interest rate.

    Mortgage term

    The length of time over which a mortgage is taken.


    An overpayment occurs when a borrower chooses to make a larger monthly repayment on their mortgage than is stipulated under the mortgage terms.


    The term used to describe transferring your current mortgage rate from one property to another when you sell your property and buy another. This is subject to terms and conditions.


    When a person transfers their mortgage from another lender or rearranges their mortgage with their existing lender.


    When a customer moves to a new mortgage with the same lender, e.g. their fixed rate period ends and they move to a tracker rate mortgage.

    Tracker rate mortgage

    The mortgage interest rate is set at a fixed percentage above the Bank of England (BoE) Base Rate. The interest rate payable will rise and fall in line with changes to the BoE Base Rate.

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  • Lending is at the Bank’s discretion and you must be 18 or over and resident in Jersey, Guernsey, Alderney or the Isle of Man to apply. Security will be required.

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