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Mortgages / Key terms explained
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.
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.
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.
This is the percentage rate at which the lender calculates the interest they charge the borrower for the mortgage.
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.
This is an estimate of the monthly repayments at the current stated interest rate.
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.
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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Lloyds Bank International Limited, a Jersey registered and regulated bank, is a subsidiary of Lloyds Bank Corporate Markets
plc, a UK Non-ring-fenced Bank. Both companies are part of Lloyds Banking Group plc and are independent from Lloyds
Bank plc which is Lloyds Banking Group’s ring-fenced, UK regulated retail and commercial bank. For more information on
ring-fencing visit international.lloydsbank.com/ringfencing
Our products and services are offered by Lloyds Bank International Limited & Lloyds Investment Fund Managers Limited. See company Information. Whilst our services will be available to many customers, there are countries where, due to legal or regulatory restraints, we cannot provide them.
Rules and regulations made under the UK Financial Services and Markets Act 2000 for the protection of depositors and investors, including the Financial Services Compensation Scheme, do not apply to the financial services business of companies within the Lloyds Banking Group carried out from offices outside of the United Kingdom.
Lloyds Bank International Limited. Registered office and principal place of business: 11-12 Esplanade, St Helier, Jersey, JE2 3QA. Lloyds Bank International Limited is incorporated in Jersey No. 4029 and is regulated by the Jersey Financial Services Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991 and investment and general insurance mediation business under the Financial Services (Jersey) Law 1998. Lloyds Bank International Limited subscribes to the Jersey Code of Practice for Consumer Lending and has also notified the Jersey Financial Services Commission that it carries on money service business.
The Guernsey branch of Lloyds Bank International Limited, principal place of business PO Box 136, Sarnia House, Le Truchot, St Peter Port, Guernsey, GY1 4EN, is licensed by the Guernsey Financial Services Commission to take deposits and to carry on controlled investment business and insurance intermediary business under The Banking Supervision (Bailiwick of Guernsey) Law, 1994, The Protection of Investors (Bailiwick of Guernsey) Law, 1987 (as amended) and The Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002 (as amended), respectively, and is also registered with the Guernsey Financial Services Commission as a money service provider.
The Isle of Man branch of Lloyds Bank International Limited of PO Box 111, Peveril Buildings, Peveril Square, Douglas, Isle of Man IM99 1JJ is licensed by the Isle of Man Financial Services Authority to conduct deposit-taking and investment business and is also registered as an insurance intermediary in respect of general business.
Lloyds Bank International Limited is a Jersey registered company that is a wholly owned subsidiary of Lloyds Bank Corporate Markets plc. Lloyds Bank Corporate Markets plc is incorporated in the United Kingdom, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 763256, and is part of the Lloyds Banking Group. Lloyds Bank International Limited places funds with Lloyds Bank Corporate Markets plc and thus its financial standing is linked to that of the group. Depositors may wish to form their own view on the financial standing of Lloyds Bank International Limited and its parent based upon publicly available information. Download Lloyds Bank International Limited’s latest annual financial statements at http://international.lloydsbank.com/legal-information/
Lloyds Investment Fund Managers Limited. Registered office: 11-12 Esplanade, St Helier, Jersey, JE2 3QA. Authorised by the Jersey Financial Services Commission under the Collective Investment Funds (Jersey) Law 1988.