Mortgage Deals Guide | A

Adverse Credit
    This is the usual term used for people who have a poor credit history (also referred as sub prime). This might  include previous mortgage or loan

arrears, CCJ's or bankruptcy.

AER
    This abbreviation stands for Annual Equivalent Rate. This rate is normally quoted on interest paid on savings and

investments. Interest paid monthly, quarterly or half-yearly represents a higher true rate than the equivalent stated

interest rate paid annually. Hence , the AER allows you to compare interest rates across accounts and reflects not

just the amount of interest but also how frequently it is paid. It illustrates what your interest return would be if the

interest was compounded and paid annually instead of monthly (or any other period).

Appointed Representative AR
    This is often a company or person that only advises on products from one single provider or representative of an authorised broker.

APR.
    This stands for the Annual Percentage Rate. Every firm that lends money is required by law to quote the APR.

Introductory rates of interest do not include arrangement fees you may be charged and also don’t reflect any higher rate of

interest that your borrowings will later revert to. The stated APR takes into account the interest on a loan plus and

additional charges making it easier for you to compare products. Normally, the lower the APR the better the deal.

Arrangement-Fee
    This is the fee you a Lender for providing you with a mortgage or loan. Usually paid on completion and

tend to apply when you take out a fixed rate, discounted or cash back mortgage.

.ASU.
    This abbreviation stands for Accident, Sickness and Unemployment insurance. This insurance type covers mortgage repayments in

case of accident, sickness or involuntary unemployment.

 

 

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