This article gives descriptions of mortgage terminology in the United Kingdom.

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The UK mortgage market is one of the most innovative and competitive in the world.^{[citation needed]} Most borrowing is funded by either mutual organisations (building societies and credit unions) or proprietary lenders (typically banks). For a number of years the market operated with minimal state intervention, although this changed at least temporarily following the 2008 nationalisation of Northern Rock,^[1] which at the time was one of the country's largest mortgage banks.

Since 1982, when the market was substantially deregulated,^[2] there has been substantial innovation and diversification of strategies employed by lenders to attract borrowers. This has led to a wide range of mortgage types.^{[citation needed]}

• Product fee – a fee payable by the borrower to obtain a (usually incentivised^{[clarification needed]}) product.
• Early repayment charge, redemption penalty or tie-in – the lender may incur many forms of up-front costs (for example property valuation costs, if not charged explicitly; or by offering a lower interest rate in the first few years of the mortgage; or – not least – remuneration of intermediaries or sales teams). It would seek to recoup these costs by charging higher interest rates over the remainder of the mortgage term. Therefore, they typically impose a penalty if the borrower repays the loan earlier than planned in order to ensure that at least some of these costs are recouped. These penalties used to be called a redemption penalty or tie-in; however, since the onset of Financial Services Authority regulation they are referred to as an early repayment charge.
• Valuation fee, which pays for a chartered surveyor to visit the property and ensure it is worth enough to cover the mortgage amount.
• Higher lending charge (HLC) – a fee levied by lenders in respect of mortgages exceeding a pre-defined loan-to-value (LTV) percentage threshold. Until the 1990s these were typically levied on all mortgages with an LTV percentage over 75%, but the market generally moved to a 90% threshold at that time. Subsequently, certain lenders have moved away from charging an explicit HLC, in favour of charging an increased interest rate on higher LTV mortgages.

• First time buyer
• Negative equity
• Introductory period – the period of time where there is a lower interest rate on a mortgage such as on a fixed rate mortgage.^[9]

• Arrangement fee – either a percentage of the loan advance or a set fee charged by the mortgage lender or mortgage brokers to provide and arrange a mortgage.
• Loan to Value (LTV) – the total loan size in relation to the value of the property.
• Mortgage gross lending – all new lending done in a given period, including remortgaging and new loans for house purchase.
• Mortgage balances outstanding – the total mortgage balances outstanding at a given point of time.
• Net mortgage lending – the total change in balances outstanding between two points in time, this can also be calculated by adding together the total gross lending in a period, less repayments, redemptions and loan losses in the same time period.
• Redemption – paying back a mortgage 'early' as opposed to paying back a mortgage following a set repayment plan, typically when remortgaging to another mortgage provider or by way of some other lump sum payment (e.g. when selling the property).
• Remortgaging – refinancing of a mortgage, usually understood to mean moving from one provider to another.

• Mortgage loan
• Remortgage