What is equity?
Equity is the difference between the amount you owe on your current mortgage and the present value of your home. If your home was worth (£200,000), and your mortgage balance was (£170,000), you'd have equity of (£30,000).

Equity Release
Equity is the difference between the amount of money a person owes on their mortgage and the current value of their home. Equity Release allows you to borrow up to 90% of the current value of your home, for a number of different purposes.

Negative Equity
Occurs when the loan amount outstanding exceeds the market value of the property. For example, you owe £50,000 on your house, but it is only worth £30,000. You are said to have negative equity of £20,000.

Bridging Loan
A short-term loan to a person who has bought a new home before selling his or her current home. The loan is paid off when the current home is sold.

APR (Annual Percentage Rate)
This stands for Annual Percentage Rate of Charge and is considered to be the best means of comparing the cost of different types of credit. The Consumer Credit Act defines APR as the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted.

Fixed Rates
With a fixed rate, your repayments are fixed for a predetermined period

Variable Rate
With a variable rate, your monthly repayments may rise or fall from time to time, in line with general market interest rates. If rates fall, your monthly repayment reduces, but if rates rise, you pay more.

Term
The number of years over which the loan is arranged or is to be repaid. 

Credit Broker
A credit broker is a firm or person who introduces the consumer (you) to a lending institution for the purpose of obtaining credit. The task of a credit broker is to obtain the loan you require on terms acceptable to you.