Understanding Mortgage Terms – D to F

In the previous blog we covered A to C of mortgage terms you’ll often come across, and their meanings. In this blog we will look at D to F.


If you miss a mortgage payment and slip into arrears then it is known as ‘defaulting’. If you think this is a possibility, then speak to your lender immediately to discuss your options.


Your deposit is the amount you will need to put down yourself toward the cost of your chosen property. The amount of deposit needed varies, and can be as low as 10%. The higher deposit you put down, the better deal you will get on your mortgage.

Early Repayment Charges

You will have to pay an early repayment charge if you leave your mortgage during an initially agreed period. The charge can vary, usually around 1-3% of the loan amount still left to pay.

Endowment Mortgage

This is a type of interest-only mortgage where you additionally pay money into an investment called an endowment. Over time, the endowment should grow to pay off the mortgage at the end of the term. There is the risk, however, that it will not grow enough.


This is the amount of money you would have left after subtracting the amount currently outstanding on your mortgage from the value of your property.

Equity Release Scheme

There are two different kinds of equity release schemes; home-reversion schemes and lifetime mortgage. An equity release scheme helps older homeowners to release any cash ties up in their property. The age limit on these products does vary from provider to provider, usually it stands at 55 to 65 years old.

Fixed-Rate Mortgage

A fixed-rate mortgage means that your interest rate will remain the same throughout the initial period of the deal. This is usually 2 to 5 years. Having a fixed-rate mortgage means you will know your monthly payment total, knowing it will not rise or reduce as the Bank of England base rate changes.

Flexible Mortgage

If you have a flexible mortgage deal then you are able to overpay, underpay and even take breaks from your mortgage payments. These kind of mortgages help you pay off your mortgage early and save money on interest, but they are more expensive than other types of mortgages.


If a property is freehold, then you also own the land it is built on.

Latest Posts

David James Support The Mapperley Scarecrow Festival 2021

David James were delighted to support this years Mapperley Scarecrow Festival in association with What’s On Mapperley and the Co-op....

History On Your Door Step In The Gedling Borough

Looking for something different to do this bank holiday? Well, May is Local and Community History month and now is...

Earth Day – Changes You Can Make Around Your Home To Make It Green

  Earth Day is the perfect time to take a look around your home and see if there are any...