Advance
The amount of money that a lender will loan to you. Also referred to as loan amount or capital.

Affordability
A measurement of how much you can afford to pay for a property, based upon the amount of the mortgage that could be obtained and the cost of the monthly repayments and your monthly income and expenditure commitments.

Agreement in Principal
Also known as approval in principal. A certificate that some lenders give to show the amount of money they are willing to lend you. This is not a guarantee that they will lend that amount when they process your full application, but it can be useful when dealing with estate agents.

APR
Annual Percentage Rate. For a mortgage this shows the overall cost and enables mortgages with different terms and costs to be compared more easily. APR takes into account the term, interest rate and other costs such as application fees, arrangement fees and early repayment charges.

Application Fee
Almost all lenders require a fee to be paid in order for them to accept an application. This fee covers their costs in assessing your application - such as cost of the credit report and the valuation. Most lenders do not refund the fees if the application is rejected.

Arrangement Fee
A fee charged by the lender to reserve the mortgage funds, once your application has been approved.

ASU Insurance
Accident, Sickness and Unemployment insurance. Also referred to as Mortgage Payment Protection and MPPI (Mortgage Payment Protection Insurance), this provides cover for your mortgage payments if you are unable to work for a period of up to 12-24 months.