Glossary

Mortgage terms, in plain English

The jargon you'll meet when buying a home in Scotland — defined simply, without the spin.

A

Additional Dwelling Supplement (ADS): An extra rate of LBTT charged when you buy an additional residential property in Scotland, such as a second home or buy-to-let, on top of standard LBTT.
Affordability assessment: A lender's check of whether you can sustainably afford repayments, based on income, outgoings, credit commitments and stress-tested interest rates.
Agreement in Principle (AIP): An indication from a lender of how much they may be willing to lend, based on a soft check. It is not a formal mortgage offer but signals you are a credible buyer.
APRC: Annual Percentage Rate of Charge — the total yearly cost of a mortgage including interest and fees, used to compare deals on a like-for-like basis.

Buy-to-let: A mortgage for a property you intend to rent out rather than live in. Lending is usually assessed against expected rental income and a different set of rules applies.

Closing date: In Scotland, a deadline set by the seller's agent by which all interested buyers must submit their best offer. The seller then chooses which offer to accept.

Disposition: The Scottish legal deed that transfers ownership of a property from seller to buyer, registered in the Land Register of Scotland.

Early Repayment Charge (ERC): A fee some lenders charge if you repay or overpay more than your deal allows, or remortgage, during a fixed or discounted period.

Fixed-rate mortgage: A mortgage where the interest rate is locked for a set period (commonly two to five years), so monthly payments stay the same during that time.

Help to Buy (Scotland): A past Scottish Government equity-loan scheme that helped buyers purchase a new-build home with a smaller deposit. Availability of such schemes changes over time.
Home Report: A pack the seller provides for most Scottish homes, containing a single survey, a valuation, an energy performance certificate and a property questionnaire.

Land and Buildings Transaction Tax (LBTT): The tax paid when buying property or land in Scotland above a threshold. Administered by Revenue Scotland and charged in progressive bands.
LIFT (Low-cost Initiative for First Time buyers): A group of Scottish Government shared-equity schemes designed to help lower-income and first-time buyers purchase a home.
Loan-to-value (LTV): The size of your mortgage as a percentage of the property value. A lower LTV usually means access to lower interest rates.

Missives: The series of formal letters exchanged between buyers' and sellers' solicitors in Scotland that together form the binding contract of sale.

Note of Interest: A message from a buyer's solicitor to the seller's agent registering interest in a property, often prompting the seller to set a closing date.

Offers over: A marketing term indicating the seller expects bids above the stated price, typically the Home Report valuation.
Overpayment: Paying more than your required monthly amount to reduce the balance faster, cutting total interest and potentially shortening the term.

Remortgage: Switching your existing mortgage to a new deal or lender, usually to secure a better rate, release equity or change the term.
Repayment mortgage: A mortgage where monthly payments cover both interest and capital, so the balance reduces to zero by the end of the term.

Standard Variable Rate (SVR): The default interest rate a lender charges once an introductory fixed or discounted deal ends. It can change at the lender's discretion.
Stress test: A check lenders apply to ensure you could still afford repayments if interest rates rose, used as part of the affordability assessment.

Annah answers Scotland-specific mortgage questions instantly — free, no signup needed.