Jargon Reference Guide


Early Redemption Charge (ERC)

A charge made by the lender if the borrower terminates a mortgage in advance of the terms of that particular mortgage. This usually occurs when the borrower has benefited from reduced payments or cash back in the early period of a mortgage.

Endowment Mortgage

Interest-only repayments combined with monthly premiums into an endowment policy designed to pay off the loan at the end of the term.


The difference between the value of a property and the amount of mortgage owed.


The initial sum paid on an insurance claim.

Exchange of Contracts

The point at which signed contracts are physically exchanged, legally committing the buyer and seller to the purchase and sale of a property at an agreed price.