AA Mortgages are provided by Bank of Ireland UK
Your home may be repossessed if you do not keep up repayments on your mortgage.
Definitions: a guide to the terms we use
Approval in principle (AIP)
An Approval in Principle, also known as a Decision in Principle will provide you with an indication of what you may be able to borrow, you will be required to provide details of your income and outgoings and a credit check may be requested.
Annual Percentage Rate Of Charge (APRC)
This shows the overall cost of borrowing, taking into account the term, interest rate, and any fees or charges to reflect the total cost of the mortgage. You can use it to compare different mortgage offers.
Fixed rate mortgage
These mortgages fix the interest rate you pay for an agreed promotional period. They revert to a different variable rate at the end of the fixed period.
Loan to Value (LTV)
This is the ratio between the mortgage loan and value of your property, known as Loan to Value, and will affect the range of products available to you. As a rule, a lower LTV will entitle you to lower rates.
A mortgage that allows you to transfer the interest rate and early repayment charge conditions on your existing balance to your new property. This is subject to a new offer being made based upon the lender’s current criteria. If you don’t need to borrow extra amounts your mortgage product can remain the same.
This is a fee charged on some mortgages as part of the product. It can be paid upfront or added to the loan. If you add it to your mortgage it will increase your outstanding balance and interest will be charged for the duration of the mortgage.
This is an illustration of a typical mortgage and its total cost. The Representative Example is for illustration purposes only and your actual costs and monthly repayments will vary depending on your mortgage.
Only available on certain products, please refer to the AA mortgage range and rates table, or PDF link on the AA Mortgages website for further details.
Standard legal fees
Standard legal fees are basic solicitor fees, which does not include additional legal work or charges that may need to be carried out. For re-mortgages the lender will pay these fees through their nominated solicitors – please see your lenders terms and conditions for further details.
Standard Mortgage Valuation (also known as Lender’s Valuation) and Valuation Fee
The main purpose of this report is to ensure that the property is worth the amount that you are borrowing. The lender needs to decide whether to lend on the property by assessing its condition and likely value. The Valuation Fee is the cost for this basic assessment to be carried out on a property. You need to be aware that this type of report does not go into great detail about the property's condition and in some cases the lender may instruct an automated valuation, which will not include a site visit and you will not receive a written report. You may want to get a more detailed report so you are fully aware of any structural issues for your own purposes, which will come at an additional cost.
Standard Variable Rate (SVR)
A variable rate of interest set by a lender, which many mortgage products change to when their Promotional Period ends. Changes to a Standard Variable Rate are made at a lender’s discretion and are not directly linked to an external rate.
All mortgages are subject to status and lending criteria. Written illustrations are available on request.
Borrowers must be aged 18 or over.
AA Financial Services Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Fanum House, Basing View, Basingstoke, Hampshire RG21 4EA. Registered in England and Wales (912211).
AA Financial Services Limited (AAFS) acts as a Home Finance intermediary and introduces customers to Bank of Ireland (UK) plc only as its exclusive Home Finance provider.
Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc. Bank of Ireland (UK) plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
AA Home Membership is underwritten by Acromas Insurance Company Limited, registered number 88716 (Gibraltar), and arranged by Automobile Association Insurance Services Limited.
Automobile Association Insurance Services Limited is an insurance intermediary which is authorised and regulated by the Financial Conduct Authority. Registration number 310562.
You can check the Financial Services Register on the FCA's website.
Registered office: Fanum House, Basing View, Basingstoke, Hampshire RG21 4EA. England and Wales. Company registration number: 241412.