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Glossaries

Term Definition
Capital
Accumulated wealth; normally referring to the Value of a Property minus any loans/mortgage secured against it.
Capital And Interest Mortgages
the capital and interest elements of the loan are paid off with each monthly instalment, so that the balance reduces over time. Also known as a capital and interest mortgage.
Capital Appreciation
How much the property is likely to increase in value over the course of 12 months.
Capital Expenditure
Cash outlay or Investment in permanent assets such as land & property
Capital Gains Tax
A tax payable on the capital of an asset when taken as profits. Only relevant to property other than you own home.
Capital Repayment
There are 2 ways of repaying a mortgage; capital repayment or interest only.

With a capital repayment mortgage, the capital and interest elements of the loan are paid off with each monthly instalment, so that the balance reduces over time. At the end of the mortgage term the balance will be nil
Capital Rest Period
This is to do with the regularity with which the Lender calculates the outstanding balance on any given mortgage and hence the size of the monthly repayments. This figure is normally calculated annually, monthly or daily.
Capped Rate
The rate of interest your lender agrees will be the maximum during a specified period of time. This is period of time is often the first 1-3 years of the mortgage starting, but it can be for longer.
Capped Rate Mortgage
A Mortgage product that has a capped rate applied, therefore the interest will have a maximum it can be during a specified period of time. During the capped rate period the interest rate can fall below the capped rate but will never rise above it.
Cash Back Mortgage
A mortgage where the lender will refund back a sum of money to the borrower. This will normally be refunded back on completion and will either be a percentage of the load or a flat figure and normally means the borrow is tied in, either to a duration, rate or both.
Cash On Cash Return
Ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage
Cashback
Rebate to purchaser upon completion of a sale
Cashflow
The net disposable income from an investment, determined by deducting all operating and fixed expenses from the gross income. When expenses exceed income, a negative cash flow results.
Chain
In property, a chain refers to a sequence/chain of buyers and sellers all trying to buy a property while at the same time potentially trying to sell their own property.
Chain Free
This is simply when the owner of a particular property does not need to sell their own in order to buy a new property; hence they are ?chain free.? First time buyers are often chain free.