A to Z of Finance (Jargon Buster) - The Letter F

The world of Finance is full of buzz words and Jargon. In this section I'll translate a whole range of finance terms so you won't get caught out.

Index A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

First Time Buyer

If you are looking to buy your first home with your first mortgage, you would be known as a first time buyer. There are first time buyer mortgages available aimed at buyers new to the market.

Fixed Rate Mortgage

A fixed interest rate is set on a mortgage for an agreed period of time. The benefit of a fixed rate mortgage is, if interest rates were to rise above the set interest rate then you still pay only the set rate no higher. The disadvantage is should interest rates fall below the set rate you would still have to pay the set rate and nothing lower.

Flexible Mortgage

This type of mortgage allows flexibility of repayments. Normally, a borrower will be allowed to overpay, underpay or take payment holidays. You can sometimes offset savings against the mortgage to help with payments. Certain flexible mortgages will offer daily interest rates so any overpayment will show benefits straight away.

Freehold

A term which means you are the absolute owner of the property and the land it lay on. When you have paid your mortgage you would have the freehold to your property.