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IFA

Independent Financial Advisor.

Individual savings account (ISA) mortgage

An interest only mortgage linked to an Individual Savings Account fund, which is designed to pay off the loan at the end of the period.

Interest charges (mortgage)

The charges that are made on a loan, calculated as a percentage of the amount borrowed.

Interest-only mortgage

There are broadly two styles of repaying a mortgage. With an 'interest only' mortgage you pay only the interest on the loan throughout the term of the mortgage, The capital remains the same throughout the mortgage term. At the end of the term you must be able to pay off the capital, so you must pay regularly in to a savings plan over the term of the mortgage so that you build up a lump sum large enough to pay off all the capital.

If you choose a 'capital and interest repayment' mortgage, you pay the interest as well as the capital to the mortgage lender over the whole term of the mortgage. This is all included in your monthly repayments. With this style of repayment, you are guaranteed to have repaid the mortgage in full at the end of the term.

Inventory

A list which describes the condition of furnishings and contents of a leased property at the commencement of the tenancy in order that any dilapidation during the tenancy can be identified.