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| Accident, Sickness and Unemployment (ASU) This is an insurance policy which pays an income if you are unable to work for an extended period. Some plans cover against unemployment/redundancy and for the self employed, the “unemployment/redundancy” aspect may be replaced with “hospitalisation” cover. Also known as Mortgage Payment Protection Insurance (MPPI). Agreement in Principle (AIP) Agreement from the lender that the mortgage is approved subject to satisfactory references and a satisfactory valuation report being received. Also known as Decision in Principle (DIP) Aggregator System See mortgage sourcing system. Annual Percentage Rate (APR) The APR is the total charge for credit. It is the standard way (laid down by the Consumer Credit Act 1974) of working out the true interest rate. A way of comparing the cost of credit; includes the interest rate and other costs. Arrangement/Administration (Completion) Fee This is a fee that the lender charges an applicant when taking out a mortgage and is charged to cover the administration costs of setting up the loan. Lender’s usually allow this fee to be added to the loan. |