Mortgages can be a confusing subject even if you've had one for a while.

To help you get a thorough grounding of the subject, we've put together simple definitions to all the main mortgage terms.

Early Repayment Charge
An early repayment charge, or redemption penalty as it's sometimes known, is the fee you must pay if you wish to end your mortgage before the initial contract period has expired. In many cases the charges can be very high - six months worth of your interest payments is not uncommon.

Higher Lending Charge
A Higher Lending Charge is levied by the lender where the amount borrowed exceeds a specific percentage of the property’s value. It is used by the lender to insure itself against losses should the property become repossessed. It does not provide the mortgage holder with any such protection. Even after repossession, the borrower will remain liable for any sums owing.

Valuation Fee
This is the amount charged for the lender's valuation of the property. Increasingly, lenders will also include an administration fee as part of the valuation fee. The valuation is only for the lenders benefit and does not represent a detailed inspection. When buying a house, it is recommended that you have a ‘Housebuyers Report’ or a ‘Full Structural Survey’ carried as they provide a more thorough assessment of the property.

Booking Fee
A booking fee is paid to reserve funds on a mortgage product that has limited funds available. Booking fees are usually non-refundable, so if the mortgage applicant cancels before completion the fee will not be reimbursed.

Arrangement Fee
An arrangement fee is usually charged on completion of the mortgage and is common on fixed and capped rate mortgages. They are typically added onto the mortgage so the borrower doesn't have to pay the charge immediately or in one lump sum.

Insurance
Mortgage lenders require that the property is adequately insured with a suitable Buildings Insurance Policy. However, another form of insurance that is increasingly common in the industry is a Mortgage Payment Protection Plan. This policy offers income protection should you become unemployed, seriously ill or made redundant.

Cashback
This is where the lender will offer a lump sum of cash once the mortgage has been taken out. Amounts vary from lender to lender and can be in the form of a flat fee or a percentage of the loan. Cashback will usually only be offered where the mortgage is locked-in for several years with heavy early repayment charges.

County Court Judgements (CCJ)
This is an ruling by a County Court against an individual who has not managed their debt payments. The record will be held on the person’s credit history for the next seven years. If you have a CCJ you will find it harder to get a mortgage and certainly be faced with higher interest rates.

Arrears
Arrears describes the amount (either pounds or months) that the borrower is behind in their mortgage repayments schedule.