Skip to main content

Mortgage London

Logo
Menu
FIND ME A MORTGAGE

Resources

/

Glossary

/

Mortgage Retention

Mortgage Retention

Portrait of Justin Whitelock, founder of Mortgage London, standing in a park

By Justin Whitelock

Founder of Mortgage London (a trading style of City Finance Brokers Limited, authorised and regulated by the Financial Conduct Authority, FCA No. 766295)

Where a lender holds back part of the mortgage advance, usually until specific works on the property have been completed to the lender’s satisfaction.

Related glossary terms

Withholding Tax

Tax deducted at source from a payment by the payer and passed to HMRC, applying to certain overseas income payments.

Beneficial Interest

A person’s underlying economic interest in property, potentially differing from legal title, particularly relevant in unequal contributions or trust arrangements.

Exchange of Contracts

The legal stage where buyer and seller become contractually committed to the purchase, with buyers typically paying an exchange deposit.

Interest Coverage Ratio (ICR)

A buy-to-let affordability measure that compares the expected rental income with the mortgage interest cost, typically around 125–145% depending on circumstances.