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Accident, Sickness and Unemployment Insurance (ASU)

In the event of an accident, sickness or involuntary unemployment befalling the borrower, this insurance will cover their mortgage repayments. Some lenders attach mandatory insurance cover to their most attractive rates, although this is increasingly uncommon. Also known as Mortgage Payment Protection Insurance (MPPI).

Additional Security Fee

See Higher Lending Charge

Adverse Credit

This is an umbrella term used of applicants with poor credit history. This may include mortgage arrears, defaults, County Court Judgments (CCJ's), bankruptcy, Individual Voluntary Agreements (IVA's) and house repossession. Borrowers with elements of adverse credit are offered higher rates than standard Full Status applicants are, usually with terms and conditions relating to the extent of their adverse credit history. Often, adverse credit mortgages are Libor-linked rates.