Term

The Term of a loan or mortgage agreement is simply the length of time you agree to pay the loan off over.

Fixed term deals guarantee that you'll pay off the loan over the specified time period, while a variable term loan may allow you to increase the term by taking payment holidays, or decrease it by making overpayments.

If you pay off a fixed term loan before the agreed term is up, you might be liable for a redemption charge or settlement fee.