Glossary

AER

AER means ‘annual equivalent rate’. It tells you how much interest you’d earn if you put money in an account and left it there for a full year. It includes how often the interest is paid and assumes any interest paid during that year is added to the balance and earns interest. ( It is designed to make it easy for you to compare savings products.)

Annualised Rate

The Annualised Rate tells you how much an overdraft would cost you over a year, expressed as a percentage. It includes the interest you’d be charged, (including interest on that interest), but doesn’t include any fees or other charges.

APR

APR stands for ‘annual percentage rate’. It aims to give you a more accurate idea of how much you’re being charged when you borrow money, allowing you to compare the total cost of borrowing money for different types of loan, and lengths of time.

APRC

APRC stands for ‘annual percentage rate of charge’. It aims to give you a more accurate idea of how much you’re being charged when you borrow money, allowing you to compare the total cost of borrowing money for different types of loan, and lengths of time.

Danske Bank Card Exchange Rate (UK)

The Danske Bank Card Exchange Rate (UK) is the Payment Scheme Reference Exchange Rate which applied on the date that the transaction was received by the Payment Scheme. This rate is subjected by us to average weighting so that the exchange rate used for all transactions processed by us on that date are equalised. Transactions can be processed by us on non-business days. The statement 'entry date' for a transaction that is processed on a non-business day will be the next business day. We will apply the Danske Bank Card Exchange Rate (UK) when the transaction is processed by us.

The Payment Scheme Reference Exchange Rate is the exchange rate set by MasterCard (which applies to MasterCard and debit cards) or Visa (depending on the payment scheme logo displayed on Your Card) and which is prevailing at the time your transaction was received by the Payment Scheme.

EAR

EAR stands for 'effective annual rate' and allows you to compare the true cost of borrowing across different products where interest is not applied annually (maybe daily, weekly, or monthly).

It takes into consideration the interest rate charged and how often the interest is applied to the account. It does not include any fees related to overdrafts.

Equity

This is the difference between the market value of your home and the amount you owe your mortgage provider. Your equity is the money you’ll receive after paying the mortgage in full if you were to sell your home.

Execution only

Execution only means we won't offer any advice or recommendations, and won't assess how suitable your chosen mortgage is for you.

You also won't benefit from any of the additional regulatory protections that you would have if you'd asked for our advice.

Foreign Currency Mortgages

We only provide mortgages in sterling but we’ll consider applications for Fixed Rate and Tracker Home Loan residential mortgages if your income is in Danish krone (DKK), Euro (EUR) or US Dollar (USD).

The rate used to convert the relevant Foreign Currency to sterling will be the ‘Customer sells foreign currency rate’. Fluctuations in the exchange rate will affect your mortgage repayments if your income is in a currency other than sterling. You can view our Foreign Exchange Rates.

Gross Interest Rate

The gross interest rate is the rate of Interest we pay. We do not deduct tax from interest we pay. Depending on your personal circumstances, you may have to pay tax on your interest. There are more details available in the savings section of our website.

Guarantee and indemnity

A Guarantee is an agreement where one or more persons agree to make the payment of a sum of money in the event that another party is unable to repay their borrowing. If this is required for a personal loan application, the security fee is £30.

ISIN

International Securities Identification Number (ISIN) is a unique 12-character, alphanumeric code used to identify a tradeable security or financial instrument (share, bond, warrant etc) and provides for uniform recognition and tracking of international securities transactions throughout the trading to settlement process. For example, the ISIN for Marks & Spencer PLC is GB0031274896.

Loan to Value (LTV)

A percentage figure that tells your mortgage provider how much of your property’s value you want to borrow from them. This will be 100% minus whatever deposit you have. For example – if you have saved 5% deposit, your loan to value will be 95%.

Generally speaking, the lower the LTV, the less interest you’ll pay on your mortgage.

Overpayments/Overpay

If you have a Danske Tracker Home Loan or Standard Variable Rate mortgage you can make overpayments and add lump sums whenever you like, with no penalty.

If your Danske Bank Fixed Rate mortgage illustration is dated before 4th February 2019, you can make Overpayments but these will incur Early Repayment Charges.

If your Danske Bank Fixed Rate mortgage illustration is dated 4th February 2019 or later, you can make Overpayments up to a specified amount without incurring Early Repayment Charges. Find out more.

Payee

The person to whom a payment such as a cheque is made payable or the owner of an account to which a payment is to be credited (which ever applies)

Payer

The owner of an account from which a payment is to be debited

Per annum (p.a.)

Per annum means yearly, every year, annually.

Portable

If a mortgage is portable, you may be able to transfer any Special Rate Terms to a new loan secured by different property eg if you move home. All lending is subject to the Bank’s lending, affordability and eligibility criteria.

Safety Limit

When you take a Danske Re:pay account, you have an agreed overdraft limit which you cannot exceed. This is known as a Safety Limit and is reduced each month to ensure that your mortgage is repaid by the end of the agreed term. With Danske Re:pay we don’t set a fixed repayment amount or repayment frequency, but you must stay within your Safety Limit.

Tax-free

Tax-free means that interest is paid free from income tax. This position may change in the future.

Text Message

To help you keep up to date with your account balance, we can send you a text message to let you know when your balance falls above or below a level you have set yourself. This will help you know when a payment (such as your salary) is in your account or when you are getting near a debit balance or your overdraft limit on your account. We do not charge for this service but charges from your service provider may apply.

Trusted Beneficiaries

Where a merchant, or beneficiary, is trusted by the payer they can be added to a list sometimes called a ‘whitelist’ or a ‘trusted beneficiaries’ list. The merchant becomes a trusted beneficiary. Strong customer authentication is applied when a new beneficiary is created or amended, but not at each transaction.

Value Date

Means the date by which We take account of any item paid into Your Account, or any item paid out of Your Account, when We work out any relevant interest.