| A |
| |
Adverse Credit
|
|
|
|
|
Agricultural Tie - a covenant against a property that
prevents anyine other than a person that work in agriculture
from occupying a property
|
|
|
|
|
Annual Interest
|
|
|
|
|
APR - Annual Percentage Rate. A rate that takes into account
all costs associated with a mortgage (interest, fees, penalties)
and is calculated over the life of the mortgage |
|
|
|
|
Arrears - missed payments on a mortgage
|
|
B |
| |
Bank of England - the organisation ultimately in control of
the country's finances
|
|
|
|
|
Base Rate - the rate charged by a lender before they add or
reduce a marging to determine the rate a mortgage will be
charged at
|
|
|
|
|
Basic Survey - lets a lender know of a property is suitable
security for a mortgage. It will only detail the most obvious
defects in a property
|
|
|
|
|
Bridging Loan - a temporary loan not secured against a
property that enables a person to move house before they sell
their property
|
|
|
|
|
Buy to Let
|
|
C |
| |
Capital & Interest
|
|
|
|
|
Capped - the maximum rate that a mortgage can rise to during
the capped period.
|
|
|
|
|
Cash Back - money not secured agaisnt a property that is
advanced to you by the lender. You might choose cashback instead
of a discount off the lenders standard variable rate
|
|
|
|
|
Collar - a restriction on how far a mortgage rate can
reduce. The rate might be higher initially but could fall until
it reaches the level specified as the collar
|
|
|
|
|
Completion - when money is transferred from you to the
seller
|
|
|
|
|
Conveyancing - the work carried out by a solicitor to
transfer ownership of a property
|
|
|
|
|
Credit Check - a search carried out by a lender to determine
your credit worthiness
|
|
D |
| |
Daily Interest
|
|
|
|
|
Deeds Discharge
|
|
|
|
|
Deeds Release Fee - a fee charged by lenders to release you
from a mortgage
|
|
|
|
|
Deposit - the differnece between what you pay for a property
and the mortgage secured on it
|
|
|
|
|
Disbursements - third party costs incurred by a solicitor
carrying out the conveyancing on a property
|
|
|
|
|
Discount - a reduction of the lenders standard variable
interest rate
|
|
E |
| |
Early Repayment Charge
|
|
|
|
|
Endowment
|
|
|
|
|
Equity - the difference between the value of a property and
the mortgage secured on it
|
|
|
|
|
Equity Release
|
|
|
|
|
Exchange Contracts - an event when solicitors commit to the
purchase and sale of a property.
|
|
|
|
|
Extended Tie - when a redemption penalty remains in place
after special terms on a mortgage expire. A 2 year fixed with
penalties for 3 years is said to have an extended tie
|
|
F |
| |
Feudal - property ownership term in Scotland similar to
leasehold.
|
|
|
|
|
Fixed
|
|
|
|
|
Flexible Mortgage - the ability to overpay a mortgage and
immediately benefit from a saving in interest
|
|
|
|
|
Flying Freehold - when a part of one property overhangs the
part of another. Commonly seen in upstairs flats built over an
alleyway owned by someone else.
|
|
|
|
|
Foreign Currency Mortgage - a mortgage in a currency other
than sterling.
|
|
|
|
|
Freehold - when ownership includes both the building and
land
|
|
|
|
|
Full Structural - the most comprehensive survey availabe and
will detail all the problems visible in a property.
|
|
|
|
|
Further Advance - further borrowings secured against a
property. It is effictively an increase of the mortgage
|
|
G |
| |
Gazumping - when a seller demands more than originally
agreed to sell
|
|
|
|
|
Gazundering - when a buyer demand that they pay less than
originally agreed to pay
|
|
|
|
|
Ground Rent - a payment that usually covers the upkeep of
communal land where property is leasehold
|
|
|
|
|
Guarantor - a person who provides assurances that they will
meet the mortgage payments if the mortggagee cannot. This is a
legally binding agreement
|
|
H |
| |
Higher Lending Charge - a charge made by the lender whn
borrowing exceeds a certain level (typically 75% of the
property). It is effectively an insurance premium to cover the
lender if they lose money should they have to repossess the
property
|
|
|
|
|
HIP - Homebuyer Information Pack, a report that provide
comprehensive information about a property to a person that is
about to buy it. It includes an energy efficiency rating
|
|
|
|
|
Homebuyers Report - Amid-range report that details the value
of a property and provides more detailed information about the
state of the property and the arae in which it is located
|
|
I |
| |
Income Multiples - a multiplication of a persons income that
determines how much a LENDER WILL LEND
|
|
|
|
|
Initial Rate - the rate charged at the start of a mortgage
and will last for a specific period before reverting the the
bank's standard variable rate
|
|
|
|
|
Interest Only - payments to the lender that exclude any
capital element - the mortgage will not reduce when interest
only is used. A repayment plan usually runs alongside
|
|
|
|
|
ISA - Individual Savings Account. A tax efficient investment
|
|
J |
| |
Joint Tenants
|
|
K |
| |
Key Features - a document that details the basic terms and
conditions of a mortgage
|
|
|
|
|
Key Worker
|
|
L |
| |
Land Registry - the organisation that collects data relating
to property ownership.
|
|
|
|
|
Leasehold - ownership of property that excludes ownership of
the land upon which it stands
|
|
|
|
|
Lessee - the person that rents the property and is subject
to the terms of the lease
|
|
|
|
|
Lessor - the person that owns the property and grants
a lease
|
|
|
|
|
LIBOR - London Inter Bank Overnight Rate. The interest rate
charged by banksfor borrowing between each other
|
|
|
|
|
Lifetime Mortgage
|
|
|
|
|
|
Links |
|
|
|
|
Loan to Value - the percentage that a mortgage represents of
the value of a property. A £70,000 mortgage on a £100,000
property is said to be 70% LTV
|
|
|
|
|
Local Search - information gathered by a soliciotr that
details any proposals to build or alter premises in the vacinity
of the property you are buying
|
|
M |
| |
Mortgage - a loan secured against a property
|
|
|
|
|
Mortgage Broker |
|
|
|
|
|
Mortgage Indemnity Guarantee
|
|
|
|
|
Mortgage Offer - a document provided by a lender detailing
the terms of the mortgage that will is to be granted
|
|
|
|
|
Mortgagee - the person or persons that is legally
responsible for the mortgage (the person that borroed the money)
|
|
|
|
|
Negative Equity - when a mortgage is greater than the value
of property on which it is secured
|
|
N |
| |
NHBC - a warrasnty that lasts for 10 years and guarantees a
building against major defect
|
|
O |
| |
Offset
|
|
P |
| |
Portable - an option to move your mortgage to another
property on the same terms
|
|
|
|
|
Principle - the capital element of a mortgage (the part you
repay if you have a repayment mortgage, not the interest
element)
|
|
|
|
|
Proof of Income - douments that prove your income to a
lender (e.g. payslips)
|
|
R |
| |
Rebuild Cost - the cost to rebuild a property, usually less
than the purchase price because much of the value of a property
is in the land
|
|
|
|
|
Re-mortgage - to change the terms of your mortgtage (e.g.
borrow more or switch to another lender)
|
|
|
|
|
Rent a Room
|
|
|
|
|
Restrictive Covenant
|
|
|
|
|
Retention
|
|
S |
| |
Self Certification |
|
|
|
|
Shared Equity
|
|
|
|
|
Stamp Duty
|
|
|
|
|
Subsidence - movement in the ground that can affect the
foundations of a property
|
|
|
|
|
SVR - Standard Variable Rate, the rate a lender charges
after any special deal come to an end
|
|
T |
| |
Tenants in Common
|
|
|
|
|
Title Deeds - a document that details who owns a property
|
|
|
|
|
Tracker
|
|
V |
| |
Valuation - a report that tells the lender how much a
property is worth
|
|
|
|
|
Variable Rate - an interest rate that can go up or down
according to market movements
|
|
|
|
|
Vendor - the person selling a property
|
