| A.S.U. |
|
Accident,
Sickness, Unemployment policy you pay each month for financial
cover should you be off work |
| ADDITIONAL
SECURITY |
|
When lending
exceeds a certain Loan to Value lenders may require additional
security |
| ADMINISTRATION
CHARGE |
|
Some lender
will reserve a proportion of this fee charged for the valuation
to cover their own costs. |
| ARRANGEMENT
FEE |
|
Fee charged
by lender for setting up the loan. May be payable upfront, upon
completion, or maybe added to the loan |
| ARREARS |
|
Mortgage
or loan payments that have not been made by the due date in
accordance with the contractual agreement |
| BASIC
ANNUAL INCOME |
|
The amount
of money earned that is guaranteed regardless of the individual
or company performance |
| BROKER |
|
An
intermediary who finds and places customers who needs a loan
or protection with a provider |
| CAPITAL |
|
The principal
part of a loan, ie: the original amount borrowed |
| CAPITAL
& INTEREST LOAN |
|
You pay
off the interest & capital over the life of the loan. In
the early years you pay mostly interest |
| CASHBACK
MORTGAGE |
|
On completion
of your new mortgage, you get a cheque for the agreed amount,
remember it is your money, your paying for it |
| C.C.J. |
|
County
Court Judgement is a debt in the county court.. Once the ruling
has take place, it last on your credit file for 6 years |
| COMPLETION |
|
Is the
final act of legal transfer of ownership of property |
| CONDITIONAL
INSURANCE |
|
An insurance
policy that has to be taken out as a condition of obtaining
a loan |
| CONTENTS
INSURANCE |
|
Goods within
your home ie: furniture, clothing, TV, personal possessions
etc. (Not the building ie bricks, roof, etc) |
| CONVEYANCING
FEE |
|
Fee charged
by solicitor or licensed conveyancer for legal work in transferring
of ownership, + stamp duty, + land registry fee |
| CREDIT
CHECK |
|
All lenders
will check your credit history, with credit agencies such as,
Experian, Westcott Date,etc. to assess your application |
| DEBT
CONSOLIDATION |
|
Replacing
a number of existing loans with a single loan from a new lender |
| DECISION
IN PRINCIPLE |
|
You meet
the first part of the process for a loan, subject to more details
being collected later |
| DEFAULTS |
|
If an individual
fails to make payments on a credit agreement, or fails to comply
with their creditors requirements, you have "defaulted" |
| DEPOSIT |
|
Money paid
upon exchange of contracts. Also the borrowers equity in the
property may be referred to as the deposit |
| DISBURSEMENTS |
|
Costs incurred
by solicitors in carrying out their work which they will re-charge
to their clients |
| DISCHARGE
FEE |
|
Fee charge
by lender for releasing its charge over a property following
the redemption of a mortgage |
| DISCOUNT
RATE |
|
The mortgage
interest rate is lower than the lenders current normal standard
variable rate (SVR) shown as a percentage for a set period |
| EARLY
REDEMPTION FEE |
|
Charge
levied by the lender for withdrawing from a mortgage before
a given date specified in the mortgage condition |
| EQUITY |
|
This is
the amount of money you have if you sold your home |
| FIRST
CHARGE |
|
A lender
with a first legal charge over a property has a first call on
any funds available from the sale of the property |
| FIXED
RATE |
|
A loan
where the initial payments are based on a certain interest rate
for stated period ( ie 4.75% for 2 years) |
| FREEHOLD |
|
A freehold
property is one where you are the outright owner of the property
including the land in sits on |
| GENERAL
CONDITIONS |
|
The set
of standard conditions that apply to a mortgage |
| GUARANTEED INCOME |
|
Any income
received on top of your basic salary that is not part of your
normal basic pay |
| HOLIDAY
HOME |
|
A
property which will not be your main address or place
of residence |
| HOUSING
ASSOCIATION |
|
A society,
trustees, or company which is established for the purposes of
providing, homes, similar to council renting |
| ILLUSTRATION |
|
Example
of the monthly costs of a mortgage & other expenses associated
with the loan. |
| INITIAL
RATE |
|
This is
the rate of interest you pay when you first begin to repay your
mortgage |
| INTEREST
ONLY MORTGAGE |
|
The monthly
repayment covers only the interest element of the loan leaving
the capital outstanding at the end of the loan term |
| JOINT
APPLICATION |
|
Mortgage
or loan application involving more than one person as the borrower |
| KEY
FACT ILLUSTRATION |
|
A requirement
given to all clients to show costs, fees, service, repayment
sum & regulator details |
| LAND
REGISTRY |
|
A record
of property. Ownership & the mortgage is registered in a
central register at HM Land Registry |
| LEASEHOLD |
|
The property
is not owned directly by the property purchaser & is held
under a lease for a fixed period . |
| LEGAL
CHARGE |
|
This legal
document grants a security over your property to the lender |
| LIBOR |
|
London
Interbank Offered Rate : is the rate which banks notionally
buy & sell money to each other, some loans are linked to
LIBOR rates |
| LIFE
INSURANCE |
|
Policy
payable upon death of the named insured, usually referred to
as life assurance |
| MORTGAGE
DEED |
|
Legal document
securing a loan on the property |
| MORTGAGE
CONSULTANT |
|
Our Consultant/Adviser
is the person who is on hand to find & help complete the
mortgage process, for you from start to finish |
| M.I.G. |
|
Mortgage
Indemnity Guarantee also known Lender Higher Loan Charge: An
insurance policy paid by the borrower to protect lender |
| MORTGAGE
TERM |
|
Length
of time before the mortgage/loan must legally be re-paid |
| MULTIPLIERS
(INCOME) |
|
Factor
applied to a prospective borrowers income to calculate how much
can be borrowed |
| NEGATIVE
EQUITY |
|
When the
amount loaned against a property is in excess of the market
value of the property |
| NET
PROFIT |
|
The
income of a company or self employed business after making full
allowance for the cost/ expenses |
| NON
STATUS |
|
Loan granted
without making enquiry's as to the borrowers income or credit
history |
| OPEN
MARKET VALUE |
|
Value of
a property on the basis of a willing buyer & willing seller
to agree on a reasonable price |
| OTHER
INCOME |
|
Income
in addition to basic annual salary or in the case of self-employed
annual net profit |
| OUTGOINGS |
|
Existing
liabilities-your debts & expenses such as hire purchase,
personal loans, school fees etc. |
| PART
and PART |
|
A mixture
of both Capital & Interest repayment plus Interest only
repayment method |
| PAYMENT
PROTECTION |
|
Similar
to another insurance see A.S.U. |
| PAYMENT
SCHEDULE |
|
Schedule
of monthly payments under the loan |
| PORTABLE
MORTGAGE |
|
Describes
a mortgage that can be transferred from one property to another
at the discretion of the lender |
| PRINCIPAL |
|
The original
amount of the loan, and capital. |
| QUALIFYING
RULES |
|
Inland
Revenue rules which define the condition that must meet for
the proceeds of a life assurance policy to be taxed when paid |
| QUOTATION |
|
Detailed
document itemising costs,fees,repayment sum etc of the proposed
loan.Given in the (KFI) Key Features Illustration |
| REDEMPTION |
|
Paying
off the loan.Some mortgage products the lender may charge a
sum, if you are still within the "deal" time |
| REFINANCING |
|
Rearranging
borrowing with a different lender, often to obtain more attractive
terms or to raise fresh capital |
| REGULATED
LOAN |
|
A loan
under £25,000 regulated under the terms of the Consumer Credit
Act |
| REMORTGAGE |
|
Is when
you decide to switch your existing mortgage without actually
moving house |
| REPAYMENT
MORTGAGE |
|
You pay
part interest and part capital repayments to the lender each
month & in this way capital is reduced until the loan is
repaid |
| RIGHT
TO BUY ( RTB
) |
|
Option
for council tenants to purchase the property in which they reside,
often as a discount price |
| SECOND
CHARGE |
|
A legal
charge, behind a first charge, which is given as a guarantee
to secure the second borrowing |
| SELF
- CERT tified |
|
This applies
where you cannot show evidence of total income on pay slips,
due to bonuses, seasonal work, or 2nd income |
| STAMP
DUTY |
|
This is
a Government Tax you'll need to pay on property sales over £
125,000 (correct April
2006) |
| STATUS |
|
The credit
worthiness or otherwise of a potential borrower |
| STRUCTURAL
SURVEY |
|
A very
Detailed survey of the building carried out by a Structural
Engineer or Chartered Building Surveyor |
| SUM
ASSURED |
|
The maximum
amount payable under a policy of insurance ie. Total sum amount
due on death. |
| TERM
ASSURANCE |
|
Simplest
form of life cover : Should be the minimum any family homeowner
should have |
| TRACKER
MORTGAGE |
|
A
loan that tracks the Bank of England base rate, ie tracker loan
1.75 above BoE (4%) pay 5.75% could rise or fall each month |
| TYPICAL
APR |
|
Example
of the annual percentage rate for a given product |
| UNDERWRITING |
|
The process
by which the ability of a prospective client is assessed for
a loan or insurance |
| UNENCUMBERED |
|
Property
that is owned without borrowing or other legal charge over it |
| VALUATION |
|
A BRIEF
inspection of a property for mortgage purposes only, confirming
suitability for the LENDER. |
| VALUATION
FEE |
|
Fee paid
by the prospective borrowers for the lender's inspection of
the property. |
| VARIABLE
RATE |
|
Interest
rate that will very over the term of the loan, normally in line
with the general cost of borrowing |
| VENDOR |
|
The vendor
is the name given to the home owner selling their property |
| WITH
PROFIT POLICY |
|
This is
where the premiums of the plan entitle the holder to share in
the declared profits of the plan fund involved |
| XENO
MORTGAGE |
|
Foreign,
other, oversea mortgage, using different currency & interest
rates. |
| YARN |
|
Something
an Estate Agent may tell you |
| YES
WE CAN |
|
Something
an Independent Qualified Mortgage Adviser may tell you |
| ZERO
BALANCE |
|
Great!!!
we all wish to see on our mortgage and credit card statement |
| |
|
|
0870
740 8005
