Listed below is a guide to mortgage terms. It is a useful list of definitions of mortgage terms that may or may not be familiar to you.
Apr
This stands for Annual Percentage Rate. It takes into account all fees and other costs in connection with the mortgage as well as the lenders interest rate.
Advance
This is the actual amount of money that you borrow including any additional fees that have been added.
Base Rate
The UK 's core interest rate which is set by the Bank of England.
Bridging Loan
A temporary loan that enables you to complete the purchase of a new home before completing the sale of your existing property.
Capped Rate
These mortgages have a ceiling above which your payments will not rise.
Completion
The point at which the money to buy your new home is released to the seller and ownership is transferred to you.
Conveyance
Legal document which transfers ownership of unregistered freehold land.
Disbursements
The fees your solicitor has to pay such as; stamp duty, land registry, search fees, etc which will be added to your solicitor's bill.
Discounted Variable Rate
For a set period the interest rate charged will be a set percentage less than the standard variable rate.
Early Redemption Charge
If you repay your mortgage in full before a specified date you may be asked to pay an early redemption charge.
Equity
The difference between the value of your property and the amount of any outstanding loans secured against it.
Fixed Rate
These mortgages offer a fixed interest rate for a set period of time.
Freehold
The term used to indicate ownership of property and the land on which it stands.
Interest Only Mortgage
With this type of mortgage, the payments you make each month simply pay the interest on the amount you borrow. At the end of the mortgage term you must pay back the amount you originally borrowed.
Land Registration
This is a record held by HM Land Registry which lists the registered owner of a plot and any legal charge that may be placed on it.
Lease
A document, which grants possession of a property for a fixed period of time and sets out the obligations of both landlord and tenant such as; payment of rent and repairs.
Leasehold
Arrangement between a landlord and tenant where the landlord agrees for the tenant to lease the property for a fixed period of time.
Legal Charge
The legal document held by the Land Registry that identifies who has a claim on your property.
Mortgage
A loan you take out to buy your home.
Mortgage Deed
Legal document that you must sign to say that the lender has a legal charge over your property.
Mortgage Payment Protection Insurance
This is an insurance that will cover your mortgage payments should you be unable to work due to an accident, illness or involuntary redundancy.
Mortgagor
Person who borrows money to buy a property.
Mortgagee
Building society, bank or other company which lends money against the security of a charge over the property purchased.
Offer Letter
This is the official letter that the lender sends to you once all the referencing and valuations have been carried out satisfactorily.
Quotation
Document that illustrates the cost of your mortgage.
Redemption Penalties
These are the charges that some lenders make if you decide to move your mortgage.
Repossession
When a borrower fails to pay back their loan in accordance with its terms and conditions, the lender can exercise their legal right to take ownership of the property.
Repayment Mortgage
The payments you make each month will pay off the interest and an element of the capital.
Redemption Figure
This is the amount to be repaid to your existing lender when you move your mortgage.
Sealing Fee
This is the charge made by some lenders when they release the legal charge over your home.
Searches
Enquiries made at the Land Registry, the Land Charges Register and Local Authorities to ensure there is nothing to cause concern about title to the land.
Stamp Duty
A government tax on the price you pay for your home.
Standard Variable Rate
This is the normal variable rate charged by a lender. This rate can go up or down at any time at the lender's discretion.
Subject to Contract
A provisional agreement made between buyer and seller, before exchange of contracts, which allows either side to back out without penalty.
Term
Length of time over which your mortgage loan is to be paid.
Title
Legal right to ownership of a property.
Title Deed
Legal document which transfers ownership of registered land.
Valuation
This is a report produced on behalf of the lender. Lenders use this to decide whether they will offer a mortgage on the property.
Valuation Fee
A fee paid by the borrower for the lender's inspection of the property.
You may freely reprint this article provided the author's biography remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Getting a home loan with bad credit has actually never... Read More
A commercial mortgage is a loan that uses commercial property... Read More
Have you decided to refinance your home or apply for... Read More
A home equity loan is a loan based on the... Read More
We all know that there are a lot of mortgage... Read More
When applying for a mortgage loan when you have a... Read More
A fixed-rate mortgage is a mortgage on which the interest... Read More
Today, FHA will loan up to 97 percent of the... Read More
Trying to find a quick homeowner loan can seem difficult... Read More
Refinancing can be a very simple process. You fill out... Read More
First time home owners are sometimes surprised at the complexity... Read More
Unlike other investors, my venture into real estate was a... Read More
A mortgage is a loan that is guaranteed by a... Read More
Being self employed has many benefits. When you are self-employed,... Read More
What's the most efficient way to secure a US Commercial... Read More
Bridging finance, also referred to as "bridge loans" and "bridging... Read More
"Own your home free and clear in 3 to 4... Read More
Getting home loans is possibly the biggest step in an... Read More
A home equity loan allows you to cash-in on the... Read More
A Bridging Loan is a short-term loan used as a... Read More
USA ECONOMIC CONDITIONSToday's sluggish economy has left millions of people... Read More
Drive around and see how many signs you see that... Read More
There are two broad types of home equity loans:Term loans:... Read More
In today's world, a borrower should not be paying mortgage... Read More
If bulls and the bears of the stock market have... Read More
Customers who opt for an interest only mortgage, and feel... Read More
If you're actively looking for cheap homeowner loans, there are... Read More
Households across the country are finding themselves in a similar... Read More
A few years ago, many of us would have had... Read More
There are many benefits in choosing a remortgage, some of... Read More
Anyone planning to take out a mortgage for the first... Read More
Refinancing a mortgage is simply taking out a new mortgage.... Read More
The real estate market in California is booming. Home values... Read More
Refinancing has become a valid option for many individuals with... Read More
One of the most important steps in the home buying... Read More
Californians are passionate people. I know. I have lived in... Read More
This is an excellent loan for those that are lacking... Read More
A VA guaranteed mortgage is the usually the best way... Read More
Buying a home vs. renting is a big decision that... Read More
Most people choose a home owner loan as it can... Read More
For many seniors in or entering retirement, the prospect of... Read More
Once you've purchased your home, you will begin to get... Read More
So you're thinking about building your own house, are you?... Read More
Recently I was driving in my Car and I heard... Read More
One of the things that bothers me about the mortgage... Read More
An adjustable rate loan, most simply stated, means that your... Read More
An offset mortgage is very similar to a current account... Read More
Fixed Rate Mortgages: These loans have a fixed rate of... Read More
Buying a home, especially for the first time, can be... Read More
How much interest are you earning on your home equity?... Read More
If you're looking for a good home improvement loan rate,... Read More
This is a guide on how to get the best... Read More
When it comes to a reverse mortgage, wise consumers weigh... Read More
You may have heard people, especially mortgage lenders, extolling the... Read More
So, your bank had just turned you down for a... Read More
What if a banker or mortgage broker told you he's... Read More
If you are looking to refinance in New York, it... Read More
Your goal is not only to find the best rates... Read More
Many people fret the rising tide of interest rates. You'll... Read More
You can buy a home with a bad credit record;... Read More
Buying a Home for the first time can be a... Read More
If bulls and the bears of the stock market have... Read More
Consumers interested in purchasing or refinancing a home will pay... Read More
Here are some mortgage tips that can help you obtain... Read More
The financial stories remain similar over the months and the... Read More
The most common type of home equity loan is the... Read More
Mortgage Refinance |