There are always plenty of Jargon terms to deal with when looking for a mortgage, our jargon buster explains what those terms mean.
Accident Insurance:
Insurance that covers you if you suffer certain injuries, such as loss
of a limb or vision.
Accident, Sickness And Unemployment Insurance: Protects
against inability to meet mortgage payments.
Administration Charge: Some providers
will charge a fee for the valuation to cover the providers own costs.
Arrears Fee: Charges for any late
payments. See late payment fee.
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Bankruptcy :The process of declaring
an individual or company bankrupt.
Buy To Let Mortgage : A mortgage
for a property which the owner intends to rent out privately to tenants.
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Cash Back Mortgages : Cash back mortgages provide you with a single lump sum of cash immediately on completion of the lloan amount
CCJ : county court judgement (CCJ)
Conveyancing :The legal documentation relating to the transfer of ownership of a property.
Credit Check : Where an enquiry is made on the credit history of an applicant, normally by reference to one of the major credit agencies such as Equifax or Experian.
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Debt Consolidation : Replacing a number of existing loans with a single loan.
Deed : The document that proves you own the property. It will also show any land boundaries.
Direct Debit : A method of making automatic payments electronically from a current account.
Discount Purchase Price : The price of a property which has been reduced below the open-market value.
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Endowment mortgage: A mortgage with an interest payment and a separate payment into an endowment investment product designed to repay the mortgage at the end of the term.
Equity Release scheme: A way older homeowners can free up some of the value of their homes.
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Fee : The amount charged by a provider, broker or other middleman for arranging a mortgage or property purchase.
Financial Adviser : A person who helps individuals with their financial situation.
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Gross Income : Total income after tax.
Guarantor : Is a person who agrees to guarantee that a loan will be paid.
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Home Equity Loan : A method releasing capital from people's homes. See Equity Release
Home Improvements : Work carried out to improve your home.
Homebuyer's Valuation Fee : This is the fee paid for a simple survey of the property you are thinking of buying.
Household Insurance : Insurance cover for your home. The two main types are building and contents insurance.
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IFA : Independent financial advisor is an advisor who has no affiliation with other financial companies.
Income Protection Insurance: Provides protection on the repayments on a loan.
Inflation : In accordance with inflation.
Interest Only : Mortgages where you pay off only the interest.
Interest Rate : The percentage of your loan that a provider charges each year.
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Joint Application : A mortgage application that involves more than one person as the borrower.
Joint Liability :More than one person who are responsible for a loan or debt.
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Land Registry : A record of property.
Late Charge : A fee the provider imposes for receiving late payments.
provider : An organisation which offers mortgage products.
Loan : The amount to be borrowed.
Loan Consolidation : A large loan is taken to help pay for smaller loans held elsewhere.
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Mortgage : The name given to the form used to buy property.
Mortgage Code : The regulations that mortgage providers have to adhere to.
Mortgage Term : Is the length of time before the mortgage loan must be repaid.
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Net Profit : The income of a company or self employed persons.
Non Status : A loan granted without making enquiries as to the borrower's income or credit history.
Notice Of Default : When you have fallen behind on your credit repayments.
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Outgoings : Other than an existing mortgage, outgoings such as bills, hire purchase, personal loans, school fees etc.
Outstanding Balance : The amount that is outstanding.
Overpayments: You can to pay more than the standard monthly repayment.
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Payment Default : If you miss your credit repayments, the provider is entitled to reposes your house.
Payment Protection Insurance : Life accident unemployment insurance.
Payment Schedule : Monthly repayments.
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Remortgaging: Switching your mortgage or a mortgage provider.
Repayment : This is payment made to cover interest or reduction in principal of a loan.
Repayment Plan : Renegotiate a repayment plan if you fall behind in repayments due to no fault of your own.
Right To Buy : Council tenants can purchase the property in which they live in.
Royal Institute Of Chartered Surveyors : The professional body for surveyors.
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Second Mortgage : A further loan on a property.
Secured Loan : A loan that is secured using your property.
Shared Ownership : A property purchase in partnership with a housing association.
Sole Occupancy : A property that is occupied by the borrower
Stamp Duty : A Tax that is payable on a purchase,
Structural Survey : undertaken by a chartered surveyor.
Survey : An inspection carried out on a property by the provider
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Term : Length of time before the mortgage loan must be repaid.
Top Up Loan : Provides an overall loan in excess of the loan arranged.
Tracking : The progress of a loan application.
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Valuation: : A surveyor values your property.
Valuation Fee: : A fee paid by the borrower for the inspection of a property.
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