Mortgage
Talking about mortgage, it is important to understand the term adverse credit. Adverse credit is used if the borrower has a poor credit history. According to experts, this could include previous mortgage or loan arrears, bankruptcy or CCJ's. Other terms used to describe an adverse credit mortgage include:
Bad credit mortgage
Poor credit mortgage
Non status mortgage
Credit impaired mortgage
No credit mortgage
Low credit score mortgage
APR (Annual Percentage Rate)
Annual percentage rate can be defined as the interest rate reflecting the cost of a mortgage as a yearly rate. In theory, the APR provides home buyers with the ability to compare different types of mortgages based on the annual cost of each.
Arrangement Fee
Arrangement fee is the fee you pay your lender in return for them providing you with a mortgage. It is generally paid on completion or with your application, these fees usually apply when you take out a fixed rate, discount or cashback mortgage.
AST (Assured Shorthold Tenancy)
AST is more or less can be termed as a form of tenancy that gives the landlord the right to repossess their property after a set amount of time laid out in the tenancy agreement. Fact remains that new tenancies are automatically ASTs unless otherwise stated.
Assured tenancy
According to experts, the landlord can charge a market rent (the current rate for similar property in that area) and take back the property under certain conditions, as set out in the Housing Acts of 1988 and 1996.
Bridging Loan/Finance
Bridging loan is more or less the short-term loan to enable the purchase of one property before the sale of another essentially releasing funds that are required for the purchase. It is worth pointing in this regard that you should always consult a professional before considering any bridging finance as it could be a solution that is worse than the problem.
Brokers Fee
Brokers fee can be defined as a fee charged by an intermediary or advisor for locating the most appropriate mortgage for the borrower.
Buildings insurance
Buildings insurance is a type of insurance you can take out when you buy a property that will cover the cost of any damage to the house and or contents.
Buy to Let
A mortgage especially for those who are willing to buy a property to rent out to others. It is worth pointing that the decision on whether you are able to repay this type of mortgage is often based up on the future rental income from the property rather than the personal income of you the borrower.
CCJ (County Court Judgment)
A judgement reached in the County Court normally related to non-payment of a loan, mortgage etc debt in general. It is worth noting that if you pay off the debt, the CCJ will be satisfied and a note is put on your records that states this.
Chain This is a housing 'chain' made up of a number of buyers and sellers, essentially the line of buyers and sellers involved in each house move.Charge
Any right or interest, especially with a mortgage, to which a freehold or leasehold property may be held. Generally a charge is the claim the lender has on the property until the mortgage or loan is satisfied.
Completion
The term completion is used when the seller and buyer exchange the finances required to buy a property through their respective solicitors. In theory, at exchange of contracts a deposit, usually 10%, will have been paid. At this moment the buyer becomes legal owner of the property.
Conveyance
The legal process in which ownership of the property is transferred from the seller to the buyer. Normally undertaken by a solicitor, or licensed conveyancer.
Early redemption fee
If you have come up to the conclusion that you want to sell your property or remortgage then you will be redeeming you mortgage early. In this scenario, some lenders charge a penalty fee, especially during any period of a fixed, capped or discounted rate. It¡¦s your responsibility to make sure you are clear about any potential penalties when you are about to take on a mortgage.
Equity and negative equity
Equity can be defined as the amount of value in a property that isn't covered by a mortgage - simply take the amount of the mortgage from the valuation to work out the equity. In theory, this is where the money you owe on the mortgage is greater than the value of your property.
Exchange of contracts
In legal terms, the contract is a written agreement that lays out the terms between the buyer and the seller. When both parties exchange contracts, usually weeks before completion, the deal becomes legally binding. Often a deposit of around 10%, is paid at this stage.
Fixed Rate
A set interest rate on a mortgage fixed for a period of time. This varies from lender to lender.
Freehold
In theory, if you are the property owner outright then your property is freehold. Most houses are freehold on the other hand many flats are leasehold, since you are not the owner of the whole building containing the flats.
Gazumping
According to experts, if you are in the process of purchasing a property and your offer has been accepted but the seller gets a better offer, before you complete, and takes it then, you've just been 'Gazumped'.
Interest Only Mortgage
This type of mortgage can be defined as a mortgage whereby the borrower is only required to pay interest on the amount borrowed during the mortgage term. In addition, it is the borrowers responsibility to ensure that enough funds will exist (either through an investment policyor other means) to repay the full mortgage at the end of the term.
Intermediary
A mortgage broker or advisor who search the most suitable mortgage for a borrower and arranges the mortgage on their behalf.
Leasehold
If you buy a leasehold property you don't own the property rather the right to live there for a specified period of time, however much time remains on the lease. In theory, the owner of the property is called the freeholder or landlord.
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