Agreement in principle | A document from a lender indicating they may, based on the information they've received, be able to offer that much as a mortgage to the borrower. |
Arrangement fee | A fee from the lender to cover their costs for arranging the mortgage. |
Arrears | Arrears means money owed to the lender which has not been paid on time. |
Booking fee | A fee from the lender to cover their costs for arranging the mortgage. |
Broker | An adviser who can help you arrange a mortgage. |
Buy-to-let | A property the borrower intends to let out instead of live in. |
Capital | The money you borrow to buy a property. |
Conveyancing | The legal process of buying or selling property. |
Deposit | The amount of money the borrower puts forward to buy the property, which together with the capital should add up to the total purchase price. |
Early repayment charge | A fee the borrower pays to repay some or all of the mortgage early. |
Equity | The amount of the property that the borrower owns outright. The value of the property less the amount outstanding on the mortgage. |
Equity release scheme | A system allowing people to take some of the equity out of their home. |
Freehold | The property owner also owns the land the property stands on. |
Gazumping | This is when an offer has been accepted by the seller, but a second (higher) offer is made and the seller accepts that instead. |
Guarantor | A third party who agrees to pay the mortgage payments if the borrower does not. |
Higher lending charge | This is an additional fee charged by some lenders if the LTV is very high. |
Intermediary | An advisor who can help arrange a mortgage. |
Land Registry | The official body responsible for maintaining details of property ownership. |
Leasehold | The property owner does not own the land the property stands on. |
Loan-to-value | The percentage of the value of the property that is being borrowed. |
Monthly repayment | The amount the borrower pays each month to the lender. |
Mortgage deed | The official contract between the lender and borrower covering the terms of the loan. |
Mortgage term | The length of time the borrower will owe money to the lender, if they do not make any early repayments. |
Negative equity | This is when the value of the property drops enough that the amount outstanding on the mortgage is less than the value of the property. |
Portability | This is where the borrower can transfer their mortgage to a new property without arrangement or early repayment fees. |
Repayment vehicle | Part of interest-only mortgages, where the mechanism by which the capital is to be repaid is specified. |
Service charge | The fees charged by the freeholder to the owner of a leasehold property. |
Stamp duty | A tax on property sales, charged by the government. |
Tie-in period | The length of time for which the borrower would incur an early repayment fee if they attempted to remortgage with another lender. |
Underwriter | The person or organisation which approves the borrower's mortgage. |
Valuation survey | A survey by the lender to confirm the property is worth enough to secure their loan. |
Created By
https://aloneonahill.com
Metadata
Comments
No comments yet. Add yours below!
Add a Comment
Related Cheat Sheets
More Cheat Sheets by DaveChild