The property and mortgage market is full of jargon.

APR
This helps you to compare charges as it takes into account up front fees and the lenders method of calculating interest. It is somewhat debased, as the lender can assume that the cheap initial interest rate can last for the duration of the mortgage.

Completion
When transfer of ownership takes place and you get the keys.

Conveyencing
The legal process of buying and selling a property

Credit Reference Agency
When you take out a mortgage or a loan the information will be passed to a credit reference agency on how you conduct it.

Credit Score
The lender checks whether you have paid your loan and existing mortgage on time, or whether any county-court judgements or defaults are registered against you. It may also take into account your families credit, your occupation, marital status etc.

Disbursements
The fees your solicitor has to pay such as stamp duty, land registry, local mining search and local authority search. These are extra to the solicitors charges for his/her work.

Exchange of Contracts
A contract is a legally binding document. At exchange the buyer and seller is bound by the contract.

High Lending Charge
Also known as high risk fee, high loan to value fee and MIG. Generally charged where the mortgageexceeds 90% and charged on the amount that exceeds 75%. The money is used by the lender to take out an insurance policy which covers them in case you default. You get no benefit from this policy. It is usually added to the mortgage.

Life Cover
A policy taken out to protect your dependents, as the mortgage continues until the property is sold. As independent financial advisors we can arrange for a policy suitable to your needs.

Mortgage
A loan with a property as security.

Early Repayment Charge
These are charges made when you pay off your mortgage early. Sometimes known as product related charges or repayment fees. Often borrowers can avoid fees by looking at their personal circumstances.

Stamp Duty
Tax on property where the purchase price is more than £60,000. There are further thresholds at £250,000 and £500,000. If the price exceeds this by a few thousand pounds, it may be possible to split the purchase price to the property and apportion some to fixtures and fittings.

Survey
Where the surveyor has a legal liability to the buyer. A full structural survey is very expensive.

Valuation
This is not an indepth survey and the lender carries this out for its own benefit to ensure the property value covers the loan. There is more
in-depth valuation known as Homebuyers Report available.

Vendor
The person that is selling the property.

For an explanation of buying a mortgage in simple terms please contact us.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT
KEEP UP REPAYMENTS ON YOUR MORTGAGE.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
View Terms of Business | Site Designed By Taylored Webs Direct