Mortgage Glossary of Terms
Adverse CreditThe term used if the borrower has a poor credit history. 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
New tenancies are automatically ASTs unless otherwise stated.Assured tenancyThe 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/FinanceShort term loan to enable the purchase of one property before the sale of another essentially releasing funds that are required for the purchase. You should always consult a professional before considering any bridging finance as it could be a solution that is worse than the problem.Brokers FeeA fee charged by an intermediary or advisor for locating the most appropriate mortgage for the borrower.Buildings insuranceInsurance 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 LetA mortgage meant for those who wish to purchase a property to rent out to others. 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 generally realted to non payment of a loan, mortgage etc debt in general. If you pay off the debt, the CCJ will be satisfied and a note is put on your records that states this.ChainA housing 'chain' made up of a number of buyers and sellers, essentially the line of buyers and sellers involved in each house move.ChargeAny right or interest, especially with a mortgage, to which a freehold or leasehold property may be held. Basically a charge is the claim the lender has on the property until the mortgage or loan is satisfied.
CompletionThe term used when the seller and buyer exchange the finances required to buy a property through their respective solicitors. At exchange of contracts a deposit, usually 10%, will have been paid. At this point the buyer becomes legal owner of the property. ConveyanceThe legal process in which ownership of the property is transferred from the seller to the buyer. Generally undertaken by a solicitor, or licensed conveyancer.Early redemption feeIf you decide that you want to sell your property or remortgage then you will be redeeming you mortgage early.
Most lenders charge a penalty fee, especially during any period of a fixed, capped or discounted rate. Be sure you are clear about any potential penalties when you are about to take on a mortgage.Equity and negative equityThe 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. vThis is where the money you owe on the mortgage is greater than the value of your property.Exchange of contractsThe 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 RateA set interest rate on a mortgage fixed for a period of time.
This varies from lender to lender. FreeholdIf you are the property owner outright then your property is freehold. Most houses are freehold wheres many flats are leasehold, since you are not the owner of the whole building containing the flats.GazumpingIf 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 MortgageA mortgage whereby the borrower is only required to pay inerest on the amount borrowed during the mortgage term. It is the borrowers responsibility to ensure that enough funds will exist (either
through an investment policy or other means) to repay the full mortgage at the end of the term.IntermediaryA mortgage broker or advisor who finds the most suitable mortgage for a borrower and arranges the mortgage on their behalf.LeaseholdIf 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. The owner of the property is called the freeholder or landlord.LiabilityThis relates more to commercial mortgages.
With a commercial mortgage liability for the repayment of the loan depends on the legal structure of the business:
- A sole trader will be personally liable for the mortgage debt. Personal assets could be seized if the business defaults.
- Partners are jointly liable for the debts of the partnership and their personal assets are at risk.
- With a limited-liability partnership and a limited company, the liability falls firstly on the business rather than on the individual partners and directors. The lender may take a floating charge on business assets in general, rather than simply on the current property being purchased.
- The lender may also insist on personal guarantees as a condition of granting the loan, in which case the partners and directors may be held personally liable anyway.
A ?90k mortgage on a house valued at ?100k would mean an LTV of 90%.MIG (Mortgage Indemnity Guarantee)A one off payment made when you set up a mortgage a kind of insurance policy for the lender. This offers them protection against the value of the home falling to less than the mortgage. It is generally only charged to borrowers with a less than 10% deposit, but this can vary.MortgageA loan to buy a property where the property is used as security against you paying back the loan.MortgageeThe company or organisation that lends you the money.MortgagorThe person taking out the mortgage.Non-StatusWhere a lender may not require income details from you or may accept some previous poor credit history i.e. CCJ's or previous mortgage arrears.Payment HolidayA period during which the borrower makes no mortgage payments.Regulated tenancyA legal right to live in your accommodation for a period of time. Your tenancy might be for a set period such as a year (this is known as a fixed term tenancy) or it might roll on a week-to-week or month-to-month basis (this is known as a periodic tenancy).You are a regulated tenant if you moved in before 15 January 1989, you pay rent to a private landlord and your landlord does not live in the same building as you.RemortgageThe taking on of a second mortgage to pay off the first.
The most common reasons for doing this are that another mortgage is available at a better rate or that the value of the property has gone up allowing for the opportunity to borrow more money against the property.Right to BuyFor example, a tenant in a council owned property may purchase the property at a discount depending on length of their tenancy.Self CertifiedGenerally when a borrower applies for a mortgage he or she will be asked to provide pay slips or company accounts to prove their income. If it is difficult or inconvenient for you to provide this evidence, you can choose to self-certify your income. This involves signing a declaration which states your income sources and amounts. Lenders will charge you higher rates than average and offer you a limited range of mortgages if you choose to self-certify your income, in general it's not a good idea to self-certify just to avoid some paperwork. Stamp DutyTax paid by the buyer of a property set at 1% for properties over ?60k, 3% for properties over ?250k and 4% for properties over ?500k.Structural surveyThe most wide ranging check of the structure of a property.
This is carried out by professional surveyor and should uncover any defects or faults with the building.TenancyA legal written agreement between a landlord and tenant that sets out the terms of the rental.TermThe period of years over which you take the mortgage and repay it.Term AssuranceAn insurance policy designed to repay the mortgage on the death of the insured person. Level Term Assurance covers a principal sum throughout the policy term and pays out the full amount on death. Reducing Term Assurance is designed to repay the balance outstanding on a repayment type mortgage upon death. Term Assurance may also pay out early on the diagnosis of a terminal illness.UnderwritingThe process of evaluating a loan application to determine the risk involved for the lender. This involves an analysis of the borrower's creditworthiness and the quality of the property itself.
UnencumberedWhere the property is owned outright and no mortgages or loans are secured against it.ValuationA simple check of the property in order to find out how much it is worth and whether it is suitable to secure a mortgage against.Valuation FeeThe fee paid by a borrower to cover the cost of the lender checking that the property is suitable security for the mortgage.Variable RateA type of interest rate the lender can charge. It goes up and down and your repayments change accordingly.VendorThe person selling the property..
Debt problems? need a loan? mortgage help? not sure in what to invest? The http://www.1stfinanceguide.com General Finance Guide may have the advice you've been searching for in our hundreds of useful articles.This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the link above is intact.articlesubs@gmail.comGFM President Issues Warning to Consumers Looking to Refinance: 'Be Wary of All Those Rock Bottom Interest Rates'
Fullerton, CA (ContentDesk) March 1, 2006 -- Thousands of faxes and emails are being sent to consumers all over the country, not to mention television, radio, newspaper and internet ads urging homeowners to refinance mortgage loans at never-before, rock bottom rates for use to help pay down high rate credit cards and other outstanding bills.
Some ads are touting loan plans with rates as low as 1.75% that can cut monthly payments in half.
If it sounds to good to be true, then its probably not, warns Gavin Fenske, President of Great Financial Mortgage, Inc.,www.greatfinancialmortgage.com. 
Although very appealing, the ads dont tell the whole story such as this low rate does not cover the true cost of a loan which can cause even more trouble in the months or years ahead.
The actual rate of a 1.0% mortgage is in fact around 7.0% with the possibility...
Mortgage > GFM President Issues Warning to Consumers Looking to Refinance: 'Be Wary of All Those Rock Bottom Interest Rates'
Pricing your House To Sell
Your asking price is likely the most difficult - and crucial - decision you'll
make when you put your house on the market. Ask too little and you risk leaving
money on the table unnecessarily. Ask too much and you may scare off potential
buyers. Most Sellers set their initial asking price at an amount somewhat higher
than they are actually willing to accept, fully expecting a buyer to open the
bidding with a lesser amount. While price is the most frequently negotiated item in any home sale, you may
be able to creatively provide financial value to your buyer - without lowering
the price alone.
- major appliances such as your stove, fridge, dishwasher and microwave offer
good negotiating power - while you'll likely be including some of them in
your asking price, consider excluding some from the listing (the washer and
dryer perhaps) to use as a future bargaining chip; - window...
Mortgage > Pricing your House To Sell
Google Adwords – Online Riches Without Owning A Website Or Product!
Did you know that you can make money from Google Adwords without having a product to sell, or even a website?Its true and there are many people all around the world quietly making lots of money doing it.So how do you do it?Quite simple really, you become an affiliate.An affiliate is somebody who sells other peoples products for a share of the profits. There are loads of companies on line who are eager for you to become their affiliate, and will pay you very well for generating sales for them. Did you know for example that mortgage companies and other financial institutions will pay up to $50 per referral? Normally your prospect doesnt even have to take the mortgage in order for you to pick up the money, you get it for them just filling in the form.Satellite TV companies are another example of big payers, and there a lot of high ticket software products that can earn you $100+ commissions. There are loads of other companies in all walks of life that want you as an affiliate, do a...
Google Adwords – Online Riches Without Owning A Website Or Product!
Mortgage > Google Adwords – Online Riches Without Owning A Website Or Product!
Lowest Mortgage Rates
A mortgage is very efficiently used in creation of a lien on a contract basis. The mortgage as a lien is usually created on a real state, a house, for instance. It is more than often used deliberately as a method by which individuals or businesses can buy residential or commercial property without paying the full value upfront. Any rational human being will try for that financial company or bank that will best provide him with lowest rates in mortgages. It is always advisable that a person who is looking for a loan should always compare the mortgage rates.
Therefore, it is also quite obvious that the individual will calculate and look after his own benefit as he would compare the different mortgage rates that are available in the market.
This comparison becomes an important activity as the individual in question is always concerned about his monetary benefit.
Lowest mortgage rates are the highest advantage yielding proposition for any kind of borrower....
Mortgage > Lowest Mortgage Rates
What is debt consolidation all about?
Debt consolidation is a very common thing in the western countries. It basically means getting a loan to pay off any other loans or debts. Usually, when people get a debt consolidation loan, they look for the lowest interest rate they can find and for something that can make their financial life easier to handle. This means they are interested in uniting all their loans into one and paying their debts faster and easier.
Well, debt consolidation sounds pretty good until now, but is it perfect?
First let's look at the positive aspects of a debt consolidation loan:
1.
Instead of having to make a lot of payments to a lot of creditors you only have one creditor and one monthly payment. This greatly reduces the stress in your life because you aren't forced to figure out who you should pay, when or what the specific amount is. You just have to remember the company that helps you with debt consolidation.
2. The interest rate for a debt consolidation...
Mortgage > What is debt consolidation all about?
Deciding to Consolidate Debt?
What is the point of consolidating debt and when should you do it? What are some of the options for consolidating debt? At some point in their financial lives, many people ask these questions. If you have been pondering these thoughts, read on.
Consolidating debt means different things to different people. To a young couple or family thinking about buying a home consolidating debt may be necessary to lessen their debt to income ratio. For a single person tired of writing ten or twenty checks each month consolidating debt may be a way of making his/her financial life more convenient and organized. A family with college age children may consolidate debt in order to fund a college education.
Older people on the verge of retirement may be considering debt consolidation as a way of simplifying their lives and adjusting to a change in income. All of these scenarios are sound reasons for investigating debt consolidation and all...
Deciding to Consolidate Debt?
Mortgage > Deciding to Consolidate Debt?
Tax Lien Certificates and Subsequent Tax Procedures
Tax lien auctions have gotten more and more competitive in recent years. Some factors that have led to this trend include: more awareness among small investors because of new courses on the market, more Wall Street money entering the market and the new trend of internet tax sales.
If you have been to the tax lien sale lately you may have noticed something interesting. The big dog investors are bidding the properties down to next to nothing. In Florida, it's very common to see properties bid down to one quarter of one percent. Has your banker gone insane? Or do they know something that you don't?
It's probably a little of both, or they are probably playing the sub tax game.
What's the sub tax game? It's very simple, really. In many states, the regulations allow tax lien investors to pay the taxes for the following years, also called subsequent taxes. In other states, the investor is actually even required to pay the sub taxes. Even more interesting,...
Tax Lien Certificates and Subsequent Tax Procedures
Mortgage > Tax Lien Certificates and Subsequent Tax Procedures
Commercial Production House, Electric Company, Adds Broadcast Directors to its New Media Roster.
TORONTO, ON, June 2, 2004 In an effort to blur the lines between broadcast and new media, commercial production house "Electric Company" today added a roster of broadcast talent to it's already world class new media roster. The broadcast animation and motion design of iamstatic, James Paterson, Play Airways, Norma V Torava and Steve McArdle will be added to the existing New Media Roster of Grant Skinner, Joshua Davis, Glyn Thomas and wefail. "These artist are the first generation to blur the...
electric generator Mortgage Glossary of Terms
Mortgage > Commercial Production House, Electric Company, Adds Broadcast Directors to its New Media Roster.
Top Ten Tips for Making a Great Collage
The word "collage", as defined by the Merriam-Webster dictionary, refers to "an artistic composition made of various materials (as paper, cloth or wood) glued on a surface." It is derived from the French verb, coller, which means to glue. Collages are fun to create and can be incorporated as a useful coaching tool. You might encourage your clients to make collages around different things, qualities, ideas, and opportunities that they wish to attract into their life. These personal artistic creations...
Top Ten Tips for Making a Great Collage Mortgage Glossary of Terms Mortgage
Mortgage > Top Ten Tips for Making a Great Collage
Psychiatrist Behind Bars After Bail Security Withdrawn For Assault And Uttering Threats
(ContentDesk) October 14, 2005 -- Dr. Larry Anderson, a psychiatrist who was found guilty of three counts of indecent or sexual assault involving three female patients over several years by a jury trial in July, 2005 has been behind bars since September 27 because his bail security was withdrawn when he was charged with two counts of assault and two counts of uttering threats on Sept 7 and Sept 14 in the Princeton, British Columbia area (Court case # 31377). Since his conviction in July, Dr....
hearing aid Mortgage Glossary of Terms Mortgage
Mortgage > Psychiatrist Behind Bars After Bail Security Withdrawn For Assault And Uttering Threats
used cars Mortgage Glossary of Terms Mortgage
LCD TV Review - Get the Best for Less
What is an LCD TV
An LCD (light crystal display) screen consist of a thin layer of liquid crystals sandwiched between two plates of glass. When an electric current is sent through these crystals an array of tiny multi-colored pixels light up and produce a TV picture.
Because they're so thin and light, LCD screens are now the most popular screens for computers, and as prices come down, are becoming the most popular screens for TVs.
LCD TV screens...
Mortgage > LCD TV Review - Get the Best for Less
Mortgage
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