Here at Obligo we think you need to have a handle on the industry jargon!
All
| Term | Definition |
|---|---|
| Acceptance |
Usually a document confirming to a lender that a borrower/s wishes to proceed with an offer of a mortgage. |
| Additional Security Fee |
A fee made by some lenders to protect them against the borrower not paying a shortfall if the property is repossessed and sells for less than the mortgage outstanding. Also known as Mortgage Indemnity Guarantee, MIG, or higher lending charge. |
| Advance |
The sum provided by a lender to a borrower and secured on the property. The amount borrowed. |
| Adverse Credit |
Credit history, past and present that is poor in quality. Also known as bed credit, sub prime, non conforming, or blacklisted. |
| Agreement |
A document with the terms agreed between the buyer and the seller and commiting both parties to complete the sale/purchase. More commonly known as a sale contract. |
| Annual Percentage Rate (APR) |
This shows the total cost of borrowing taking into account the interest and other costs. |
| Arrears |
Money that is overdue in missed or late mortgage payment, which will result in action by a lender to repossess the property if left unchecked. |
| Asking Price |
Set by the seller of a property as what they hope to achieve when they sell. |
| Assignment |
A document Transfering the right or claim to a property from one party to another. Also known as a transfer document. |
| Auction |
A way of selling to the highest bidder. |
| Authorised firm |
A company or firm that is regulated and authorized by the financial services authority (FSA) to carry out regulated activites. |
| Bad Credit Mortgage |
General name given to a group of mortgages that are for people with a bad credit history. Also known as non conforming mortgages or sub prime mortgages. |
| Base Rate |
Interest rate set by the Bank of England and other banks. Tracker and variable mortgage rates will often adjust depending on fluctuations in the Base Rate. |
| Borrower |
Person who is contractually obliged to repay a loan or mortgage in accordance with its terms and conditions. |
| Break Clause |
A point in a contract that defines at which point a contract may be terminated or closed. |
| Bridging Loan |
A Temporary mortgage to enable a property to be purchased prior to the sale of another property. These are usually expensive and used as a last resort. |
| Buildings Insurance |
An Insurance policy required mortgage lenders designed to cover any structural damage to a property from for example land slip, fire, or accidents. This is to protect the interests of the mortgage company. |
| Bulding Survey |
A detailed report on the condition of a property and any other matters that should relate to a property, for example proximity to electricity pilons, mining, and environmental factors. The inspection carried out by a Chartered Surveyor. Also known as a Structural Survey or homebuyers report. |
| Buy to Let |
A generic term used to describe a property that has been purchased to rent out. |
| Buy to Let Mortgage |
Mortgage designed for buying property that is used for letting. Also known as a landlord mortgage. |
