| APR |
annual percentage rate. As a statutory requirement
this figure must be made known and it represents the true cost of the loans. The
total cost including interest and fees, for example. |
|
|
| Assurance |
Level Term - a
policy that pays out on the event of death of the loan holder. It is level term
because it will cover the same amount of loan debt throughout the repayment period.
It is suited to interest only loans.
Life - a life insurance policy specifically suited
to mortgage or loan protection. Some of the premium goes towards life insurance
for covering your loan in the event of the loan holder's death. The rest is invested
for a pay out at the end of the term. |
|
|
| Broker |
a broker is an intermediary who offers policies /
loans based on need from a 'panel' of providers. The broker is often the one who
processes the loan. |
|
|
| CCJ |
stands for 'County Court Judgement' and is a court
order against a debtor to settle a debt. |
|
|
| Certificate of Satisfaction |
obtained from the county court after you have settled
your CCJ |
|
|
| Exchange of contracts |
this is what is signed towards the end of the house
purchase process. Once it has been effected the purchaser has an obligation to
purchase by a given date and time. |
|
|
| Endowment |
often in the news regarding their performance, it
is a life assurance policy that pays off debts at the end of a given term. |
|
|
| Fixed rates |
a rate agreed for repayment on a loan. A fixed rate
means the percentage rate you pay will not be adjusted for a specified term. |
|
|
| IFA |
stands for Independent Financial Advisor. |
|
|
| Income protection insurance
|
a useful policy for ensuring regular income in the
event of agreed circumstances, such as redundancy or unemployment due to sickness. |
|
|
| Insurance |
Single - insurance
to protect the income / repayment of the loan applicant.
Split / double - insurance to protect the income
of the second wage earner. |
|
|
| Loan |
Secured - a loan
secured against the property.
Unsecured - a loan offered to those with favourable
credit ratings, where security is not required. |
|
|
| LTV |
stands for 'loan to value' and simply means the ration
of the loan to the value of the purchase (e.g. property) |
|
|
| MIRAS |
stands for 'mortgage interest relief at source'.
It used to be a tax relief on mortgage interest repayments but was scrapped in
2000. |
| |
|
| Negative equity |
when the amount that is outstanding on a mortgage
is greater than the amount the property is worth. |
|
|
| Security |
this represents whatever (usually a property) is
offered in default of payment on your loan. |
|
|
| Security address |
this is the address (property) that is offered as
security (see above) to the loan provider. The better the security the better
the terns for the loan - e.g. better APR |
|
|
| Self-certified |
this is when a loan is offered on the basis of the
application informing or 'self-certifying' their income. It is often the type
of loan that is applicable to self-employed or high bonus-salary ratio applicants. |
|
|
| Status |
simply refers to your credit worthiness. |
|
|
| Term |
how long the loan is for or rather how long you have
to pay back the amount you borrowed. |
