Jargons
Acceleration
The lender’s rights to recall the full payment of the outstanding mortgage loan in the event of defaults.
Advance
A property mortgage loan
Adverse Credit
Usually used to describe a borrower or application with bad credit history or record, for instance bad debts, bankruptcy or consistent late payments.
Agreement For Sale
A documented agreement in which the property buyer and seller agree to complete the transaction under terms and conditions stated in the document. Also known as binder, sales contract, and earnest money contract.
Amortization
The gradual reduction of the mortgage loan balance over the loan repayment schedule.
Appraisal Value
A qualified report that indicates an estimated market value of a property.
Appreciation
An increase in the value of a property over time.
APR (Annual Percentage Rate)
The total cost of a property mortgage loan, including interest and other charges, shown as a percentage. The calculation assumes that you keep the mortgage loan for the full tenure. APR is an industry standard specified in the Truth In Lending Act and helps in comparison of different mortgages loan offers from all mortgage loan lenders. It represents the true costs of a mortgage loan taking into account interest and fees.
Arrangement fee
The fee incurred when you apply for a mortgage loan to cover administrative charges. Also known as a product fee.
Assessed Valuation
The value that relevant authorities place on a property for the purpose of tax calculation.
Assignment
The transfer of ownership of a lease. This term is also used in insurance on the transfer of ownership.
Assumption
An Agreement between buyer and seller where the buyer agrees to take over the existing mortgage loan.
Balance Outstanding
The amount in numerical figures of mortgage loan owed at the time of enquiry.
Bank of England Base Rate
The Bank of England sets a ‘Base Rate’ every month. Base Rate is used by banks and Building Societies to set the interest rates they pay on deposits, or charge on debts.
Borrower
The person or entity that receives the mortgage loan with an obligation to repay it in full with interest subjected to the stipulated terms and conditions.
Bridging Loan / Bridging Finance
A temporary short term loan for someone to buy a new property before they have obtained the proceeds from selling their existing property.
Broker
The middlemen who brings sellers and buyers together with a view to making an agreed deal between them.
Building Code
The regulations that set standards on building requirements to satisfy health and safety concerns. Also known as building regulations.
Buildings Insurance
Insurance against the costs associated with the rebuilding of a property following structural damage.
Building Regulations
The health and safety requirements set by the relevant agencies ensuring that any new construction must meet.
Building Society
An institution that provides a range of mortgage loans and savings.
Buy-Down
A method where the builder subsidizes the first few years of a mortgage loan so as to lower the monthly payments that the buyer has to pay if the buyer purchases the property with a mortgage loan.
Capital and Interest Mortgage
Your monthly payments schedules over the course of the whole mortgage loan tenure. It shows the amount of interest and amount of principle you you pay on each monthly payment. Also known as Repayment Mortgage.
Cashback Mortgage
A lump sum or a percentage of your mortgage you will receive in cash when you fully complete the course of the mortgage loan tenure.
Cash-Out
Refinancing an existing mortgage or fully paid up property to loan a sum of money on their house. Also known as equity loan.
Certificate Of Occupancy
A documented approval from the local authorities of a specific building structure to be inhabited.
Charge
An interest in the ownership of a property; usually a mortgage or some other banking facility secured against the property.
Closing
The completion of a transaction.
Closing Costs
All costs incurred to close and complete a transaction.
Closing Statement
A detailed summary that shows all movement of funds expected at the closing.
Collateral
Property or assets pledged as a security for a loan. The property you purchase with the mortgage loan will be a collateral for the loan.
Completion (Date of Entry in Scotland)
Completion of the purchase or refinancing process. Ownership is legally and legitimately transferred.
Conclusion of Missives
Final step of the property purchase process in Scotland.
Contents Insurance
Insurance against accidental damage or theft of all moveable contents in including appliances and furniture.
Contingency
Specified conditions that must be met before a contract is legally binding.
Contract
A document with the description of the agreement under which the property will legally and legitimately change hands.
Conveyancer
A person other than a solicitor who may conduct the conveyancing (see conveyancing).
Conveyancing
The process of legally and legitimately transferring property from one party to another.
Covenant
A condition contained within the property Title Deeds or lease, that the buyer must comply with, which also usually applies to future owners of the particular property. A restrictive covenant prohibits the owner from doing something in particular as mentioned in the covenant.
CPF
Central Provident Fund. A form of social security in Singapore that can be utilized to purchase property.
Credit Scoring
A system to determine how well you manage your finances and determine you current financial behavior and position. Also known as credit rating.
Credit Report
A detailed report on the credit standing of the borrower. This report is used by the lender to determine the credit worthiness of the borrower.
Debt Consolidation
Combining your different outstanding debts into one loan.
Debt-To-Income Ratio
Debt commitments expressed as a percentage to income. This ratio is used to determine the financial leverage of a borrower. Also known as debt-servicing-ratio.
Deeds
Legal documents that show the rightful owner of a property or piece of land.
Department Of Veteran Affairs (VA)
An independent government agency. The VA home loan is a program that encourages long term and low down payments on properties for eligible veterans.
Deposit
An initial sum of money the buyer puts down to secure the mortgage loan. Can vary from 5 to 20 per cent of the property purchase price or property value.
Direct Debit
An instruction to make regular payments direct from the borrower’s account for their loan payments.
Disbursement
The release of the mortgage loan for the purpose of purchasing the property, or paying off existing mortgage loan for refinancing.
Discharge
Completion of paying off a mortgage loan.
Discount Mortgage
A discount offered to borrowers, with conditions, for reducing monthly mortgage repayments usually only for the first few initial years of the mortgage refinancing loan. Also known as discount fee.
Due-On-Sale
A clause in a mortgage that grants the lender the rights to recall the mortgage balance immediately if the borrower sells his house.
Early Repayment Charge
A fee payable when you repay your mortgage loan earlier than the full tenure. The terms of the mortgage loan facility offered will clearly state the amount to be charged and how the amount will be determined.
Earnest Money
A deposit payment to bind a buying and selling transaction.
Easement
A legal right over a piece of land.
Equity
The difference between the property fair value and the current mortgage loan outstanding.
Escrow
Funds given to a third party that will be used for fees and charges on insurance, tax payments, etc.
Exchange of contracts
The point at it is officially legally binding for a buying and selling transaction to go through.
FA
Financial advisor
Financial Services Authority (FSA)
The regulatory authority for the UK financial services industry.
Fixed rate mortgage
A mortgage loan where the interest rates are fixed for a specified period of time.
Fixtures and Fittings
All non-structural items included in the transaction for the purchase of a property.
Flexible Mortgage
An loan structure that allows the mortgage loan borrower to pay more than contractually agreed, and with the excess that have been accumulated, take payment holidays or borrow it back.
Freehold
Legal title that specifies that you outright own the property.
Full Structural Survey
A full structural survey of the property in question.
Further Advance
An additional loan taken against your property.
Gazumping
When a property seller pulls out of an agreed sale after getting a higher offer.
Gazundering
A slimy tactic where the buyer haggles for a price lower than the agreed price just before the exchange of contracts.
Ground Rent
The annual fee a leaseholder pays to a freeholder.
Guarantor
Someone who guarantees to pay off your mortgage loan if you can’t.
HDB
Housing Development Board
Higher Lending Charge
This charge is payable if you borrow more than what you need to purchase the property.
Home Buyers Report
A report detailing the structural condition of the property that are readily accessible. Does not involve in-depth investigation.
Home Contents Insurance
An insurance policy insuring household contents against damage and theft.
Home Envirosearch
A report on detailed flood, subsidence and land contamination history for each UK neighbourhood
IFA
Independent Financial Advisor.
IDD
Initial Disclosure Document. A document that is supposed to assist you in comparing different and competing lenders and intermediaries.
Interest Only Mortgage
A mortgage loan where you only repay the interest on your mortgage debt each month.
Joint Mortgage
A mortgage where more than one named individual is responsible for the binding contract.
Joint Tenants
A form of ownership where there is more than one owner.
Key Facts Illustration (KFI)
A document containing material mortgage information to help you compare the costs and features of different mortgages from other lenders and their competitors.
Land Certificate
A certificate proving ownership of a property or piece of land.
Land Registry
A government organisation that holds records of all registered properties.
Land Registry Fee
A fee paid to the Land Registry to register the details of your property.
Leasehold
The ownership of a property but not the land it is built on. Usually a specified period of ownership is indicated.
Life Assurance/Insurance
Insurance which pays out on the death of the policy holder. Lenders may require you to purchase one in case you are unable to continue making the mortgage loan repayments due to death.
Local Authority Search
A search of the local area for material information that highlights anything that may impact on the property.
Loan to Value (LTV)
The amount of mortgage loan expressed as a percentage of the property value.
Monthly Interest
The monthly mortgage loan interest incurred.
Mortgage Deed
A legal document specifying the mortgage loan lender’s interest in the property.
Mortgage Offer
The quantum of money that the mortgage loan lender offers to lend you to purchase or refinance a property.
Mortgage Payment Protection Insurance (MPPI)
An insurance scheme designed to pay your mortgage loan repayments for a limited period if you are unable to work for income through illness, accident or redundancy.
Mortgage Term
The tenure over which the mortgage loan is to be repaid.
Negative Equity
When the outstanding mortgage loan is more than the market property valuation.
NHBC
National House Building Council. A warranty scheme for new properties providing covering against major structural defects for 10 years.
Ombudsman
An independent professional body set up to help settle disputes between consumers and firms.
Planning Permission
The official permission granted by the local land planning authority for the erection of new building structures.
Premium
The amount you repay on a regular basis to an approved insurer for any kind of insurance policy.
Private Sale
Sale of a property without the using the services of an estate property agent.
Product Fee
The fee incurred when you apply for a mortgage loan to cover administrative charges. Also known as a arrangement fee.
Remortgage
The process of refinancing your existing mortgage loan. You take on a new mortgage loan different mortgage loan lender preferably with lowest interest rates.
Repayment Type
The mortgage loan or refinance mortgage loan structure that is available for your property mortgage loan.
Retention
The act of withholding part of or the whole mortgage loan pending repairs to the property to a satisfactory condition.
Sole Agency
The estate property agent that you have signed with that grants them the sole rights to selling or buying a property.
Solicitor
Legal professional who handles the documentation for the sale and purchase of a specified property.
Stamp Duty
A form of tax you must pay on a property purchase.
Subject to Contract
An indicate that an agreement is not yet legally binding due to the fulfillment of specified conditions.
Survey
A thorough investigative report or review on the property you will be purchasing.
Surveyor
Person who conducts the thorough investigative report or review on the property.
Tenants
People living or companies operating in a specified property on a non-ownership basis.
Tenancy in Common
A form of ownership by two or more people in which, the portion of the property will be passed on to their estate instead of the other owner when one dies.
Title
A legal record of the owners of a property.
Total Amount Payable
The total cost of repaying a mortgage loan or refinancing mortgage loan.
Transfer Deeds
The Land Registry document transferring legal ownership from seller to the legitimate buyer.
Transfer of Equity
Adding or removing a party who is part of a refinance mortgage loan.
Under Offer
A term describing that the property seller has provisionally accepted the buyer’s offer.
Valuation
A value put on the property in question for mortgage loan and mortgage loan refinancing purposes that determined that property at market value so as to ensure that the property is worth the amount requested for a mortgage loan.
Valuation Fee
The fees for the conduct of the valuation of the property in question.
Variable Interest Rate
Rate of interest payable that fluctuates over time. Usually the dynamics of the mortgage loan interest rates fluctuations will be explained to the borrower.
Vendor
The seller or appointed seller of a property or piece of land
