An insurance policy designed to help you in the event of accident, sickness or redundancy. It will typically pay a percentage of your normal monthly mortgage payment for a specified period. This type of cover does not apply to voluntary redundancy or dismissal due to misconduct, or if your injuries are self-inflicted. ASR is sometimes also known as Accident, Sickness and Unemployment (ASU) insurance.
A professional that deals with calculations related to pensions, insurance and investments. In relation to your mortgage, an actuary will calculate the amounts payable for life assurance and other insurance policies you may need.
There are a number of costs related to arranging your mortgage, for instance administration fees or indemnity fees. When these are added to the amount that you borrow it is known as Added to Loan.
Most lenders will typically only loan between 75% and 90% or the purchase price of a property. In cases where borrowers are seeking an amount that is greater than the lender's usual limit, a charge known as an Additional Security Fee is levied, usually in the form of a one-off payment.
On a variable rate mortgage, this is the date on which the interest rate changes.
This is a charge levied by the lender to cover the costs of processing your mortgage application. If you do not complete your application, the fee may not be refunded. The administration fee is also sometimes known as an application fee.
This term is used to apply to a borrower or application that has past problems with credit, for instance late payment, bankruptcy or County Court Judgement.
The reduction in the amount of your mortgage during its term as you make regular payments to cover the principal and interest.
The amount of time, in months, required to pay off your mortgage loan.
The APR is a figure that is used to compare different mortgages. Defined by law, it includes repayments on the loan plus any fees such as booking, arrangement or redemption fees. The APR shows the true cost of borrowing, and should appear on all mortgage illustrations and quotes.
Under a tracker mortgage, to make it easier for the borrower to budget when repayments will typically vary each month, the lender may fix interest rates for 12 months. At the end of the year, the borrower's payments will be reviewed to see if they have under- or over-paid, and a new interest rate set for the next 12 months.
The person - or party - applying for a mortgage.
The process of applying for a mortgage, including the provision of the personal and financial details of the applicant.
The value of a property, as estimated by a surveyor.
The increase in the value of a property as a result of changes in market conditions.
Refers to the involvement of an independent third party to resolve a dispute between two other parties (rather than resort to legal action).
This is a charge levied by the lender to cover the costs of administering and reserving the funds for certain types of mortgage. May be paid separately or added to the loan amount.
The amount, usually in either months or pounds, that your mortgage payments have fallen behind schedule.
Any form of property owned by a person, including currency, stocks, and enforceable claims against others.
The transfer of an asset, or a mortgage, from one owner to another.