Alexander Hall Mortgages Mortgage jargon buster Mortgage terms beginning with E

Mortgage jargon buster

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Early Repayment Charge

A charge levied by the lender as a penalty if a mortgage is paid off before the end of its term. Also known as Early Redemption Penalty.

Easement

A Right of Way that allows persons other than the owner to access a property.

Encumbrance

Anything that has a limiting or detrimental affect on the ownership of a property, including, for instance, mortgages, leases, rights of way and easements.

Endowment

A financial investment product or vehicle that a borrower pays into during the course of a mortgage and the proceeds of which are used to pay off the mortgage loan at the end of its term.

Endowment Mortgage

A mortgage in which the borrower only repays the interest on the loan for the term of the mortgage, then repays the loan amount at the end of the term. The borrower pays into an endowment product during the course of the mortgage and then uses the proceeds to pay off the original loan at the end of the term. IT IS STRONGLY ADVISED THAT YOU TAKE INDEPENDENT FINANCIAL ADVICE BEFORE TAKING OUT ANY ENDOWMENT POLICY.

Equity

The amount of money either put into buying a property or the deposit placed on a property. Also known as capital.

Equity Release

A mortgage taken out on a home that is already fully owned, typically in order to make use of the capital tied up in it.

Estate

A legal term referring to the sum total of all the property and personal assets owned by an individual at the time of their death.

Eviction

The legal expulsion of an occupant from a property.

Examination of Title

The report that details the title of a property, usually taken from the public records or an abstract of the title.

Excess Payments

Mortgage repayments that are over and above the standard monthly rate. Some mortgage products impose charges for excess payment, and/or set limits to the size and frequency of such payments.

Exchange of Contracts (excludes Scotland)

The stage in the purchase process at which the buyer and seller confirm legally binding commitments to the sale, and agree on the terms and conditions of that sale.

Existing Liabilities

Your financial outgoings, such as loan repayments, regular fees, or child maintenance, before taking out a mortgage. Borrowers are obliged to disclose all such outgoings as part of the mortgage application process.

Expatriate

A person working in a country that is neither their country of birth nor nationality.

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