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A loan you take out to buy your home.
Mortgage Deed
Legal document that you must sign to say that lender has a legal charge over your property.
Mortgage Payment Protection Insurance
This is an insurance that will cover your mortgage payments should you be unable to work due to an accident, illness or involuntary redundancy.
Mortgagor
Person who borrows money to buy a property.
Mortgagee
Building society, bank or other company which lends money against security of a charge over property purchased.
Offer Letter
This is official letter that lender sends to you once all referencing and valuations have been carried out satisfactorily.
Quotation
Document that illustrates cost of your mortgage.
Redemption Penalties
These are charges that some lenders make if you decide to move your mortgage.
Repossession
When a borrower fails to pay back their loan in accordance with its terms and conditions, lender can exercise their legal right to take ownership of property.
Repayment Mortgage
The payments you make each month will pay off interest and an element of capital.
Redemption Figure
This is amount to be repaid to your existing lender when you move your mortgage.
Sealing Fee
This is charge made by some lenders when they release legal charge over your home.
Searches
Enquiries made at Land Registry, Land Charges Register and Local Authorities to ensure there is nothing to cause concern about title to land.
Stamp Duty
A government tax on price you pay for your home.
Standard Variable Rate This is normal variable rate charged by a lender. This rate can go up or down at any time at lender's discretion.
Subject to Contract
A provisional agreement made between buyer and seller, before exchange of contracts, which allows either side to back out without penalty.
Term
Length of time over which your mortgage loan is to be paid.
Title
Legal right to ownership of a property.
Title Deed
Legal document which transfers ownership of registered land.
Valuation
This is a report produced on behalf of lender. Lenders use this to decide whether they will offer a mortgage on property.
Valuation Fee
A fee paid by borrower for lender's inspection of property.
You may freely reprint this article provided author's biography remains intact:
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.