jargon buster : g
Below is a glossary of the terms you may not be sure about now and should understand when taking out a new mortgage. These are not legal definitions but clear everyday descriptions to help you make a more informed choice.
Any examples given are designed solely to simply illustrate the basics of the concept and are not to be taken as anything beyond that.
A lot of mortgage adviser regularly used terminology were banned in October 2004 and replaced by industry standard phrases to help consumers understand things better. The old terms have been included for reference purposes.
No information given here should be taken as advice.
| General Conditions | The standard conditions that apply to a mortgage, as set by the lender. |
| Geographical Restrictions | Lenders may not offer mortgages for the purchase of property in certain districts or areas, typically those geographical areas that are regarded as high risk. Some smaller lenders may not offer loans for properties that are outside their local area. |
| Gross Annual Income | Total income received per year, before taxes are deducted. |
| Gross Monthly Payment | The monthly amount a borrower will have to repay, before deductions for MIRAS (Mortgage Interest Relief at Source) is applied. |
| Ground Rent | A fee that a leaseholder pays to the freeholder (the owner of the land) every year to provide certain services, for example the maintenance of the grounds in which the property stands. |
| Guarantor | A person, other than the borrower, who guarantees the mortgage repayments in the event the borrower defaults. Typically the guarantor will be a parent or relative. Sometimes used to support a borrower with insufficient income to qualify for a mortgage. Anyone asking to be a guarantor will be required to seek independent legal advice and sign forms that they have done so. |
Your home may be repossessed if you do not keep up repayments on your mortgage.
The actual rate available will depend on your circumstances. Ask for a personal illustration.
Think carefully before securing other debts against your home.
There will usually be a fee charged when we successfully arrange a mortgage / re-mortgage. The amount will depend on the complexity of your requirements and your personal circumstances, typically the fee charged will be 3% of the mortgage advance (minimum fee £3,000 up to a maximum of £10,000).
The overall cost for
comparison is
8.2% APR