jargon buster : j
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.
| Joint Income | The total income from 2 or more applicants applying together for a mortgage with the intention of sharing responsibility for meeting the monthly repayments. |
| Joint and Several Liability | A legal situation which occurs when two people agree to be legally equally responsible for something. E.g. Mr John and Mrs Jane Smith decide to buy a house and take out a joint mortgage. With the mortgage in joint names, they are both equally responsible for the WHOLE debt. 3 years later they separate and Jane moves out with her new partner. Jane may think she has nothing to do with the old debt. She is wrong she is just as responsible for meeting the full monthly payment as John. She can only leave the contract if the LENDER agrees to it irrespective of her feelings on the matter. The lender will only generally agree to it if John can prove he can afford the mortgage on his own for the indefinite future. |
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