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.
| Main Residence |
The property in which a person resides for the majority of the time. Also known as the 'principal private residence', it can often be important for tax purposes. |
| Maintenance |
Legally enforceable payments made to contribute to the costs of bringing up a dependent, usually following a divorce. |
| Maisonette |
A flat or apartment with more than one floor. |
| Margin |
The number of percentage points that a lender adds to the index value in order to calculate the variable interest rate payable on a mortgage. |
| MCCB |
Mortgage Code Board, the voluntary regulator that existed up until October 2004. Replaced by the Financial Services Authority |
| Mews |
A marketing term invented to improve the marketability of terraced housing |
| Minor |
A person under the age of 18. |
| MGI |
See higher lending charge |
| MIG |
See higher lending charge |
| MIP |
See Higher lending Charge |
| MIRAS |
Acronym standing for Mortgage Interest Relief At Source, a tax relief scheme that expired for the vast majority of mortgages on 1st April 2000. Available now only on certain lifetime mortgages taken out before 1995. |
| Mortgage |
A loan secured by having the first charge on a property. A legal document that pledges a property to the lender as security on a loan, incorporating the legal contractual rights of each party. |
| Mortgage Code Arbitration Scheme |
This is no longer in existence, replaced by the Financial Ombudsman Service. A scheme, administered under the Mortgage Code, that allows disputes between borrowers - or prospective borrowers - and lenders to be resolved without court action. |
| Mortgage Deed |
The legal document that confers ownership or title to a property. |
| Mortgage Disability Insurance |
An insurance policy under which monthly mortgage payments will be maintained for a specified period in the event that the policyholder suffers a covered disability. |
Mortgage Indemnity Guarantee (MIG)
|
See Higher Lending Charge |
| Mortgage Quotation |
A general estimate monthly payment figure, useless until a full application is submitted. |
| Mortgage Subsidy |
Payment made by some employers to employees to help cover the cost of mortgage repayments. |
| Mortgage Term |
The period of time over which a mortgage loan must be repaid. |
| Mortgage Types |
The type of mortgage. May be fixed, variable, capped, discount, tracker, stepped or other type of mortgage. |
| Mortgage Valuation |
A survey to assess the value of a property. Usually conducted by a professional surveyor, this is the cheapest and simplest type of property survey and is usually the minimum survey required by a lender. |
| Mortgagee |
The lender in a mortgage. |
| Mortgagor |
The borrower in a mortgage. Difference is you are the donor when you give blood and the receiver is the donee. |
Multiplier (Income)
|
See Income Multiplier |
| Mortgage Offer |
This document details the terms and conditions upon which the lender is prepared to make a mortgage loan. |
| Mundic Block |
A form of concrete construction found generally in Cornwall. One of the more difficult construction types to secure a mortgage against. Most lenders require evidence of repair work carried out by an approved scheme. |
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).
