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.
| Near Prime |
A term used to describe an applicant with very limited adverse credit |
| Negative Equity |
A situation in which the value of a property has fallen to below the level of the loan secured on it. |
| Net Monthly Payment |
This exists only where MIRAS is available – home income plans still in existence from 1995. The monthly mortgage payment after MIRAS has been deducted but before the addition of any other fees. |
| Net Profit |
Relating to a self-employed person, net profit is income after running expenses and taxes have been deducted. |
| New Build |
A newly built property. |
| No Capital Raising |
Term used to describe a remortgage, which is exactly the same size as the mortgage it replaces. |
| No Income Verification |
Situation in which a mortgage is taken out without the need for the borrower to prove income. See also Fast Track Mortgage |
| No/Low Fee Mortgages |
A mortgage in which the usual fees - arrangement charges, booking fees and valuation fees - are either reimbursed to the borrower or paid by the lender. |
| Non Contributory Pension |
A pension scheme normally funded by an employer and into which an employee does not have to pay. |
| Non Status Mortgage |
A mortgage that is offered without the need for the borrower to prove their income. |
| Non Status |
A term used to describe a borrower who is unable to obtain "high street" finance. Typically this will be as a result of:
- Adverse credit
- Difficulty in proving income
- Age
- Non-standard property
|
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).
