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.
| Occupational Pension |
A pension scheme run by trustees which and which may be either fully or partially funded by an employer. |
| Offer of Advance |
Sometimes informally known as a mortgage offer. This document details the terms and conditions upon which the lender is prepared to make a mortgage loan. |
| Offer Letter |
See offer of Advance |
| Ombudsman |
The independent body that has responsibility for investigating complaints about member institutions. In relation to mortgages, this is the Financial Ombudsman Service. |
| Open Market Value |
See Fair Market Value |
| Other Income |
Income that is in addition to basic salary. |
| Outgoings |
See Liabilities |
| Outstanding |
The amount of money remaining to be paid. |
| Overhang |
The time period which an early repayment charge is payable after a special rate period has ended. |
| Overpayment |
Situation where repayments are increased so that the mortgage is repaid before the end of the agreed term. Some mortgages (flexible mortgages) allow for overpayment, but others may impose early redemption penalties for overpayment.
Also called excess payments |
| Over-riding Interest |
Where the interests of one party over-ride another party’s. In mortgages this is where a person over 18 who has made the property their home can override the right to repossession in the courts. Lenders seek to prevent this from happening by asking all parties over the age of 17 signing a “consent to mortgage” form. |
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).
