jargon buster : u
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.
| Underwriting | The process by which a potential lender or broker determines the suitability of an applicant for the loan they have requested. The main consideration is the ability of the applicant to repay the loan they have requested. |
| Underpayment | Situation where repayments are reduced so that the mortgage is not repaid by the end of the agreed term. Some mortgages (flexible mortgages) allow for a specified level of underpayment. |
| Undertaking | A legal promise to complete a task. |
| Unemployed | An individual not in employment or receiving any regular salary; not self employed and could be in receipt of state benefits. |
| Unemployment Insurance | Insurance cover arranged by the borrower to cover them against redundancy. Normally packaged with accident sickness and unemployment insurance though is available separately. Strict criteria apply so its critically important to read all policy documents prior to purchase or agreeing to purchase. |
| Unencumbered | A property that has no loans or borrowings or other charges secured on it. |
| Unsecured Loan |
A loan that does not require any security. This may be because the borrower has a good financial position or credit rating. Such borrowers may be classed as 'Clean'. |
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