Industrial home loan This is a loan used to buy a commercial premises. The property itself is used as security to protect the lender from non-payment.
An enthusiastic endowment plan is designed to build up a cash share higher sufficient to repay the mortgage after the loan title
Commercial remortgage A commercial remortgage is a new mortgage loan that’s agreed on commercial premises without actually moving. This can either be with the existing lender or a new one. Surplus funds from new loan can be used for improvements or debt consolidation.
End This is the final stage of the conveyancing process, when legal ownership of a property transfers from one person to another.
When you submit an application for a home loan, the financial institution will assess the application and you can prize ‘points’ according to the answers
Conveyancing This is the term used to describe the legal process of buying and selling property and involves the transfer of the title deed from one owner to another.
Condition Judge Reasoning (CCJ) This is a judgement made in a County Court for non-payment of a debt. If a CCJ isn’t settled within 30 days of the judgement, it will appear on the credit register for the next six years.
Personal line of credit Companies that take out a mortgage for commercial purposes can sometimes establish a credit line with their lender for future lending purposes.
Credit history The total number of points you are awarded is known as the ‘credit score’. Those with low credit scores may be refused credit terms.
Credit Resource A lender can request a report from one or more of the main Credit Reference Agencies in the UK. This will detail your recent credit applications. It will also show whether you have missed payments and highlight other credit concerns.
Debt consolidation reduction Using one new loan to pay off other debts. A remortgage is often used for this purpose, as the interest rates charged on mortgages are generally much lower than other forms of debt.
Decision-in-idea A lender can normally tell you if you are likely to be successful in applying for a loan by giving you a ‘decision-in- principle’. This is not a formal mortgage offer.
Deposit When buying a property, a deposit will normally have to be paid in advance towards the total cost. Generally, this is 10% of the purchase price.
Disbursements (conveyancing) Fees charged by a solicitor to cover costs working on your behalf. An exmple might be Local Authority Searches.
Disregard Purchase price Price of a property that has been reduced below the open-ple of this might be a Right to Buy.
Discount RateA rate out of financial attract that’s discounted, otherwise ‘discounted’, at a consistent level beneath the lender’s Important Adjustable Price (SVR). A good example would be a 2% write off for 12 months.
Guarantee This is the difference between what is owed on the mortgage and what the value of the property stands at on the open market. If the property is worth payday loans no bank account less than is owed, this is called ‘Negative Equity’.
Employed/Worker This is a person who has an open-ended contract of employment and has income tax and national insurance contributions deducted from their salary.
Endowment A type of long-term savings policy sometimes used to help repay an ‘Interest Only’ mortgage. It will also include life insurance to help repay the loan should the policyholder die before completion of the term.
Exchange (regarding deals)A type of long-term savings policy sometimes used to help repay an ‘Interest Only’ mortgage. It will also include life insurance to help repay the loan should the policyholder die before completion of the term. This is one of the final stages of a property purchase process, normally about 1-2 weeks before completion, when all the conveyancing is finalised, a mortgage offer is in place, the deposit is paid and a completion date has been set. When contracts have been exchanged, it is a legally obligation to buy the property and you could be sued for failing to complete.
