GLOSSARY - A
Additional
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The added interest rate which a lender may charge extra and above its base rate, based on the consumer’s financial circumstances. |
Advance |
Secured loan value to get hold of the funds. |
Application
Processing Charge |
Fees charged by brokers or lenders for the time spent in researching the mortgage market, and for the administration involved in ensuring your mortgage application are handled well. The fee is payable upon completion of the mortgage. |
ASU
Insurance |
This is an acronym of Accident, Sickness & Unemployment. Insurance to protect your monthly mortgage repayments in the event of you being unable to work due to one of the reasons specified in the insurance policy. |
APR |
Stands for Annual percentage rate. A yearly rate of interest that comprises fees and costs paid to obtain the loan. By law, lenders are required to disclose the APR so that borrowers can compare the loan prices. |
Arrangement
Fee |
This is one-off fee charged by some lenders for setting up the mortgage |
Added
To Loan |
The costs involved for a borrower while arranging a mortgage can be added to the actual loan value. This includes mortgage indemnity fees and/or arrangement fees and/or administration fees etc. |
Additional
Security Fee |
This is a Mortgage Indemnity Policy and it is required when the mortgage exceeds a certain percentage of the value of the property i.e. where the Loan To Value (see below) is more than or around 70%.. |
Administration
Fee |
Administration fee is a part of the arrangement fee and it will not be refunded by the lender if the mortgage does not proceed. |
Agricultural
Restriction |
This is a freehold covenant that prevents the occupancy of a property to those occupied in agriculture. |
Annuities |
An annuity is similar to the reverse of a mortgage. Instead of getting lump sum and paying back monthly amounts to a home lender, a lump sum amount is handed over and monthly payments are received. |
Apportionment |
The expenses like electricity, gas, council tax etc for the period in which you own the property shared between the buyer and seller of a property. |
Arrears |
When mortgage payments are not paid on time and are not made for the correct amount, borrowers are said to be in arrears. |
Authority
to Inspect the Register |
This is official notification provided in writing from the registered proprietor allowing another party to be given information from the proprietorship register.
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