Finance Jargon D - L
D
Disbursements are the fees the conveyancer or solicitor has on the behalf of the client for e.g. searches, land registry and stamp duty etc. These fees and charges are normally added onto the final bill, but in some cases may have to be paid up front by the client, normally the searches.
E
Endowments are investment policy's that are used to repay a mortgage on maturity at the end of the agreed term. These do involve risk as the investments are usually linked with the stock market and they may fall short of their maturity target at the end of their term. Endowments are normally used along side an interest only mortgage.
Equity is the amount of capital (£) between the value of the property and the mortgage/loan secured on it e.g. Property Value £200,000 - £150,000 mortgage = £50,000 equity.
F
Freehold is where the land a property is built on belongs to the property. No lease or
ground rent is payable.
See Lease Hold.
Further advance in simple terms is asking your current mortgage lender for more funds secured against your property. If this is not possible due to various reasons e.g. income multiples this is one of the reasons why people opt for a secured loan.
G
Gifted deposit is a non repayable amount of property equity that as given as a deposit to help in the purchase of a property. A perfect example is a parent selling their house to a son/daughter for under the value of the property e.g. - Property Value £200,000 - sold for £150,000 to son/daughter = £50,000 is the difference between the value and the sale price.
H
Home Buyer Report is the next step up from a standard mortgage valuation, this is really type of valuation identify's more points to be taken into consideration of the true state of the property. A structural survey is the highest level of valuation, which takes into account of all areas in detail of the property providing a full breakdown of the true state of the property condition (identify's any hidden problems). List below are the 3 types of property valuations:
I
Interest Only Secured Loans/Mortgages is where you only pay the interest on the loan amount without repaying any capital back to the lender. So when the loan agreement comes to the end of the term e.g. Secured Loan for £25,000 over 20 years = You will still owe £25,000 after the 25 years is up. People take this option to keep the monthly payments low, they look to repay the amount owed by cashing in an investment, remortgaging or changing to repayment when their personnel finances allow. Repayment option is best.
J
K
L
The Land Registry hold all of the ownership records for land and property's in the UK. They also record mortgages and other charges against the property including restrictions and cautions. A Registry fee is normally incurred if there is a change to ownership.
A Lease Hold is where the land that a property is built on belongs to another owner, thus the property owner will have to rent the land for a set period of time called a lease to the Free Holder of the land.
Loan to Value (LTV) is the the total loan amount in ratio (%) to the value of the property:
Loan amount £150,000 Value of property £200,000 = 75% LTV
Calculation to work out the LTV: Property Value (£200k) Divided by the (£150k) loan amount = 75%
Free Quote- Online Application
- Secured Loan Rates
- Self Cert Secured Loan
- Bad Credit Secured Loan
- Debt Consolidation Secured Loan
- Unsecured Loans
- Bridging Loans
- Commercial Loans
Loan Tools
Low rates from 5.9% APR. The overall cost for comparison is
10.9% APR typical - variable. Over 60% of our customers receive a lower APR than the
typical rate shown; our highest rate is 19.9% APR variable. All loans subject to
status.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.