Whether you are a First time buyer, Home mover or Remortgaging your existing home you are bound to come across the minefield of words your Adviser or Estate agent may bombard you with. Below is a list to help you understand what these would mean to you:
This is good news – it means that your application for a mortgage (or any kind of financial service) has been agreed in principle, subject to such things as the valuation of your property or confirmation of your income.
Another fairly self-explanatory term – it’s what you might be charged by the lender for arranging the mortgage. Generally, you need to pay this fee on completion of the purchase, but sometimes the amount can be added to the loan itself.
This is the basic rate of interest determined by the Bank of England.
The moment you’ve been waiting for! All the legal necessities have been completed and your lender actually advances the funds for the purchase – the funds usually being deposited into an account held by your solicitor.
Another critical milestone in your calendar – completion of the sale of the property to you, when the keys are handed over.
This is what you have to pay a solicitor (or a licensed conveyancer) for doing all the legal work for registering the property in your name. The final bill for this service should also include stamp duty, land registry fees and his or her disbursements.
If you take out a mortgage or change an existing one on a property, this needs to be registered with the Land Registry, who will make a charge for amending the records.
This is a simple ratio or percentage that expresses the proportion of a loan to the value of the property. In other words, if you’re looking to borrow £150,000 on a property valued at £300,000 you’d need to secure a 50% loan to value rate.
Is something you clearly want to avoid, since it arises when the extent of your borrowing is greater than the current market value of the property.
The fee that a Mortgage Lender will pay to an introducer for introducing the business to that lender.
These days, the term is better and more clearly known as Early Repayment Charges – the penalty you’ll incur if you wish to repay your mortgage before the end of its full term.
It will be important to make sure that there are no plans in the neighbourhood that might affect the future value of your home. For this, you need to ask the local authority to do a search for you and, of course, there is a charge.
This is a tax on buying property. It’s applied on a sliding scale, so that homes costing up to £125,000 pay no stamp duty; home costing between £125,001 and £250,000 attract 1% stamp duty; home from £250,001 to £500,000 attract 3%; and those costing £500,001 or more attract 4% stamp duty. Please note: Stamp duty brackets change from time to time so be sure to check the Direct.Gov.Uk website for the latest figures.
The length of time over which your mortgage loan is to be repaid.
A fee paid by the borrower for the lender’s inspection of the property by a valuer. Normally paid on application.
JLM Mortgage Services Limited was founded in 2002 with over 20 years of experience within both the Estate Agency and Financial Services fields.
Over the years we have helped thousands of new and old customers, Click Here to hear what they have said of the advice and service we have provided.
We can meet customers at any of our offices, at a time to suit you, or can offer a service by email, telephone, post or even arrange a visit to your home or office.
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JLM Mortgage Services Ltd is registered in England No. 470 1803. JLM Mortgage Services Ltd is authorised and regulated by the Financial Conduct Authority, FCA No: 300629. Your home may be at risk if you do not keep up payments on a mortgage or any loan secured upon it. Think carefully before securing other debts against your home.