Mortgage Terms
Below are several mortgage terminologies explained in brief for better understanding.
Advance This is the money you have borrowed plus all the additional fees.
Base Rate In UK, this is the base interest rate set by the Bank of England.
Bridging Loan This is a temporary loan that enables you to purchase your new property before you are able to sell your old property.
Conveyance This is the legal document that transfers ownership of unregistered land to you.
Disbursements These are all the fees of your solicitors, such as stamp duty, land registry, search fees, etc.
Early Redemption Charge / Pre-Payment Penalty / Redemption Penalty This is the amount of money you have to pay if you pay your mortgage in full before the time finished.
Equity This is the amount of your property in the market minus all loans that it has.
Freehold This means the ownership of a property and the land.
Land Registration This is a legal document that records the ownership of a property and land.
Legal Charge This is a legal document that records the data of the rightful owner of a property or land.
Mortgage Deed This is a legal document that stated that the lender has a legal charge over your property.
Mortgage Payment Protection Insurance This is the insurance that insures your mortgage payment arrives on time in case you are unable to pay your mortgage.
Sealing Fee This is a fee made when the lender releases the legal charge over your property.
Subject To Contract This is an agreement between seller and buyer before the actual contract is made.