Leasehold Policy

Glossary of common terms used during the process of mortgage.
APR - This means Annual Percentage Rate. It allows you to compare the total cost of the mortgage. Instead of an interest rate, it includes front and ongoing costs to a mortgage. The formula for calculating APR is set by government regulation, and thus allows direct comparison of the cost of mortgages.

Capital and Interest Mortgage - This is when a part of your monthly payment helps to pay the mortgage in addition to paying interest on the mortgage. The payments are structured so that by the end of the term, your mortgage has been fully repaid. For this reason, this type of mortgage is also called a mortgage repayment.

Capped Rate - This is a mortgage where the lender agrees that the interest charges will never exceed a certain percentage. This lasts for a specified period of years. After the deadline, the rate usually returns to lenders standard variable rate. During the period capped the interest charges can move up and down with the interest rate lenders - but can not exceed the ceiling rate.

Cashback - An amount, either fixed or a percentage of a mortgage, you can choose to receive when you complete your mortgage. The lender can recover the money through a higher interest rate.

CAT marks / standards - is CAT for fair payment, easy access and decent conditions. They are created by the government in an attempt to provide consumers with simple, clear with simple financial products and easy to understand terms. A mortgage CAT will no fees, no redemption fees and interest will be calculated daily. It will also have a minimum loan of only £ 5000, offers flexibility and the repayment of the mortgage, it should keep you moving. Finally, you will not have to buy insurance by the lender and there will be no penalties should you find yourself behind, but can then catch up.

Completion - This is the end of the home buying process, when the funds are transferred and the keys. Happy moving!

Contract - A contract is a binding agreement between buyer and seller. As part of the purchase home after signing the contract by the buyer and the seller, it is then "swapped" between the respective lawyers to set a completion date. At that time, the contract is legally binding on both parties.

Assignment - This is the legal proceeding in which the property is bought and sold. You can do it yourself or hire a lawyer or conveyancer to perform specialized tasks for you. Buying a freehold is much less complicated than buying a lease.

Reduced - This is where the lender is a reduction on the standard variable rate guaranteed for a period of time agreed. After the promotional period ends, the mortgage typically moves to assess the lenders standard variable. Watch out for redemption penalties that overhang the initial discount period.

Early Redemption Charges - Redemption is when the borrower repays the principal and interest on the mortgage and therefore has the property outright. early redemption fees are the costs of paying the mortgage early, whether to buy the house outright, moving or re-mortgage. Always ask about early redemption fees before you agree a mortgage.

Endowment - Endowments are life insurance contracts with an investment to repay the outstanding capital on a single mortgage interest. There are few types of endowments, such as with profits 'and' unitised with profits "and" unit-linked. In the 1980s, they were sold by a seller.