Welcome to Home Mortgages
Fixed Second Mortgage Article
This is a selection made from among articles on Fixed Second Mortgage. For a permanent link to this article, or to bookmark it for future reading, click here.
Guide to Mortgage Terms
from: John MussiListed below is a guide to mortgage terms. It is a useful list of definitions of mortgage terms that may or may not be familiar to you.
Apr
This stands for Annual Percentage Rate. It takes into account all fees and other costs in connection with the mortgage as well as the lenders interest rate.
Advance
This is the actual amount of money that you borrow including any additional fees that have been added.
Base Rate
The UK 's core interest rate which is set by the Bank of England.
Bridging Loan
A temporary loan that enables you to complete the purchase of a new home before completing the sale of your existing property.
Capped Rate
These mortgages have a ceiling above which your payments will not rise.
Completion
The point at which the money to buy your new home is released to the seller and ownership is transferred to you.
Conveyance
Legal document which transfers ownership of unregistered freehold land.
Disbursements
The fees your solicitor has to pay such as; stamp duty, land registry, search fees, etc which will be added to your solicitor's bill.
Discounted Variable Rate
For a set period the interest rate charged will be a set percentage less than the standard variable rate.
Early Redemption Charge
If you repay your mortgage in full before a specified date you may be asked to pay an early redemption charge.
Equity
The difference between the value of your property and the amount of any outstanding loans secured against it.
Fixed Rate
These mortgages offer a fixed interest rate for a set period of time.
Freehold
The term used to indicate ownership of property and the land on which it stands.
Interest Only Mortgage
With this type of mortgage, the payments you make each month simply pay the interest on the amount you borrow. At the end of the mortgage term you must pay back the amount you originally borrowed.
Land Registration
This is a record held by HM Land Registry which lists the registered owner of a plot and any legal charge that may be placed on it.
Lease
A document, which grants possession of a property for a fixed period of time and sets out the obligations of both landlord and tenant such as; payment of rent and repairs.
Leasehold
Arrangement between a landlord and tenant where the landlord agrees for the tenant to lease the property for a fixed period of time.
Legal Charge
The legal document held by the Land Registry that identifies who has a claim on your property.
Mortgage
A loan you take out to buy your home.
Mortgage Deed
Legal document that you must sign to say that the lender has a legal charge over your property.
Mortgage Payment Protection Insurance
This is an insurance that will cover your mortgage payments should you be unable to work due to an accident, illness or involuntary redundancy.
Mortgagor
Person who borrows money to buy a property.
Mortgagee
Building society, bank or other company which lends money against the security of a charge over the property purchased.
Offer Letter
This is the official letter that the lender sends to you once all the referencing and valuations have been carried out satisfactorily.
Quotation
Document that illustrates the cost of your mortgage.
Redemption Penalties
These are the charges that some lenders make if you decide to move your mortgage.
Repossession
When a borrower fails to pay back their loan in accordance with its terms and conditions, the lender can exercise their legal right to take ownership of the property.
Repayment Mortgage
The payments you make each month will pay off the interest and an element of the capital.
Redemption Figure
This is the amount to be repaid to your existing lender when you move your mortgage.
Sealing Fee
This is the charge made by some lenders when they release the legal charge over your home.
Searches
Enquiries made at the Land Registry, the Land Charges Register and Local Authorities to ensure there is nothing to cause concern about title to the land.
Stamp Duty
A government tax on the price you pay for your home.
Standard Variable Rate
This is the normal variable rate charged by a lender. This rate can go up or down at any time at the lender's discretion.
Subject to Contract
A provisional agreement made between buyer and seller, before exchange of contracts, which allows either side to back out without penalty.
Term
Length of time over which your mortgage loan is to be paid.
Title
Legal right to ownership of a property.
Title Deed
Legal document which transfers ownership of registered land.
Valuation
This is a report produced on behalf of the lender. Lenders use this to decide whether they will offer a mortgage on the property.
Valuation Fee
A fee paid by the borrower for the lender's inspection of the property.
You may freely reprint this article provided the author's biography remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.
Fixed Second Mortgage Specific links
Fixed Second Mortgage News
US MBA’s Mortgage Applications More Than Doubled Last Week - Bloomberg
US MBA’s Mortgage Applications More Than Doubled Last Week Bloomberg - Today’s report also showed the average rate on a 15-year fixed mortgage decreased to 5.13 percent from 5.78 percent. The rate on a one-year adjustable ... |
US Stocks Rise, Led by Banks, Retailers; Amazon.com Jumps - Bloomberg
 RTT News | US Stocks Rise, Led by Banks, Retailers; Amazon.com Jumps Bloomberg - The rate on 30-year fixed mortgages dropped to 5.47 percent, a three-year low. Freeport-McMoRan Copper & Gold Inc. tumbled $3.77 to $18.05. ... US Stocks Rise, Led by Banks, Retailers; Amazon.com Jumps |
US Stocks Climb, Erasing Earlier Drop, as Stores, Banks Rise - Bloomberg
US Stocks Climb, Erasing Earlier Drop, as Stores, Banks Rise Bloomberg - The rate on 30-year fixed mortgages dropped to 5.47 percent, a three-year low. Stocks tumbled at the open after ADP Employer Services said payrolls fell by ... |
Long Bond Returns Most Since 1995 Amid ‘Bubble’ Talk (Update2) - Bloomberg
 Reuters | Long Bond Returns Most Since 1995 Amid ‘Bubble’ Talk (Update2) Bloomberg - “We’re on new ground,” said Barr Segal, a managing director at Los Angeles-based TCW Group Inc., which oversees $90 billion in fixed-income assets. ... Ben Bernanke: Fresh Attack on Mortgage Rates Fed will buy $500 billion in securitized home loans Treasury Yields Drop to Record Lows as Bernanke Cites Buybacks |
How and why mortgage fraud is growing - Philadelphia Inquirer
How and why mortgage fraud is growing Philadelphia Inquirer, PA - No one is willing to predict how much fraud may become a factor in what could be a surge in mortgage applications in the coming weeks, as fixed rates ... |
Freddie Mac shows weekly decline, Fed actions spur even lower rates - MarketWatch
 Washington Post | Freddie Mac shows weekly decline, Fed actions spur even lower rates MarketWatch - Coverage of home buying and selling, housing prices, mortgage information and home improvement. "Interest rates for 30-year fixed-rate mortgages fell for ... Mortgage Rates Tumble on Fed Debt Purchasing Plan (Update1) Mortgage Rates Hit Seven-Week Low Wall Street Breakfast: Must-Know News |
Banks help Bend, Ore., family overcome mortgage blues - Trading Markets (press release)
Banks help Bend, Ore., family overcome mortgage blues Trading Markets (press release), CA - Keri Wilson said the holder of their second mortgage, Minneapolis-based Homecomings Financial, has agreed to forgive the Wilsons' roughly $54000 lien in ... |
Financials, Retailers Help Lift Market - Briefing.com
Financials, Retailers Help Lift Market Briefing.com, CA - The 30-year fixed rate mortgage dropped to 5.65% yesterday, according Bankrate.com, and the Mortgage Bankers Association said that mortgage applications ... |
Mortgage rates fall for 2nd day; won't help all - The Associated Press
 Javno.hr | Mortgage rates fall for 2nd day; won't help all The Associated Press - The average interest rate on a 30-year fixed-rate mortgage Wednesday was 5.76 percent, the lowest it has been since February, according to HSH Associates, ... Fed Aid Sets Off a Rush to Refinance |
You want a mortgage? Why have you come to a bank then? - Mortgage Introducer
You want a mortgage? Why have you come to a bank then? Mortgage Introducer, UK - We have applied for a mortgage with Northern Rock as a second home remortgage, they have told her that she has a LOW credit score and therefore can only ... |