Mortgages - Jargon Buster 2016

Houses

Annual Percentage Rate (APR)

This rate takes into account all the costs, interest charges, arrangement fees etc. Theoretically it allows you to compare mortgages on a like for like basis. However, you need to be careful as different lenders calculate it in different ways.

Capped Rate

The interest rate can go up and down. This is usually referred to as the Standard Variable Rate. However, it won't rise above an agreed rate - the Cap. If the standard variable rate goes above the cap, you'll only pay the capped rate. The capped rate usually lasts for an agreed period.

Conveyancing

The legal process involved in buying and selling properties.

Deeds Administration Fee

An administration charge made by lenders when you repay the mortgage to release the deeds of the property. Also known as a sealing fee.

Discounted Rate

A guaranteed reduction in the standard variable mortgage rate. The discount usually lasts for an agreed period.

Early Repayment Charge

If you want to pay off your mortgage early, you may have to pay a fee during the early years of the loan. The fee may be equivalent to a certain number of month's interest, or it could be a percentage of the loan. Some lenders only charge an early repayment charge during the time of the special deal they offer. Others may tie you in for a number of years afterwards. If you think you may want to repay early, check what conditions apply before you decide which type of mortgage you want

Exchange of contracts

The point at which the buyer and seller have legally committed themselves to the sale and purchase of the property.

Fixed Rate

The interest rate is fixed for a set period.

Freehold

This is when you own the property and the land that it is on.

Interest Only Mortgage

With this kind of mortgage only the interest on the loan is paid, so the capital sum borrowed does not decrease. You are responsible for arranging a suitable investment at the same time as taking out the mortgage which may produce a capital sum sufficient to repay the mortgage loan at the end of the mortgage term.

Leasehold

This is when you own the property for a set number of years. After that it goes back to the freeholder. Most flats in England are leasehold.

LTV

Loan to Value. This is the amount of the mortgage expressed as a percentage of the value of the property, or the price you are paying for the property. So a £60,000 mortgage on a £80,000 property would mean an LTV of 75%.

Remortgage

This is when you switch your mortgage from your current lender to another one. You take out a new mortgage to repay your current one. You may be able to get a better rate that saves you money.
Repayment / Capital and Interest Mortgage

Your monthly payments are partly to pay the interest on the amount you borrowed, and partly to repay the amount you borrowed. At the end of the mortgage, the capital and the interest is all completely repaid. It is also known as a repayment mortgage.

Sealing Fee

A charge made by lenders when you repay the mortgage to release the deeds of the property. Also known as a deeds fee.

Stamp Duty

Government tax payable on the purchase of property. It ranges from 1% on properties over £125,000, up to 4%.

Standard Variable Rate

A lender's standard mortgage rate. This goes up and down with interest rates generally.

Term

The length of time the mortgage runs before it must be fully repaid.

Title

The legal right of ownership of a property.

Title Deeds

Documents showing who owns a property. Where the property is registered at HM Land Registry, the Registry no longer issue a document of title known as a 'Land Certificate'. The Register is now fully electronic and online via the Land Registry's Website and property owners can now verify ownership of their home personally and obtain copies of their registered entry for a small fee. A copy of the registered entry may be provided by the Solicitor acting for the borrower on completion of the purchase transaction.
Valuation

A simple check of the property to establish how much it is worth and whether it is suitable to lend a mortgage on. The cost of the valuation is payable when you apply for your mortgage and is dependent on the purchase price or valuation of the property.

Welcome to the English and Welsh Housing Associations website

Purchase of a home is an important task in a person’s life. But for many people, their financial situation simply doesn’t enable them to do so. This is where we come in. We are here to help people find suitable housing, taking into account a number of issues such as the location of the property, the estimated value of the property, and the safety of the neighbourhood.

If you are in need of help we can find you a property that you can safely call your home sweet home. Please contact our English and Welsh Housing Associations experts for more information.

 

Please Note

This website has nothing to do with the old Glamorgan and Gwent Housing Association website.

For more information regarding the Glamorgan and Gwent Housing Association please contact them directly.