After conducting basic financial checks, your lender will make a temporary mortgage loan offer to give you an indication of the properties you can afford to buy. Later on, a successful, full application will also be required.
An APR enables you to compare financial products like-for-like by offering an annualised percentage that is standardised for all lenders and shows you the true cost of borrowing.
Should a borrower fail to meet their contractual mortgage payment in full, the account will fall into arrears by the sum that has not been paid.
The vendor will name an asking price at the beginning of negotiations for the sale of their property.
As part of your mortgage product, you may be offered a lump sum. This provides you with ‘cash’ to cover additional costs, like decorating, and is usually paid upon completion of your mortgage.
A solicitor or licenced conveyancer handles a range of legal paperwork as part of your mortgage application. This will include the transfer of property deeds.
County Court Judgement
A legal order from a county court asking for a debt to be repaid in England and Wales. Judgments are available to credit reference agencies to allow them to assess individuals’ credit-worthiness.
A credit lender will access information from Credit Reference Agencies and review your credit rating to gain a clear picture of your personal finances. This will be used alongside any personal data that you have provided to the lender, such as information from your application, to assess how your credit rating compares to the lender’s own internal credit assessment system results. This process influences their decision to grant the mortgage.
Some mortgage products include a period during which the lender will fix or provide a discounted interest rate. If you decide to pay off your loan prior to end of that period, your lender will usually ask for an Early Repayment Charge. This charge may also be incurred if a lump sum over a pre-agreed percentage of the loan is paid off during this initial period.
The difference between a property’s market value and the amount owed to the lender for the mortgage loan.
Before offering you a mortgage, your lender will commission a surveyor to produce this report in order to ensure that the property has been correctly valued. The valuation is used to judge the correct LTV, required to provide the right mortgage product(s) available and assist with the assessment of the mortgage application.
Variable rate mortgage
A mortgage product in which the lender is able to vary the interest rate, either up or down.