Whether you've bought or sold a property before or not, there's lots of lingo to get your head around. Hopefully my explanations of these terms will help you.
IFA stands for “Independent Financial Adviser “ and means someone that has undergone specific training and has obtained specific qualifications to give financial advice and to act independently without being tied to only recommending the products of any particular lender.
This is a grant given by the local authority towards the repair of the improvement of a property.
These are the multiples that the Lender will apply to the borrower’s income when trying to decide what the maximum they will lend them for their mortgage is. It is worked out based on what you are likely to be able to afford. Traditionally you could borrow 3.5 times your salary but in headier times 5 or even 6 times a salary was available.
An up-front, one-off fee paid to the lender to protect them against the borrower defaulting on the loan. Usually charged on mortgages over 75% of the house value. Also known as MIG, Indemnity Guarantee Premium and Mortgage Indemnity Premium.
An up-front, one-off fee paid to the lender to protect them against the borrower defaulting on the loan. Usually charged on mortgages over 75% of the house value. Also known as MIG and Mortgage Indemnity Premium.
They are a way for people to save cash or shares without paying tax. They are also seen as a savings vehicle associated with interest only mortgages so you can repay the loan amount at the end of the term.
Also known as Death Duties it is a tax on everything you own when you die. It is a good idea to properly consider inheritance tax with a financial advisor especially if you have dependents.
This is when you given an estate agent or auctioneer the right to sell your property. The resulting agreement between you and them confirms the terms under which the “instruction” is offered by you and accepted by the estate agent or auctioneer.
This is when you are only paying off the Interest on the mortgage over the term of the loan. You are not actually paying any of the mortgage amount itself. For this reason Interest only mortgages are often tied in with some other type of investment vehicle which is set up to cover the initial loan amount at the end of the mortgage term. This investment vehicles include things like, ISA,s endowment policies and personal pensions.
This is where your assets sit if you have not made a will before you die whilst it is decided who inherits.
This is just as it sounds and is a commission that is paid by the Lender to intermediaries for introducing business to them. At the time of writing, if this intermediary receives a payment of more than £250 they are then obliged under the Mortgage Code to disclose to the borrower the exact amount they received. (This is also sometimes referred to as a Procuration Fee).
This is a listing of the contents of any given property. This can include things like kitchen utensils and garden equipment etc. As well as the condition a property is in and the structural fixtures, fittings and power points etc. It is generally associated with rental properties let on an AST.
