First Time Buyer – Jargon Buster
Are you a first time buyer? Is your head spinning with all the mortgage jargon that is being thrown at you? Here are a few jargon busting explanations to help you.
- Arrangement fee
Some mortgages and financial products come with an arrangement fee which can range from a few pounds to over £1,000. You need to weigh up your options carefully; some mortgages with low arrangement fees may have a relatively high interest rate, for example. - Completion
Completion is the last stage in the mortgage process when the property is legally transferred to you. For remortgages this is the day the mortgage transfers from one lender to another. - Conveyancer
This is a professional legal expert, usually a solicitor, who handles the contractual arrangement between you and your mortgage lender. They will be responsible for registering your property with the land registry and ensuring that your mortgage deed is correctly executed. - Detailed building survey (full structural)
The most detailed kind of survey that you can request when buying a home, a surveyor will assess the building thoroughly from foundations to roof. A detailed building survey will include an appraisal of the construction of the property and a technical analysis of any significant defects, along with a suggestion of work that would need to be done to fix the defects. - Loan to value (LTV)
Loan to Value is the mortgage loan as a percentage of the value of the property or purchase price. For example a particular buy to let mortgage could be expressed as a ‘75% LTV buy to let mortgage’ which means that you would be able to borrow no more than 75% of the property’s value so you’d have to find a deposit of at least 25% to apply for a buy to let mortgage in this case. - Mortgage Deed
This is a legal document that gives the lender a legal interest in the property covered by the mortgage. Signed by both homeowner and lender, the mortgage deed confirms that the homeowner has used the property as collateral for the mortgage loan. - Term (of a loan or mortgage)
This refers to the number of years that you agree repay your mortgage over.
This entry was posted on Monday, October 31st, 2011 at 9:21 am and is filed under First Time Buyer. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.