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accident, sickness and unemployment insurance
(ASU)
- Insurance cover arranged by the borrower to
protect against inability to meet mortgage payments.
This cover should be more accurately described as accident, sickness and
redundancy insurance as unemployment cover is generally seriously restricted
to cover only events that are entirely beyond the control of the insured
person. Typical exclusions include dismissal following professional
misconduct and any act of voluntary redundancy. The accident and sickness
cover will also be subject to major restrictions such as any act of
self-injury or any injury related to the use of alcohol or drugs.
accountant
- a chartered or certified accountant.
accountant's letter
- a letter of income confirmation provided by an
accountant (normally chartered or certified).
Some lenders may accept an accountant's letter in lieu of audited accounts.
Such confirmation is more likely to be accepted if the loan-to-value ratio
is below a certain level and it is normally used only for the self employed
or controlling directors.
added to loan
- a reference to the additional costs associated
with arranging a mortgage such as
High loan to value fee or
arrangement fees, which can be incorporated into the amount you borrow.
Fees that may be added vary by lender. Care should be exercised when the sum
of the loan and any costs added to the loan may cause the total advance to
exceed a given
loan-to-value . In certain cases additional conditions may apply.
additional security
- When
lending exceeds a certain
loan-to-value lenders may require additional security.
The simplest form of additional security is a single mortgage
loan-to-value. Alternatively lenders may accept other security such as
cash or shares being deposited with them or a charge over another property.
administration charge
- see also valuation fee. Some lenders will reserve a proportion of the fee charged
for the valuation to cover their own costs. This element of the valuation
fee may not be refunded should an application not proceed even if the
valuation has not taken place.
agricultural tie
- restriction placed on certain rural properties which requires that the
land adjoining a residence be actively used for farming.
annualised percentage rate (APR)
- a definition intended to identify the true cost of borrowing and to
provide the consumer with a method of comparing the true costs of different
types of loan.
Mortgage loans were originally excluded from a requirement to quote an APR,
possibly because it is a highly inappropriate way of comparing mortgage
loans. APR was designed more to reflect the cost of different types of
hire-purchase contracts which, at the time the legislation was drafted, were
frequently quoted on flat and fixed basis giving headline rates which were
often half the APR. It is a legal requirement that a true APR figure be
provided with any loan illustration..
annuity mortgage
- alternative term for a
capital & interest repayment mortgage
applicant
- anyone applying for a mortgage
applicant type
- will indicate whether the applicant is a first time buyer or
self-employed, for example.
arrangement fee
- fee charged by a lender for setting up the loan. Normally payable upon
completion but may sometimes be added to the loan
arrears
- mortgage payments that have not been made by the due date in accordance
with the
mortgage deed
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A
accident, sickness and unemployment insurance (ASU)
accountant
accountant's
letter
added to loan
additional
security
administration
charge
agricultural tie
annualised percentage
rate (APR)
annuity mortgage
applicant
applicant type
APR
arrangement fee
arrears
ASU
Introduction
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