:: UK JARGON INFOGUIDE
Adverse Credit
This term is used to describe Credit Problems due to a poor credit
history. The borrower may have CCJ's, Mortgage Arrears and other
credit debt repayment. Abusing credit or failing to meet credit
repayments leads to Adverse Credit. When used to describe: Adverse
Credit Mortgages or Adverse Credit Loans they mean Mortgages or Loans
for people with Credit Problems or Poor Credit Rating
APR
APR or Annual Percentage Rate is the actual cost of interest on a
loan/mortgage and takes into account the amount of interest you will
pay and the term of the loan/mortgage. So the higher the APR the more
you will pay, the lower the APR, the less you pay. This is the easiest
way to compare loans to gain the best rate for you.
Arrangement Fees
Lenders are known to charge arrangement fees or fees to cover
administration and reserve the funds for the mortgage. These fees are
usually added to your mortgage.
Arrears
Mortgage Arrears is used to describe missed, late or under paid
mortgage repayments. If you stay in arrears you are likely to end up
with a County Court Judgment or CCJ. This can also be described as
defaulting on your mortgage or Mortgage Defaults. A limited number of
lenders will consider lending credit to people with previous credit
problems.
Accident, Sickness, and Unemployment Insurance
The insurance pays a percentage of your usual monthly mortgage payment
including any insurance if the borrower cannot work because of
accident/sickness or unemployment/redundancy and usually for a maximum
of 2 years or until back to work.
Always read the terms before taking on this kind of insurance.
Administration Fee
Some lenders charge this fee to cover administration costs and the
sourcing funds. This fee is not refundable if the mortgage application
does not proceed. This can also be called the arrangement fee.
Applicant
The person applying for a mortgage or a loan. Single applicant is just
one person and just their income or dual application that takes both
applicants incomes and details into consideration
Access
Any means by which a person can enter property. This is important to
find out especially if your access goes through other property or
shared entrances etc.
Addendum
A latin term describing an addition or change to a contract.
Administrator
A person given authority to manage and distribute the estate of
someone who died without leaving a will.
Agreement in principle
The first document provided by a mortgage lender which shows any
prospective seller that you can actually get a mortgage to cover the
purchase price. It also provides a handy reference for some of the key
features of your mortgage, and what your repayments will be for the
introductory offer period, if there is one.
Application
A document detailing a potential borrower's income, debt and other
obligations to determine credit worthiness. This can initially be done
online but you will eventually have to complete an actual signed
application.
Appreciation
An increase in the value of a home or other property. You can use this
equity, the difference between value and what you still owe the
lender, to pay for home improvements, new car or debt consolidation.
Arrears fee
This is charged on a monthly basis to cover additional administrative
costs by most lenders where your mortgage account is one or more
monthly payments in arrears.
