:: UK JARGON INFOGUIDE
Debt Consolidation
To consolidate your debts means instead of several debts where you are
struggling to meet all the repayments you have just one manageable debt
with a repayment you can afford. However you are actually increasing your
debt and paying it over a longer period allowing lower monthly repayments
Defaults
If you have defaulted on a loan or mortgage it means that you are more
than 30 days behind the date your repayment was due. This will be marked
on your credit record and would lead to a CCJ if no payment was received
or received very late.
Deposit
The amount of money you put towards the purchase of the property. Most
lenders will require at least 10% deposit of the purchasing price. However
some lenders will lend 100% or more but only to Status Applications with
no credit history.
Discounted Rate
Mortgage
This means interest charged on a mortgage is at the variable base rate and
applies to the mortgage, less a discount for a set period.
This means the rate and so your monthly repayment will go up or down
depending on the variable base rate changes. This will remain until the
end of the discounted rate period. These type of mortgages tend to lock
you into the mortgage for a minimum limited period and may include a
penalty clause if you try to swap.
Debt
Money owed to a lender by a borrower.
Deed of covenant
This is a document which confirms that the buyer of a property will comply
with the rules and conditions affecting the property which can be found in
the Title Deed or Lease.
Deeds
These are the documents which contain all the information about a property
such as the owner and the rules affecting the property. These are often
held by the mortgage lender to ensure they can take possession of the
property should you default on the repayments.
Depreciation
The decline in value of your property.
Detached
Refers to a property which is not attached to another on either side and
is therefore free standing.
Down payment
A lump sum paid when contracts are exchanged. It can also refer to the
down payment made on a new property in order to reserve it for you.
