Mortgage Lender
This
shows the company who is offering the mortgage loan.
It could be any financial institution that offers and/or
arranges mortgages. They could be an insurance company,
a building society, a bank, a friendly society, unit
trust managers and even supermarkets.
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Rate
This
shows the interest
rate which will be applied to the mortgage loan.
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Period
This
is the length of time the interest
rate applies.
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Max LTV
LTV = Loan to Value. This is the percentage which shows
the size of your mortgage vs the property's value.
For
example, if your mortgage is £80,000 and the property's
value is £100,000 the loan to value is 80%.
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Fee
The arrangement fee. This is what the lender charges
for setting up the mortgage and is is usually payable
on completion of the mortgage.
It
usually costs between £100 to £300 - or
can be "free".
Be
careful here: This fee may be payable, even if
your application doesn't succeed. And there may be other
charges for example an additional Application or Administartion
etc Fee. So check this beforehand.
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Incentive
This could be any type of incentive that the mortgage
lenders are using as a "loss leader" / marketing
ploy. A typical example would be a cashback.
ASU
= , sickness & unemployment insurance.
B+C =
Buildings & contents insurance.
U = Unemployment
insurance.
FTB =
First Time Buyers only.
MIP =
Mortgage Indemnity premium.
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Redemption
When
you take out a mortgage you have an agreement with the
lender. This covers the amount you repay and is set for
a particular period. The figure in the table shows the
particular period.
For
example you may have a mortgage for a three year fixed
interest rate of 5%. If you want to get out of this
deal before the three years is up you'd probably have
to pay a redemption penalty.
This
is a charge which supposedly compensates the mortgage
lender for the time and expense of your leaving.
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