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Technical Terms Used In Mortgage Agreements

Mar 23, 2008
If you are unsure about any part of your mortgage agreement, it is essential that you contact your solicitor. However, it you just need a simple explanation of some of the terms they use to describe the mortgage contract you may check down this list for a simple description of a word or phrase.

* APR, is an abbreviation of the phrase Annual Percentage Rate and will represent the figure that is the total amount you are being charged for the credit.

* Assignment, this is where legal rights to a property transferred to a third party such as a mortgage lender.

* Certificate of Title, is a document that will be prepared by a solicitor for the land, confirming all the details are in order prior to completion.

* Charge, this refers to the mortgage company having security against your house.

* Completion, this is the end of the transaction, when all the money is handed over and the legal side is completed.

* Contract, this is a legal agreement drawn up between the seller and the purchaser. Each party must sign the document, then, the obligation to sell the property and for the other party to buy it is legally binding.

* Conveyance, this document transfers the ownership of the land.

* Disbursements, these are the various amounts of money that your solicitor has to payout to many different people and organisations, for services they have provided in connection with the house transaction.

* Endowment, this is an insurance policy that when combined with the mortgage should provide for paying off the loan at the end of the mortgage, life.

* Equity, this is the difference between how much you owe on the mortgage, and how much the house is worth.

* Freehold, means that you own the land the house stands on.

* Ground rent, the amount you have to pay annually if you do not own the land that the house sits on.

* Interest rates, this relates to how much interest you are charged each month on your mortgage payment.

* Land Registry fee, this amount of money is paid to the government land Registry to pay to have the property registered in your name.

* Lease, this is a contract between you and the owner of the land if the house is not freehold.

* Local authorities search; this refers to the search made by the buyer's solicitor at the local council offices. The intention of the search to find out every detail about the surrounding area. Such as, if the property is legally connected to the drains and especially any proposed planning situations that may affect the purchase of the house.

* Mortgage, the loan, by which will pay for your house.

* Mortgage offer, this document will tell you that the mortgage company is prepared to offer your mortgage and will give exact details of their offer.

* Remortgage, this is a new loan on a property that you already own.

* Retention, and amount of money back at the mortgage company until you have completed repairs to the property.

* Stamp duty, this is a tax imposed by the government that varies depending upon the price you paid for the property.

* Standard offer conditions, these are the terms under which the mortgage company offers to lend you money to buy your house.

* Title, this refers to your right to own the property and is controlled by the government.

* Title deeds, documents which prove that you your home which are recorded at the Land Registry.

* Transfer, a document that transfers details of the ownership of the property

* Transfer of equity, the process of adding and removing names from a mortgage document.

* Valuation report, this is a report prepared on behalf the person buying a house, and deals with the condition of the property, and relates to how much the mortgage company will be prepared to loan to the potential homebuyer.
About the Author
Joe Kenny writes for Glitec.org, offering mortgages and loans or visit Rebuild.org for great mortgage loans quotes.
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