House Or Flat Buyer's Report
A more detailed report than the simple financial valuation survey carried out on the property for the lender's benefit.
Household Insurance
There are two main types: buildings insurance for the fabric of the building and contents insurance for the contents of the property.
Housing Association
An organisation whose purpose and aim is to provide housing. It is not in business to make profit but to provide homes for people who apply by putting their names on the housing association list.
I
IFA
Independent financial advisor.
An advisor who is not affiliated to a financial company.
Illustration
A report which shows the borrower how much the monthly payments and other expenses will be for a specific loan or mortgage.
Impaired Credit
If the borrowers credit record is impaired they will usually need a sub-prime mortgage.
These mortgages usually charge a higher interest rate than normal due to the borrower's credit risk being higher.
Income Protection Insurance
Insurance to provide protection if the borrower is unable to make payments as agreed.
Individual Saving Accounts (ISA)
Launched in April 1999, these tax efficient plans permit investment in shares, stocks, insurance and cash deposits.
Individual Voluntary Arrangement (IVA)
Introduced under the 1986 Involvency Act, their intention was to allow an individual to avoid bankruptcy and maximum affect as effective restitution to creditors as possible.
IVA is much more preferable to bankruptcy as the debtor can continue to trade and hold company directorships.
Inflation
A percentage increase in prices or earnings which varies in accordance with the national average earnings and increases in prices.
Inheritance Tax
A tax that is payable on a person's estate when they die. The percentage level is set by the government.
Interest Only
A mortgage where the borrower pays off the interest on the loan only.
Interest Rate
A percentage of the borrower's loan is charged by the lender each year for loaning the money.
Intermediary
A third person who arranges or sorts out financial packages for a borrower.
Introducer
An individual who introduces a loan to a borrower.
IPT
Insurance premium tax.
J
Joint Application
A mortgage application involving more than one borrower.
Joint Liability
Two borrowers who are legally responsible for a financial loan or debt.
K
L
Land Registry
A registry of property records including ownership.
Land Registry Fees
A fee payable to change an entry in the land registry records following an ownership transaction.
Landlord's Reference
A reference from a previous landlord about the conduct of a tenant. This will include whether the rent has been paid on time.
Late Charge
A fee that a lender will charge the borrower for late payments.
Late Payment
A payment that a lender receives after the date that is was due.
Leasehold
A property which is built on land that is not owned by the property purchaser.
The lease will be for a fixed period.
Legal Charge
A legal way in which the lender enforces their rights to a property. This charge is recorded at the land registry.
Legal Mortgage Fee
A fee charged by the lender's solicitor for creating the lender's charge over the property.
Lender
A financial organisation offering mortgage products.
Lender's Arrangement Fee
A fee chaged by the lender for arranging a loan for a buyer.
Lessee
The legal term for the person who the lease in granted to.
Lessor
A company or person who grants a lease to the lessee.
Liabilities
Outgoing paymens and debts that the the borrower is legally responsible for.
Libor
London interbank offered rate.
The rate that the banks buy and sell money among themselves.
The rate varies daily, depending on the base rate.
Life Company
A shortened term for a life assurance company.
Life Insurance
In reality, life assurance. A policy paid out upon the death of the named insured person.
Loan
An amount of money to be borrowed.
Loan Application
The application form needed to be completed to apply for a loan.
Loan Application Fee
Fee charged by the lender for a loan application.
Loan Authority Search Fee
A fee payable for the local authority search.
Loan Consolidation
A means of joining together small loans into one large loan.
Loan Illustration
A list of figures giving examples of the monthly expenses surrounding a mortgage plus other costs, such as the set-up fees.
Loan To Value Ratio
Given as a percentage, it is the ratio of the loan amount to the property valuation.
Local Authority Search
An official search, usually initiated by a solicitor during conveyancing, to find out the status of a property and ascertain any proposed or planned changes in the local area, such as planning permissions or enforcement notices.
Loyalty Bonus
A bonus payable for loyalty to a lending company.
They are usually paid out in the form of a temporary reduction in interest or favourable terms when setting up a mortgage.
M
Monthly Repayment
The amount of money paid to the lender each month to pay back to loan.
Mortgage
A specific loan for buying property or land.
Mortgage Code
The code of practice that the mortgage provider adheres to.
Mortgage Deed
A document establishing a loan on property or land.
Mortgage Term
The period of time before the mortgage loan has to be repaid.
Mortgage Payment Protection Insurance
MPPI.
An insurance to protect the lendee's mortgage payments.