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Advance:
This is the amount that the borrower borrows from the creditor
along with the additional fees.
Equity: It is the value of
your property that it has in the market minus all the loans that
it bears.
Bridging Loan: It is a
temporary loan that allows you to buy a new property before
selling the old property.
Disbursements: This includes
all the fees of your solicitor such as land registry, stamp
duty, search fees etc.
Base rate: This is the
interest rate particularly used in the United Kingdom, which is
set by the Bank of England.
Conveyance: The ownership of
the unregistered land is transferred to you through this legal
document known as Conveyance.
Sealing
fee: When the lender or the creditor decides to
release the legal charge over the property you own this fee is
made.
Legal
charge: This is a legal document that is made that
consists of the detailed records of the correct owner of a
property or a land.
Freehold:
It refers to the ownership of a property and the land.
Mortgage deed: This is a
document that is legally made stating that the creditor or the
lender has the legal charge over your property.
Land
Registration: This is once again a document that is
legally made that consists the records of the ownership of a
property and the land.
Subject to
contract: This refers to an agreement made between
the seller and the buyer even before the actual or legal
contract is made.
Types of Mortgage
There are different types of mortgage. They are explained in
brief as follows
Capped rate mortgage
Cash back mortgage
Fixed rate mortgage
Discount rate mortgage
Capped Rate Mortgage: Capped
rate are offered for periods such as two, three, four or five
years. Here, the interest rate cannot rise above the cap but
instead can vary below the cap. It sometimes is associated with
a collar which imposes a minimum rate.
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