How to understand the conditions of the mortgage UK
How to understand the conditions of the mortgage UK - Getting the best mortgage deals can be difficult. There are so many different options, terms and conditions associated with the mortgage deal. Here is an explanation of some terms on mortgage loans in the UK.
Understand the following terms:
Tracker floating rate: rate mortgage rate is set at a fixed percentage above the Bank of England (BOE) base rate. Interest rate payable will rise and fall in line with changes to the base rate of the Bank of England.
Interest Rate: This is the interest rate at which the lender calculates the interest that they charge the borrower for the mortgage.
Base rate: official interest rate set by the Bank of England. This varies greatly and affects how much interest you will pay every year.
Fixed rate mortgage: fixed interest rate is added to the mortgage loan for a certain amount of time during which your monthly payments will remain the same.
Mortgage repayment: Your monthly payment includes interest and return of capital. As long as you follow all the required payments on the mortgage lender will gradually decrease until it is repaid in full at the end of the property.
Fee Rating: typically charged by the lender to conduct checks on the property you wish to buy. Evaluation report only to the lender and is used to assess the feasibility of a mortgage.
This lump sum payment: a lump sum payment is a lump sum payment for the full or partial cost of the property. This is typically done to reduce the amount of time they have to pay the mortgage.
New build property: New Build Property UK is defined as:
property that has been built in the last 24 months, which includes property purchased directly from a builder or developer
a property which until now not occupied for the first time
AND / OR - a property that has not yet been held in its current form, for example, after the upgrade or conversion.
Remortgage: Remortgage is when a person transfers their mortgage from another lender. There are several reasons why people may do this:
Usually it around looking for the best or the best mortgage deals
Or changes in circumstances compared with when the mortgage was taken out.
These are just some of the mortgage terms that will be thrown at you by your mortgage lender and the people working with them.
It is best to get used to them quickly, as you do not want to be confused when it comes to making that all important decision on” What type of mortgage is right for you.”
It can be the difference between what is right or wrong for you, and getting a mortgage in difficult times.
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