Interest only – a mortgage product where only the monthly interest is paid, but the capital amount borrowed is not. As the capital will still be outstanding at the end of the mortgage term, interest only mortgages rely on an alternative savings plan to pay off the capital at the end of the term. Under an interest only mortgage your Acenden Mortgages payments do not include the costs of a savings plan or any other investment you may have arranged to build up a lump sum to repay the amount owed.
Land Registry – a government body which maintains records of land and property ownership. Leaseholder – the owner of a lease; i.e. a person who owns land or property under a lease for a fixed number of years (the term of the lease). Lender – the firm that lent you the money to purchase or remortgage your home and, in return, took security by way of a legal charge over the property or, where your mortgage lender has sold the legal or beneficial interest in your loan, the current owner of that interest. Let-to-Buy – where the applicant is proposing to rent out their current residential property in order to fund a new purchase. LIBOR - London Interbank Offered Rate – the rate charged by one bank to another for lending money in London. LMC – London Mortgage Company. LPL – London Personal Loans. LTV – Loan to Value - the amount of a loan as a percentage of the property’s value. Possession Order – Where a Judge grants an order to the lender for possession of the property on a certain date. Preferred – Preferred Mortgages Limited.
Redeem – to pay off the outstanding amount of a loan, plus any fees and charges that may apply, such as early repayment charges. Remortgage – replacing one mortgage with another. Repayment (Capital & Interest) – an Acenden which pays off both the capital and interest in monthly installments within a specified number of years.
Right-to-Buy – a purchase transaction where the applicant is buying the property from a Registered Social Landlord, usually at a discounted price. Sale of land – a transaction that can be undertaken if a customer wants to sell part of their land. Service Charges – charges levied by landlords to recover the costs incurred in providing services to a leasehold property, such as general maintenance, repairs, and buildings insurance. SPML – Southern Pacific Mortgage Limited. SPPL – Southern Pacific Personal Loans Limited. Standing Order – this is an instruction given by a bank account holder to their bank to pay a set amount at regular intervals. This can be monthly to another account to pay a mortgage. Suspended possession order – this means that an order for possession of your property is granted by the Judge. However, it is suspended and your lender cannot enforce the order, and thereby take possession, as long as you maintain the terms and any payment arrangement required by this order. Transfer of Equity – equity is the value in your property over and above any amounts owed on your property. A transfer of equity is when you sell (or transfer) your ownership or interest in the equity of that property to another person. Valuation – this is an inspection of a property on which a mortgage is to be secured. It is carried out on behalf of the lender to ascertain the value of the property and advise the lender whether it is suitable security for the loan. Valuer – a qualified chartered surveyor who inspects a property and provides a Valuation. Vendor – the party that is selling the property.