Please select the first letter of the word you need explained

A | B | C | D | E | F | G | H | I | J | L | N | O | P | R | S | T | U | V | W

A

Advance
The amount of money you want to borrow. This is your loan advance.
Agreement in Principle (AIP)
An agreement from your loan provider to lend a certain amount of money. This is dependent on the value of your property, proof of your identity, income, existing credit commitments and credit repayment history.
This is an indicative decision only and is dependent upon your ability to meet our lenders policy. Full details will be provided in your Application Pack. Your Customer Account Manager will ensure everything is made clear.
APR (Annual Percentage Rate)
The total cost of a loan, including interest charges and product fees, shown as a percentage rate. The calculation assumes that you maintain the repayments for the full term. APR is an industry standard calculation and enables direct comparison of loans from all lenders.
Arrangement fee
FONE A LOAN does not charge any up-front fees for arranging your loan. Please check with other loan providers who may charge such fees.
Arrears
The term 'in arrears' is used to describe a loan or mortgage account owed by
the borrower if he/she has failed to keep up the monthly repayments.
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B

Balance Outstanding
The amount of loan owed at a particular time.
Bank of England Base Rate
The Bank of England set an interest rate each month known as the 'Base Rate'. Banks, Building Societies and finance companies use the Base Rate to set the interest rates they pay on deposits, or charge on debts.
Bridging Loan / Bridging Finance
A temporary loan advanced to help you buy a new property before you sell your existing one.
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C

Charge
An interest in the ownership of a property; usually a mortgage or a second loan, which is secured against the property.
Completion (Date of Entry in Scotland)
The date set at which a property purchase process ends - the seller moves out, the buyer moves in and ownership is transferred.
Consent to Mortgage
This document must be signed by everyone who lives at the property who are 17 years or older. They sign to acknowledge the existence of a homeowner loan and the security. They also sign to confirm they are aware that if the loan defaults, the lender has the right to repossess the property.
Conveyancer
A person other than a solicitor who may conduct the conveyancing.
Conveyancing
The process of transferring property from one party to another, usually managed by a solicitor or a licensed conveyancer.
County Court Judgement (CCJ)
A decision reached in the County Court, which can relate to non-payment of debts. If you pay off the debt, the CCJ is satisfied and a note is put on your records to say this.
Covenant
A condition, contained within the Title Deeds or lease that the buyer must comply with. It usually applies to all future owners of the property. A restrictive covenant is one that prohibits the owner from doing something.
Credit Reference Agencies
Organisations licensed under the Consumer Credit Act 1974 to hold information about the credit history of individuals. Lenders refer to these agencies to assist in making decisions about your application.
Credit search
A check the lender makes with a specialist company to find out whether you have any County Court Judgements or a record of not paying loans, credit-card bills etc.
Credit Scoring
The system many Lenders use to help them decide whether they can lend money to you. They'll ask a series of questions about you and your finances and score your answers. Your score will result in you being accepted or declined a loan.
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D

Date of entry
This is the date a specific transaction happens on an account, e.g the day your direct debit is applied; or for Scottish property transactions, the date set when a property purchase process ends - the seller moves out, the buyer moves in and ownership is transferred.
Debt Consolidation
The process of combining outstanding debts e.g. loans, credit cards etc, into one loan. Many customers consolidate their existing debts with a homeowner loan.
Deeds
Legal documents that prove ownership of a property or piece of land.
Deed of Postponement
This is the legal process that gives your mortgage lender a prior claim on your property as security.
Direct Debit
A Direct Debit is an instruction from a customer to their bank or building society to make regular payments direct from their account.
Disbursements
All the various costs for carrying out the legal work in relation to buying or remortgaging your home.
Discharge
Paying off a mortgage.
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E

Early Repayment or Settlement Charge
A charge payable on some loans and mortgages if they are repaid early. The amount depends on the loan outstanding and its terms.
Equity
If your house is worth more than the mortgage on it, the difference is known as the 'equity'. So for example, if your outstanding mortgage is £50,000 and your home is worth £60,000, you have equity of £10,000.
Equity release
Equity release schemes give home owners a way to turn some of the value of their homes into cash. Either a lump sum, regular extra income, or sometimes both.
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F

Freehold
Legal title that gives you absolute ownership of the land your property is on.
Further Advance
An additional loan to your existing secured loan taken after the initial loan has completed. Both loans are secured against the property.
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G

Gazumping
When a seller pulls out of a sale after accepting a higher offer.
Gazundering
A tactic whereby the buyer offers less than the agreed price just before exchange of contracts.
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H

Homeowner
FONE A LOAN considers a homeowner to be a person who owns their home with a mortgage and lives at the property. They are an owner occupier.
Homeowner loan
A homeowner loan is also known as a secured loan.
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I

IFA
Independent Financial Advisor.
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J

Joint Loan Agreement
A loan where there is more than one named individual responsible for the contract.
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L

Land Certificate
A Land Registry certificate proving ownership of a property.
Land Registry
A government organisation that holds records of all registered properties in England and Wales.
Land Registry Fee
A fee paid to the Land Registry to register your details if you have bought a property or changed mortgage lenders.
Loan to Value (LTV)
The amount of mortgage expressed as a percentage of the property value. For example, if your mortgage amount was £80,000 and your property is valued at £100,000 your loan to value, or LTV, is 80%.
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N

Negative Equity
When the value of the mortgage, which is outstanding on the property, is more than the market value of the property.
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O

Ombudsman
An independent professional body which is set up by law to help settle individual disputes between consumers and firms such as estate agents, solicitors and insurance companies.
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P

Planning Permission
The permission granted by the local planning authority (usually the local council) for any new building or engineering operations or change of use of a building if it meets the public's interest.
Premium
The amount you pay regularly, monthly or annually, to an insurer for an insurance policy.
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R

Remortgage
The process of moving your mortgage without moving home. You take a new mortgage with a different lender to pay off your old mortgage.
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S

Secured
A secured loan is underpinned by your property (includes assets such as Title Deeds to your house, life policies, etc). If you don't repay your mortgage or other secured loan, the lender has the right to sell these assets. A secured loan is sometimes also called a homeowner loan.
Solicitor
Legal expert handling all documentation for the sale and purchase of a property.
Stamp Duty
A tax you must pay on a property when you buy it. The duty must be paid at the point of completion.
Subject to Contract
Words to indicate that an agreement is not yet legally binding.
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T

Tenants
People living in a property on a non-ownership basis. loans are not available to tenants.
Term
The period over which the loan is to be repaid. This period will be on the loan offer.
Title
The record of ownership of a property, the evidence of which is found in the title deeds.
Total Amount Payable
The total cost of repaying a loan or mortgage.
Transfer Deeds
The Land Registry document that transfers legal ownership from seller to buyer.
Transfer of Equity
Adding or removing a party to/from a mortgage or other secured loan.
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U

Under Offer
A term applied to a property for which the seller has provisionally accepted the buyer's offer.
Unsecured Loan
A loan provided to a borrower without them having to provide any security such as a charge over their house. Because the risk to the lender of not getting their money back is higher for unsecured loans than for secured loans, the interest rate charged is often higher. Unsecured loans are also sometimes referred to as personal loans.
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V

Valuation
In most instances this is the figure that a surveyor will come to regarding the price of a property. This is done to ensure that the property is worth the amount requested for a mortgage
Valuation Fee
The charge for the valuation of the property.
Variable Interest Rate
Rate of interest payment that fluctuates over time with general interest rates.
Vendor
The seller of a property or piece of land.
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W

Writeback arrears
The agreed re-structure of a customer's account where contractual payments have not been maintained.