Mortgage Glossary
There is a lot of ‘jargon’ used in the mortgage industry.
We have tried to provide you with a comprehensive explanation of all the terminology that you may come across during the mortgage process
Level Term Assurance
This is a life assurance policy which will repay your mortgage should you die during the term of the loan. The amount repaid is set as the balance of your mortgage at the start of your loan; this doesn’t change during the term of the mortgage. It is very important to understand the concept that if you are to live until the end of the term, your policy will expire and no payment will be made.
Legal Fees
These are the fees charged by a solicitor or other qualified individual to carry out the legal work associated with buying a property.
Leasehold
This is a system used mainly in England where you own the property for a set period before handing back ownership to the freeholder. When you hold a lease on a property, it remains the property of the freeholder.
A leasehold will set out the details of leaseholder obligations regarding repairs and maintenance of the property.