A mortgage loan.
The term used to apply to a borrower or application that has past problems with credit, for instance late payment, bankruptcy or County Court Judgements.
The agreement in principle gives an indication to you of the likely outcome of a loan application. It is not a formal offer, but includes a credit check with a credit reference agency and an assessment of your ability to repay the loan amount requested. This is sometimes referred to as a 'Decision in Principle'.
The true cost of borrowing shown as a percentage rate, allowing comparison between offers from different lenders. The APR takes into consideration all payments, such as interest payments, repayments of capital, all costs and any fees based on projections for the payments applicable during the term of a mortgage.
The increase in the value of a property as a result of changes in market conditions.
The fee payable to the lender for arranging the mortgage.
Term used on the account when the monthly mortgage payments have fallen behind schedule.
Any form of property owned by a person, including currency, stocks, and enforceable claims against others.
The transfer of a right, interest or title to property.
The amount of loan owed at a particular time.
The Bank of England set a rate each month known as the 'Base Rate'. Banks and Building Societies use the Base Rate to set their interest rates.
A basic property survey for mortgage purposes. This is less comprehensive than both a Homebuyers Report and a Full Structural Survey.
A temporary loan advanced to help somebody buy a new property before they have sold their existing one.
Insurance to cover the cost of rebuilding a property from scratch following structural damage, for example by flood, fire or storm.
A mutual institution owned by its investors and borrowers that provides a range of savings and mortgages.
Our Buy to Let Managed Rate is set at the sole discretion of the Society and is set independently from Bank Base Rate. The setting of these rates reflects the costs of funds that we raise from our savings customer base and rates of interest in the wholesale money markets.
A mortgage used to buy property which is to be used solely for the purposes of renting out to a third party.
A lump sum payment to reduce the loan outstanding.
A lump sum or a percentage of your mortgage paid in cash when the mortgage completes.
Also known as a Repayment Mortgage. The monthly payments pay off both the interest and capital borrowed. If all payments are made on time the mortgage will be fully repaid at the end of the term.
An interest in the ownership of a property; usually a mortgage or some other debt secured against the property.
The date that you become the legal owner of your new property.
Insurance to cover accidental damage or theft of household contents.
A document that describes the agreement under which the property will change hands.
A person other than a solicitor who may conduct the conveyancing.
The process of transferring property from one party to another, usually managed by a solicitor or a licensed conveyancer.
An order given by the County Court registering the details of an outstanding debt.
A condition, attached to the property and contained within the Title Deeds or lease, that the buyer must comply with. This can either be positive or restrictive. A positive covenant is a clause in a loan agreement which requires a specified action by the borrower. A restrictive covenant is one that prohibits the owner from doing something.
A report containing detailed information on a persons' credit history, including identifying information, credit accounts and loans, bankruptcies and late payments and recent inquiries. It can be obtained by prospective lenders, with the borrowers pemission, to determine his or her credit worthiness.
A system used by Lenders to help them decide whether to lend to you. They ask a series of questions about you and your finances and score your answers. Depending on your score you will be accepted or declined.
The process of combining outstanding debts e.g. loans, credit card borrowing etc, into one loan.
The decision in principle gives an indication to you of the likely outcome of a loan application. It is not a formal offer, but includes a credit check with a credit reference agency and an assessment of your ability to repay the loan amount requested. This is sometimes referred to as an 'Agreement in Principle'.
Assurance cover designed to protect a repayment (capital and interest) mortgage. In the event of death during the term of the policy, a cash lump sum is payable to help pay off the outstanding balance of your mortgage. As the mortgage amount decreases, so does the value of any cash sum that would be payable on death.
Legal documents that show who owns a property or piece of land.
Sum of money which the buyer forwards to the seller’s solicitors at exchange of contracts, usually 5 to 10 per cent of the purchase price.
All the various costs for carrying out the legal work in relation to buying or remortgaging a home.
Release of the charge held by the mortgage lender.
A mortgage where the interest rate is discounted from the lender's published Standard Variable Rate for an agreed period, often the first two or three years.
A charge payable on some mortgages if they are repaid early (during an Early Repayment Charge period). The amount depends on the mortgage outstanding and the terms of the mortgage product.
A legal right over land, for example the right to access a specified area of land, such as a right of way.
The difference between the value of a property and the amount of mortgage and/or secured loans owed.
The point at which signed copies of the contract for the sale of the property are exchanged by the legal representatives of both parties and become legally binding. The buyer usually pays a deposit at this point and the date of completion is agreed.
It regulates financial firms providing services to consumers and maintains the integrity of the UK's financial markets.
An independent professional body set up by law to help settle individual disputes between consumers and firms.
A mortgage where the interest rate is fixed for a specific time.
All non-structural items included in the purchase of a property.
A mortgage product enabling the borrower to tailor repayments to suit their particular financial circumstances. This can be used when earnings are subject to seasonal fluctuations or contractural bonuses.
Legal title that gives you absolute ownership of the land your property is on.
A type of property survey looking at the main features of the property. More comprehensive than both a Basic Valuation and a Homebuyers Report.
An additional loan to your existing mortgage which is also secured against the property.
When a seller pulls out of a sale after accepting a higher offer.
A tactic whereby the buyer offers less than the agreed price just before exchange of contracts.
The annual fee which a leaseholder pays to a freeholder.
A guarantor is someone who guarantees to pay an outstanding amount on default of the mortgage up to the limit of the guarantee.
A charge (that may be added to the loan) when borrowing more than a certain percentage of the valuation or purchase price of the property (e.g. 80%).
A type of property survey that is more comprehensive than a mortgage valuation but less extensive than a full structural survey.
A report on detailed flood, subsidence and land contamination history for each UK neighbourhood.
A set of documents providing information about a property (eg. an Energy Performance Certificate) for the buyer. The pack is prepared and paid for by the seller.
A house which is occupied by persons who do not form a single household.
An insurance policy that protects against loss or damage to the property caused by fire, some natural causes and acts of vandalism.
Independent Financial Advisor.
Issued by lenders and intermediaries to inform of the scope and nature of the services offered. The standardisation of the document allows the comparison of the services of other lenders and intermediaries.
The formula used by lenders to calculate how much a prospective borrower can borrow, in relation to household income.
Only the interest on the mortgage debt is paid each month. The outstanding balance remains the same throughout the term. A separate Investment Vehicle is required, which is designed to grow sufficiently to pay off the loan when the mortgage period expires.
An investment designed to grow sufficiently to pay off an interest only loan when the mortgage period expires.
The total gross income of the two borrowers in a joint mortgage.
A mortgage where there is more than one named individual responsible for the contract.
A form of ownership frequently used by couples which ensures that when one dies, the property passes automatically to the other. The alternative is Tenancy in Common.
A document which contains key mortgage information and is designed to help you to easily compare the costs and features of different mortgages from different lenders.
A Land Registry certificate proving ownership of a property.
A government organisation that holds records of all registered properties in England and Wales.
A fee paid to the Land Registry to register your details if you have bought a property or changed mortgage lenders.
A reference given by a previous landlord, which confirms an applicant's history of payment of rent and previous conduct as a tenant.
Legal title giving ownership of a property but not the land it is built on. This normally requires payment of ground rent to the landlord.
Assurance cover usually used to protect an interest only mortgage. In the event of death during the term of the mortgage, a guaranteed lump sum is payable to pay off the balance of the mortgage.
An insurance which pays out on the death of the policy holder.
A Local Government document detailing anything that may impact on the property or surrounding area, e.g. planned road building, planning permissions etc
The amount of mortgage expressed as a percentage of the property value. For example, if the mortgage amount was £80,000 and the property is valued at £100,000, the loan to value (or LTV) is 80%.
This was a government scheme discontinued in April 2001 that allowed you to claim tax relief on the interest you paid on your mortgage.
A loan using the property as security.
A legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to possess it.
A formal offer from the mortgage lender advising that they will provide the finance to enable you to purchase a property.
An insurance designed to pay your monthly mortgage payment for a limited period (usually a year) if you are unable to work through illness, accident or redundancy.
The length of time over which the mortgage is to be repaid.
When the amount of the mortgage loan outstanding on the property is more than the market value of the property.
National House Building Council. An organisation controlling a warranty scheme for new properties providing cover against major structural defects for 10 years from the initial build of the property.
Once a mortgage application has been assessed, the lender will give you an offer of advance which will show how much they are prepared to lend and on what terms.
With an offset mortgage, you can use the money in a Manchester Building Society offset savings account(s) to help reduce the interest charged on your mortgage. A maximum of 50% of your outstanding mortgage balance can be offset.
An independent professional body set up by law to help settle individual disputes between consumers and firms.
Our Offset Managed Rate (OMR) is set at the sole discretion of the Society and is set independently from Bank Base Rate. The setting of these rates reflects the costs of funds that we raise from our savings customer base and rates of interest in the wholesale money markets.
An originator is any party who 'originates' a Direct Debit, i.e. the Direct Debit comes from that party. For example, if you pay your Council Tax by Direct Debit, your Council would be the originator of the Direct Debit.
When repayments to the mortgage are greater than required. Some mortgages (flexible mortgages) allow for overpayment, but others may impose charges for overpayment.
A period of time (agreed by the mortgage lender) when you can take a break from making repayments to your mortgage.
Term used for when the expected monthly mortgage payment has not been made in the month due.
The permission granted by the local planning authority (usually the local council) for any new building, operations, change of use etc.
Where the mortgage lender allows the mortgage terms to be transferred betweeen properties when the borrower moves home.
The amount you pay regularly, monthly or annually, to an insurer for an insurance policy.
Sale of a property without the use of an estate agent.
Carries out the prudential regulation of financial firms, including banks, investment banks, building societies and insurance companies.
A fee levied if the lender needs to re-inspect the property, usually to check if agreed repairs have been made.
Replacing a mortgage with a different product, for example to obtain a better interest rate or release further funds.
Also known as a Capital and Interest mortgage. The monthly payments pay off both the interest and capital borrowed. If all payments are made on time the mortgage will be fully repaid at the end of the term.
The manner in which you pay back your mortgage (see Repayment Mortgage/Capital & Interest Mortgage or Interest Only Mortgage).
A Government scheme for qualifying public sector tenants to buy their home at a discounted price.
Where the borrower states their income with little or no supporting evidence provided.
Where a single estate agent acts on the seller's behalf.
Legal expert handling all documentation for the sale and purchase of a property.
Our Standard Variable Rate (SVR) is set at the sole discretion of the Society and is set independently from Bank Base Rate. The setting of these rates reflects the costs of funds that we raise from our savings customer base and rates of interest in the wholesale money markets.
A tax payable when the property being purchased exceeds a specified amount. Once the threshold is reached the tax is payable on the whole purchase price, with the rate payable increasing with the house value.
A building that has been constructed using conventional techniques and materials, for instance bricks and stone with a tiled or slate roof.
The standard interest rate offered by financial institutions. The SVR will differ between lenders.
An agreement that is not yet legally binding as it is subject to terms and conditions.
A report on the property you are planning to buy – see Basic Valuation, Homebuyers Report and Full Structural Survey.
A person who conducts a survey of property.
A form of ownership by two or more people in which, if one dies, their share of the property forms part of their estate and does not automatically pass to the other(s). The alternative is Joint Tenants.
Occupancy of land or a house, or the like, under a lease or on payment of rent.
The period of time between the start and finish of the mortgage loan.
The record of ownership of a property, the evidence of which is found in the Title Deeds, or Land Registration Certificate.
The total cost of repaying a mortgage, including interest and charges etc.
A mortgage where the interest rate is set at a constant level above or below the Bank of England base rate, rising and falling in line with any changes during the tracking period. If the base rate falls, the repayments fall but if the base rate goes up, so will the repayments.
The Land Registry document that transfers legal ownership from seller to buyer.
Adding or removing a party to/from a mortgage.
A property that has no loans or borrowings secured on it.
A term applied to a property for which the seller has provisionally accepted the buyer's offer.
A valuation of the property for mortgage purposes to ensure that the property is worth the amount requested for a mortgage.
The charge levied for the valuation to be carried out.
Rate of interest that fluctuates over time with general interest rates.
The seller of a property or piece of land.