| Advance | The mortgage funds sent by the lender. |
| Arrangement fee | A fee payable to a lender/broker for setting up a mortgage. It can sometimes be added to the mortgage debt. |
| Bankruptcy search | A search made to check whether a Buyer or Borrower has been, is, or is about to be, declared bankrupt. |
| Borrower | The person taking out a loan or mortgage on a property, sometimes also known as the mortgagor. |
| Bridging Loan | A bank loan to enable a property to be purchased before another property is sold, and then repaid out of the proceeds of sale. A substantially higher interest rate than that of ordinary loans is normally charged. It is called a bridging loan because it “bridges” the gap between buying one property and receiving the proceeds of sale of the other property (or the receipt of a mortgage). |
| Charge | Another term for a mortgage over the property. |
| Consent to mortgage form by Occupier | This is a form used when a Buyer is buying a property in his/her own name but where, on completion, there will be a non-owning occupier also living at the property. It is only required where the Buyer is having a mortgage. The effect of the form is that the occupier is agreeing and accepting that, if the Buyer breaches the terms of the mortgage and, as a result, is evicted from the property by the lender, then the occupier also must leave the property. Separate legal advice by an independent lawyer who is not acting for either the Buyer or the Seller is advisable. |
| Lender | Any person, including a bank or building society, who is lending money to you, sometimes also known as the mortgagee. |
| Mortgage Indemnity Guarantee (MIG) |
In high percentage mortgages this may be required to guarantee repayment to the Lender (see Mortgages page). |
| Mortgage Deed | This is the document the Borrower signs to agree to the terms set out in the Mortgage Offer. This document is sent to the Land Registry, which registers the mortgage as a financial charge on the property, which is then shown in the charges register for the property. |
| Mortgage Offer | A written offer to lend money on a property. The mortgage offer will contain all the terms of the loan and the conditions upon which the money is loaned. |
| Mortgage valuation | The Borrower generally pays a fee to the Lender to have the property valued for mortgage purposes. This enables the Lender to decide whether the property is worth enough to lend what the Borrower is asking for and whether it is suitable security for the mortgage. The mortgage valuer will not necessarily inspect the physical condition of the property. |
| Redeeming your mortgage | When a property owner pays back the mortgage on the property it is called redeeming the mortgage. You will first need to get a statement of what is owed, which is called a redemption statement. If you are paying the loan back early you may be charged an early repayment penalty. |
| Redemption figure | The amount needed to repay a mortgage, including redemption fees and any early repayment penalty. |
