# Mortgage Loans uk

United Kingdom Mortgage LoansThere is no repayment of principal, so that at the end of the term the full amount of the loan is still outstanding. sspan class="mw-headline" id="Introduction">Einführung[edit] The site contains a description of British mortgage terms that can often be confusing toorrowers. One of the most inventive and highly competetive mortgage markets in the UK. However, this at least provisionally altered after the nationalization of Northern Rock (one of the biggest mortgage lenders in the country) in 2008.

As a result, a large number of mortgage categories have emerged: Redemption mortgage - in theory, and other things are the same, each borrower is given a lump sum each months to cover the interest due for that particular monthly period on the principal plus a partial redemption of the principal.

This lump sum is determined in such a way that the entire amount of the credit is paid off by the end of its period. Interest only mortgage - whereby the payment to the creditor only covers the interest. There is no repayment of principal, so that at the end of the period the full amount of the credit is still due.

If, for example, the amount of the credit is 90,000 and the interest payable (calculated monthly) is 5.6% per annum, the interest payable is (90000*5.6%)/12}=£420. Life mortgage - a pure interest mortgage in which the principal from the due value of one or more life insurance policy (s) is to be paid back at the end of the life of the policy.

A mortgage covered by an investor's contribution - a pure interest mortgage in which the principal is to be paid back at the end of the life from the income of an ISA or another type of investments at the end of the life. These are sometimes called ISA mortgage loans. An annuity mortgage in which the tax-free flat -rate payment from a private occupational benefits institution (or, in general, part of the residual value after the amendment to the German Act on Annuities scheduled for April 2015) is used to pay back a pure annuity mortgage in the event of retired employees.

Floating interest rates - the interest rates vary at the creditor's judgment. Stand-Alone Floating Interest Rates - The stand-Alone Floating Interest Rates that the creditor will offer to mortgage debtors with a Stand-Alone construction financing. The tracker interest is a floating interest that corresponds to a public interest payment (typically LIBOR, plus a floating spread).

5%, i.e. if the LIBOR at any point in history is 4% per annum, the interest rates for the borrowers are 5. Diskontsatz - with lower interest rates (e.g. 2% per year lower) for a brief firm interval (typically 1 to 5 years), after which the full interest is calculated.

Occasionally the ratio is graded (e.g. 3% in year 1, 2% in year 2, 1% in year 3). A capped interest quote - a floating interest quote, but there is also a warranty that the interest quote will not exceed a certain limit. To ensure this, the creditor would probably have to buy a derivatives deal to hedge against interest increases above the ceiling and would have to transfer the associated costs to the debtor.

Occasionally there is also a collars, i.e. a specified minimal and maximal number. Mortgage Buy to Let - a type of corporate mortgage that is used to buy home with the intent of renting it to paid renters. The right to buy a mortgage - a mortgage established in the context of the law on the "right to buy your home" for renters of town halls or building societies.

Mortgage flexibility - a mortgage that allows extra principal to be paid without penalties and often allows vacation or underpayment. Unwanted Loan Mortgage - Loans for borrower with loan difficulties, e.g. judgments of the Regional Courts. A mortgage where taking out a loan does not depend on the claimant's and the claimant's income to be able to make the repayment.

Mortgage - a mortgage where the debtor can lower the interest rate by setting off a sum against the mortgage overdraft. Foreigncurrency mortgage - when the liability is denominated in a single entity (typically one in which interest is lower ) to cut principal and interest outlay.

Prepayment fee, reimbursement fee or commitment - The creditor may face many types of upfront charges (e.g. real estate appraisal charges if not specifically invoiced; or lower interest rates in the first years of the mortgage; or - last but not least - the payment of agents or distribution teams).

They would try to offset these expenses through higher interest rate over the rest of the mortgage life. In the past, these sanctions were termed repayments or tying sanctions, but since the beginning of the Financial Services Authority's regulatory process they have been termed prepayment sanctions. Evaluation commission that is paid by a certified expert to inspect the real estate and ensures that it is sufficient to pay the mortgage amount.

High Credit Levy (HLC) - a levy imposed by creditors on mortgage loans that exceed a predefined LTV percent mark. Up to the 90s these were typical of all LTV over 75% LTVs, but the general trend at that point was for the mortgage markets to reach a 90% level. As a result, some creditors have shifted away from levying an express LLC in favor of levying a higher interest for higher LTVs.

Processing Charge - Either a percent of the principal amount of the principal amount or a fixed charge levied by the mortgage provider or broker to prepare and secure a mortgage. Debt Mortgage - all new loans granted in a given term, as well as re-mortgaging and new home loans. Overdue mortgage balance - the aggregate amount of overdue mortgage balance at a given point in foray.

Mortgage net loans - the overall variation in balance due between two dates, can also be worked out by summing the overall amount of credit in a given horizon minus principal payments, principal payments and credit loss in the same horizon. Payback - Early payback of a mortgage as compared to early payback of a mortgage according to a fixed schedule, usually when repaying to another mortgage lender or by another flat -rate method (e.g. when you sell the property).

re-mortgaging - re-financing a mortgage, which usually means switching from one vendor to another.