debt consolidation
- replacing a number of existing loans with a single loan from a new
lender.
This can result in a reduction in your monthly payments by spreading
the larger loan over a longer period and possibly, by reducing the
overall interest rate. The borrower should realise that they could
end up paying more overall at the end of the term.
deducted from loan
- expression used by lenders to refer to certain fees, such as the
arrangement fee, that will be deducted from the amount borrowed
on completion. It effectively means that you have paid the fee,
as opposed to adding it to the loan.
deeds release fee
- fee charged by a lender for releasing the deeds of the mortgaged
property and returning them to the owner or his solicitor, usually
when the mortgage has been repaid.
deferred interest
- an old type of loan whereby some or all of the interest owed by
the borrower is not collected immediately but is added to the amount
outstanding. As a result the borrower may end up owing considerably
more than originally borrowed.
deposit
- money paid upon exchange of contracts.
Also, the borrowers equity in a property may be referred to as
the deposit.
despatch fee
- see deeds release fee.
direct product
- mortgage product available to borrowers through direct application
to the lender, and NOT available through intermediaries.
disbursements (conveyancing)
- costs incurred by solicitors in carrying out their work which
they will re-charge to their clients, e.g. photocopying, postage,
couriers.
discharge fee
-fee charged by a lender releasing its charge over a property following
the - see redemption of a mortgage.
discharged bankrupt
- person whose period of bankruptcy has ended.
discharged CCJ
- county court judgement which has been paid.
discount purchase price
- price of a property that has been reduced below the open-market
value, such as in the case of a right-to-buy
purchase or a builder's discount.
Under right to buy legislation, properties are not offered at the
open market value, but at a discount. If the
property is resold within a three-year period, some or all of the
discount will have to be repaid.
discount rate
- the mortgage interest rate is lower than the current normal standard
variable rate for a certain period, usually shown as a fixed percentage
reduction to the lender's normal variable rate eg. 2.00% discount
for 2 years.
disc
- an abbreviation for discount.
draw down facility
- an additional borrowing opportunity that is agreed with a lender
but the amount of which has not yet been lent to the borrower.
These may be used either to guarantee the availability of future
money for a specific purpose (e.g. home improvements) or simply
to give the borrower access to further funds without the need for
additional checks on their ability to make the payments.
