- amount charged by a lender, broker or other intermediary for arranging
a mortgage or property purchase. See sub menu.
- equivalent of a freehold under Scottish law.
- normal legal charge used to secure the main mortgage. A lender
with a first legal charge over a property has a first call on any
funds available from the sale of the property. See also: second
first time buyer
- person wishing to purchase a property for the first time. Some
lenders offer preferential lending terms to first time buyers. A
borrower who has owned a property before but has sold this prior
to buying again may be offered first time buyer terms by some lenders.
However, this will vary on a lender to lender basis.
- a loan where the initial payments are based on a certain interest
rate for a stated period and the rate payable will not change during
that period regardless of changes in the lender's standard variable
flat over shop
- residential dwelling situated above retail premises. Lenders are
likely to take a similar approach to flats above any form of commercial
premises. Some lenders will not lend on this type of security as
it is seen as having limited appeal to prospective purchasers and
may therefore have a lower value compared to an otherwise similar
property in a wholly residential block. Any property that is located
above commercial property is found generally to take longer to resell
than properties which do not have any commercial element. A flat
above a take-away restaurant is going to be more difficult to arrange
a loan on than a flat above a book shop.
- an abbreviation for flexible. Flexible mortgages are offered by
some lenders. A flexible mortgage allows you to make overpayments
in order to repay the mortgage early or save for a special event.
freehold - land or property which is owned outright, as opposed to leasehold
where the owner has the right to occupy the land or property for
a given period of years only. See also: feuhold.
- a flat which has the freehold of the land on which it is built.
Such properties are notoriously difficult to get a mortgage on because,
if they do not benefit from some sort of legal contract from the
owner of any supporting or adjacent property, major difficulties
can be experienced in the event of anything affecting them structurally
(e.g. subsidence.) This should not be confused with a situation
when one or more leaseholders in a block of flats acquires the freehold
interest in the property and it is sold with the benefit of a share
in the freehold. In this situation the individual leases on the
flats should still be left in place in order to provide the necessary
legal agreements, however the leaseholders may grant themselves
extensions on the lease as they wish.
- FTB see First Time Buyer
- a loan where complete checks are made on the borrower's credit
history and income.