Mortgage Information
The Mortgage Info listed below standard mortgage terms and info that can be used as a point of reference when reading the mortgage info on this web site
Minimum & Maximum borrowing
Minimum and maximum borrowing – some providers will only lend certain amounts.
Loan to Value
Loan to value – This is the ratio between size of loan and value of property. So, for example if you require a £90,000 mortgage on a property valued at £100,000 the loan-to-value you require is 90%. Some lenders have specific limits on these.
Higher Lending Charge
High Lending charges HLC- This is a fee that is used to buy insurance to protect the mortgage lender if you borrow more than a given amount. Many mortgage lenders will lend you up to, say, 90% of the value of a property without this fee. But if you want to borrow more, the lender usually requires you to pay for insurance to ensure that it will recover all its money if the property has to be sold for less than the amount of the mortgage. It must be noted that the insurance company will take recourse against the home owner even though the provider is compensated for the shortfall.
Your home may be repossessed if you do not keep up repayments on your mortgage
Rate of Interest
Rate – it is worthwhile shopping around to ensure you are getting a good rate to prevent paying over the odds for your mortgage.
