This is known as a loan secured on land or a property. To be more precise, it isactual legal deed setting out the lending terms. A lender can force the sale if the loan conditions are breached.

Mortgagee

The lender, who takes out the legal charge on the property and deemed to have the first charge; in some cases a second cherge or third charge could be made on the property.

Mortgagor

The Borrower.

Mortage Payment Protection Insurance

This is an insurance plan that covers your mortgage repayment for approximately up to 12 months if you are unable to work due to sickness, accident and unemployment. This plan is normally arranged by he borrower if you request it.

Offset Mortgage

With this type of Mortgage you pool your savings and Mortgage withe your lender and your savings are then offset against the Mortgage Capital. Every £1 in your savings account means £1 less debt you pay interest on. If your mortgage is £300, 000.00 in a savings account with your lender, you will pay interest on £250,000.00 but you have £50,000.00 in your savings account with your lender, you will pay interest on £250,000.00. This results in a reduction in interest you have to pay each month.

Penalty for Early Redemption

This is a charge to customers who move or pay off their mortgage early during a fixed discounted rate period. Where early repayment charge is applied after the fixed or discounted period ends, this is known as an extended tie-in period.

Right to Buy

Council Right to Buy Schemes gives the oppertunity to those renting from the council for a certain specifed time, to buy their home at a reduced rate.

Redemption Penalty

This is a charge to customers who move or pay off their mortgage early, during fixed discounted rate period. An eraly repayment charge can also be applied after the fixed or discounted ends, this is known as an exteened tie-in period.

Re-mortgage

This is arranging a new loan on an already mortgaged property with a new lender. This loan is used to pay-off the first lender and sometimes is used to undertake home improvements or settle other debts.