Friendly, impartial mortgage advisors
01462 451029 mark@newmanknight.co.uk

Knowledge Base

Discover more about Mortgages & Protection so that your next decision is well-informed.

Agreement in principle

This is good news – it means that your application for a mortgage (or any kind of financial service) has been agreed in principle, subject to such things as the valuation of your property or confirmation of your income.

Arrangement fee

Another fairly self-explanatory term – it’s what you may be charged by the lender for arranging the mortgage. Generally, you’ll need to pay this fee on completion of the purchase, but sometimes the amount can be added to the loan itself.

Bank rate

This is the basic rate of interest determined by the Bank of England

Completion

The moment you’ve been waiting for! All the legal necessities have been completed and your lender actually advances the funds for the purchase – the funds usually being deposited into an account held by your solicitor

Completion date

Another critical milestone in your calendar – completion of the sale of the property to you, when the keys are handed over

Conveyancing fee

This is what you have to pay a solicitor (or a licensed conveyancer) for doing all the legal work for registering the property in your name. The final bill for this service should also include stamp duty, land registry fees and his or her disbursements.

Land registry fees

If you take out a mortgage or change an existing one on a property, this needs to be registered with the Land Registry, who will make a charge for amending the records

Loan to value ratio

This is a simple ratio or percentage that expresses the proportion of a loan to the value of the property. In other words, if you’re looking to borrow £150,000 on a property valued at £300,000 you’d need to secure a 50% loan to value rate.

Negative equity

Is something you clearly want to avoid, since it arises when the extent of your borrowing is greater than the current market value of the property

Procuration fee

The fee that a Mortgage Lender will pay to an introducer for introducing the business to that lender

Redemption charges

These days, the term is better and more clearly known as Early Repayment Charges – the penalty you’ll incur if you wish to repay your mortgage before the end of its full term

Search fee

It will be important to make sure that there are no plans in the neighbourhood that might affect the future value of your home. For this, you need to ask the local authority to do a search for you and, of course, there is a charge.

Stamp Duty

This is a tax that is paid when buying property or land. It’s applied on a sliding scale. Please note: Stamp duty brackets change from time to time so be sure to check the Governement website for the latest figures. https://www.gov.uk/stamp-duty-land-tax

Mortgage Deed

The mortgage deed is the written legal agreement between you and your lender.

Newman Knight & Co is an appointed representative of JLM Mortgage Services Ltd which is authorised and regulated by the Financial Conduct Authority (FCA) Registration Number 300629 .

The FCA do not regulate some forms of mortgages. The guidance and / or advice contained within this website is subject to the UK regulatory regime and is therefore primary targeted at consumers based in the UK. JLM Mortgages Services  Ltd registered in England No 4701803.

YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

© Newman Knight & Co. 2024
Website lovingly crafted by You I