Mortgage Glossary Index

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Maintenance charge
The cost of maintaining and repairing communal parts of a building.

Maintenance fee
The monthly assessment members of a homeowners association pay for the repair and maintenance of common areas.

Major defects
Particular features that may affect either the present value, or the ability to resell the property at a later date. It will be up to the surveyor to judge what the urgent and significant matters are that could affect the market value of the property. Identified in homebuyers report/ full survey.

Mandatory products
These are supplementary products that some businesses insist you purchase along with the core thing that you are buying. This is often buildings insurance, income protection products or something else that is sometimes sold in conjunction with a mortgage.

Margin
The lender's "retail markup" on the mortgage. For example, if the index rate for an adjustable rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent.

Market conditions
Factors affecting the sale and purchase of homes at a particular point in time.

Market value
The price that a piece of property sells for at a particular point in time.

MIG - Mortgage Indemnity Guarantee
This is insurance for the lender paid by the consumer in a one-off payment, on 'high' LTV mortgages. This protects the lender in the event that you default on the loan and the sale of the property is not enough to repay the amount that they are owed. Some lenders will insist you pay this if your mortgage is for as low as 75% of the value of the property, but 90% is a more common level. Some lenders will not insist on it regardless of the loan value. You can often add this fee to the loan, but be aware that you will then be paying interest on it until the loan is repaid in full.

Modification
A change in any of the terms of the loan agreement.

Monthly fee
A fee charged once a month.

Monthly repayment
This is the amount you pay to your lender each month towards the cost of your loan.

Mortgage
The name given to a loan used to buy a property.

Mortgage acceleration clause
A clause which allows a lender to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or the borrower defaults on a scheduled payment.

Mortgage advance
The money loaned to the buyer, by the lender.

Mortgage application
Forms used to assess whether you meet the lender's underwriting criteria. These criteria are set to ensure that barring any unforeseeable change in circumstances, you will be able to support the mortgage and meet the repayments. Questions relate to such things as income & status, equity, personal details, credit history etc.

Mortgage application fee
A charge purely for applying for a mortgage. Paid to the lender upfront at the time of application it is usually between £100 and £300.This type of fee is becoming less common than an arrangement fee. As with arrangement fees, this type of mortgage fee is usually found with the special deals from lenders possibly to restrict the number of applicants by only attracting serious buyers. Some of the time this fee is refunded on completion of the mortgage.

Mortgage arrears
The amount of back pay you owe your mortgage lender for failing to meet your mortgage requirements.

Mortgage broker
An independent agent who shops around for the best mortgage deal on behalf of his clients.

Mortgage cash deficit
Money still owed and the end of the repayment period of an interest only mortgage.

Mortgage cash surplus
Money left over at the end of a mortgage term, over and above the amount required to pay back the debt.

Mortgage certificate
The first document provided by an mortgage lender which shows any prospective seller that you can actually get a mortgage to cover the purchase price. It also provides a handy reference for some of the key features of your mortgage, and what your repayments will be for the introductory offer period, if there is one.

Mortgage code
The mortgage code is a set of standards defined by the Council of Mortgage Lenders, that lenders voluntarily subscribe to. It sets out codes of conduct on how a lender or intermediary should act when arranging your mortgage, as well as how you should be dealt with once your mortgage is in place. It also tells you how to complain in the event of a lender not keeping to the code and who to complain to.

Mortgage code arbitration scheme
An arbitration service between members of the public and lenders. 

Mortgage confirmation
When you get a written confirmation of your offer, you usually receive two things. Firstly, there will usually be some form of standard covering letter, thanking you for your hugely valued business and welcoming you into a family of customers that have their mortgage lender in common. In addition to the letter, you will receive a written mortgage confirmation. This will normally set out some of your personal details, some facts about the property, your salary details, your solicitors (if you have appointed them by this stage), and will require a signature.

Mortgage debt
The amount outstanding on your mortgage.

Mortgage deed
This is the agreement which explains the conditions of the mortgage (loan). It is a document to be signed by all parties to the remortgage on your property, and will be sent to HM Land Registry to register the remortgage.

Mortgage incentives
The lender may offer a discount or fee-free period on buildings insurance, accident and sickness insurance, redundancy insurance, or payment protection insurance. This is often done to encourage you to take up the policy, which you are then fairly likely to keep in the longer term. Other common incentives include a free valuation and money towards solicitor's fees.

Mortgage lien
The unpaid balance on the mortgage loan.

Mortgage payment protection insurance (MPPI)
An MPPI policy pays your mortgage for you if you become unable to work for an extended period of time, as a result of redundancy, accident, sickness or disability. It should provide enough income to cover all your monthly mortgage expenses. If you have a repayment mortgage, this should be your capital and interest repayment and if you have an interest-only mortgage, the MPPI should cover your interest payment as well as your normal monthly contribution to the investment vehicle that will repay your loan.

Mortgage reference fee
If you apply for a remortgage or a new mortgage, the new lender will want a mortgage reference from your existing lender. You will probably have to pay for this. Costs £20 - £50

Mortgage term
The period over which the mortgage loan is to be repaid.

Mortgage types 
For example, repayment or interest. Or fixed, capped, tracker, discount or stepped rate etc. 

Mortgagee
A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.

Mortgagor
The mortgagor is another term for the borrower.

MPC
Monetary Policy Committee of the Bank of England. Meets monthly to discuss and alter interest rates etc.

Multifamily mortgage
A mortgage on a multifamily dwelling with more than four families, typically an apartment building.