Mortgage Glossary Index
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equity
When the value of your house falls to less than the mortgage
you have taken out to buy it. This means that you are unable
to repay your mortgage by selling the property and therefore
you are unable to move.
Net
After the deduction of tax. Net monthly repayment Monthly
repayment made to the lender.
New
build home
A recently built home with no previous owners.
New
for old
Insurance cover which pays the full cost of replacing damaged
or lost property with a similar, new item.
Non-profit
endowment
This type of endowment guarantees repayment of the loan. There
are no annual or final bonuses and you generally have no chance
of a cash surplus on maturity. Essentially, there is no benefit
other than life cover which is eaqual to the value of the
mortgage you have ttaken out. This is seen as an inefficient
method of saving the money to pay back and is therefore rarely
recommended as a method of repaying a mortgage.
Non-status
mortgage
Mainly for people whose income is difficult to assess using
the standard method adopted by most conventional mortgage
lenders. Bonuses, commission and seasonal work can cause income
to vary over time or be difficult to guarantee and this may
not be considered acceptable in order to get a loan. The main
groups of people that opt for self-certification mortgages
are: self-employed and unsalaried company directors, contract
workers (increasingly common in technology-based industries),
commission-based workers (often in sales, recruitment etc.),
people with seasonal earnings. The interest rate you are charged
will be higher to compensate the lender for the increased
risk.
Notice
An official request to vacate a property. A freeholder
or landlord may serve you notice on your home for a variety
of reasons, including failure to pay rent, breach of lease
and in the case of rented property, simply because they want
to sell the property.
Notice
of default
A lender's initial action when a mortgage payment is late
and attempts to reconcile the issue out of court have failed.
