Mortgage Glossary Index

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Off-plan
This is when you buy a new home before it has been built based on the plans and artist's impressions.

One hundred percent mortgage
A loan for the full cost of the home you are buying if are unable to raise a deposit to buy a property. You may have no existing equity, no savings, be using up all you do have on the other costs of the move, or perhaps be saving what you do have so that you can fix up your new home when you do buy it.

Outstanding balance
The amount to be repaid at any point in time.

Over insured
This is where you have taken an insurance policy that covers you for more than you need and as such you will be paying a higher insurance premium than you need to. It may be that the re-build cost of your home has been overestimated or that your contents insurance covers you for more than the total value of your possessions.

Overdraft facility
This is a facility on the Bank Account which allows customers to borrow up to a pre determined limit. This limit must be agreed in advance and is subject to status.

Overhanging redemption penalty
An early redemption charge that lasts beyond the benefit period is referred to as an extended or overhanging redemption penalty. These should be avoided where possible. 

Overpaid funds
The amount you have paid in excess of your regular monthly payments.

Overpayment
The difference between your regular monthly repayment and a higher amount that you choose to pay.