Mortgage Terminology

Mortgage Advice - Mortgage Terminology

PROPERTY ADVICE BLOG - Mortgage terminology

•    Re-mortgaging - this usually occurs when you decide to change from your current mortgage scheme to another lender for financial reasons.

•    Loan to Value (LTV) - the ratio between the size of your mortgage and the valuation of the property.

•    Redemption - instead of following a repayment plan, borrowers pay the mortgage earlier. This can happen when a client sells their property and pays the lender in one lump sum or takes out a new mortgage with a different provider.

•    Mortgage gross lending - this refers to the figure for all mortgage lending, new loans and re-mortgaging within a set period of time.

•    Outstanding mortgage balance - the total amount of loan still to be paid at a particular time.

•    Net mortgage lending - this figure can be found by subtracting repayments, loan losses and redemptions from the total gross lending within a given time frame.

If you’re still unsure which type of mortgage is best for you, take the property advice of an impartial mortgage or financial advisor. In this way you’ll be getting the best mortgage advice for your own individual situation, saving you time, money and stress.