A mortgage broker is an intermediary who helps you find and buy a mortgage. For example, if your mortgage is £75, 000 but your home is only worth £65, 000 you will have negative equity of £10, 000. One of the specifications for all cat mortgages is that migs are not required as part of the mortgage product. Will my mortgage indemnity guarantee help? Find the right mortgage mortgage best buys. Capped- rate mortgage: the mortgage interest rate cannot go above a certain level, even if mortgage rates rise, but can fall down as rates drop.

Mortgage deed - this is the legal document which establishes the loan on a property. Guarantor - this is a person who will guarantee that the mortgage repayments are made in the event of default by the borrower. There are several kinds of variable rate mortgages. Read the page on joint mortgages for more information. Repayment mortgage: the monthly repayments pay off both the interest and some of the capital on the mortgage.

This page explains the terms you'll come across when looking into getting a mortgage. Amount payable and repayment terms of a m. I. G. Vary according to each lender's mortgage arrangements. Also known as mig , indemnity guarantee premium and mortgage indemnity premium. Flexible repayment mortgages may allow payment holidays and/or the amount of monthly payments to be varied.

The sum borrowed in a mortgage. This insurance does not cover you it covers your mortgage lender against losses should your home be repossessed. Usually charged on mortgages over 75% of the house value.

If you would, choose a mortgage that calculates interest daily, as many modern mortgages do. If you have an interest only mortgage such as an endowment, isa or pension mortgage , it will probably include life insurance. If a borrower defaults on repayments and builds up substantial arrears, the mortgage provider may have no alternative but to repossess the property and recoup their losses. Remortgage self cert. Typically a mig will add £1, 600 to the cost of a £100, 000 mortgage.

An insurance policy that protects the lender against default of mortgage repayments. For example, house value=£100, 000, mortgage size=£90, 000. Your mortgage lender may be able to offer an insurance package which is included in your monthly mortgage payment. Higher early redemption fee - this phrase will usually be found in conjunction with fixed rate, capped and discounted mortgages. If the property is worth £500, 000, a 90% ltv would allow for a £450, 000 mortgage.

So, when looking for your next mortgage, make sure that you take these five factors into account. Income multiplier - lenders use income multipliers in calculating how much they can lend on a mortgage. Type of mortgage where monthly payments are made into a endowment life assurance policy.

Illustration - this is a quotation given to a potential borrower to show the monthly cost of a mortgage and any other expenses incurred with the loan. The interest rate of a capped rate mortgage is guaranteed not to rise above a certain level during the capped period, which is often between three and five years. This has meant that as high prices have increased, the deposit required for a mortgage has increased. Further advance - this is an additional loan made by the existing mortgage lender and secured by the first charge on the property.

Equity is the difference between what your home is worth and how much you owe on your mortgage. For example a mortgage of £30, 000 on a property valued at £40, 000 would be sh You should also consider taking out a mortgage protection policy.

Endowment mortgages already include life cover. Gross monthly payment - this refers to the monthly mortgage payment before the deduction for miras tax relief. An insurance policy that protects the lender against default of mortgage repayments.