A
Adverse Credit A term used to describe someone with a history of poor credit transactions. This could include late payments, CCJ’s, mortgage arrears or bankruptcy
Agricultural Producing crops, cultivating soil, and raising livestock. Also known as farming
APR (Annual Percentage Rate) The amount of interest charged against the loan each year.
Arrangement Fee The fee charged to cover administration costs
Arrears When mortgage or other loan repayments have not been made on time or at the correct amount
Asset Any possession that has value in an exchange.
Assured Shorthold Tenancy (AST) A tenancy with a minimum term of 6 months
Audit An examination of a company’s or individual’s accounting records
Audited Accounts An inspection of the accounting procedures and records
by a trained individual or group.
Additional Security When lending exceeds a certain loan-to-value lenders may require additional security.
Agricultural Tie Restriction placed on certain rural properties which requires that the land adjoining a residence must be used for farming.

B
Bankruptcy A situation where an individual is incapable of settling their debts and has been served a bankruptcy order by a court
Borrower Any person or group that obtains funds from a lender for a particular period of time
Bridging An equity based lending facility secured to solve short term financing needs
Broker An individual or company which brings borrowers and lenders together for the purpose of loan origination

C
Capital Can mean money or other properties used in transactions
County Court Judgment (CCJ) An order of a court against a debtor to pay an outstanding debt or bill
Commercial Activities of industry, business, and trade
Commercial Lease Entering into a lease transaction for business or commercial purposes
Commercial Property Business properties such as office buildings, hotels, stores etc. which are intended to operate with a profit
Consolidate To bring together various financial obligations under one agreement
Contract Hire Paying to borrow an item for an agreed length of time
Cooling Off Period A period after the purchase of a financial product that allows the buyer to reverse the purchase
Credit The lending of money from a financial institution to an individual or company
Credit Reference Agencies Agencies which collect information from various sources including the Electoral Roll and other lenders
Credit Scoring The system employed by lenders to calculate the statistical probability that a loan will be repaid
Credit Search Looking at your financial background or status

D
Data Protection Act (1984) Provides a legal basis for the privacy and protection of data of UK citizens and businesses
Development A project of building of a property or properties
Direct Debit An arrangement made between a customer and their bank for certain payment to be made to third parties on specified dates
Discharged Bankrupts Person who has satisfactorily served their bankruptcy term

E
Early Repayment Charge/ Early Settlement Figure/ Sum A charge made by a lender if the loan is redeemed before the agreed term has passed

F
Facility A loan account
Facility Fee The sum of money that is charged for the financial arrangement
Finance Money
Financial Associate Someone who is linked to you through a monetary agreement
Financial Ombudsman Service South Quay Plaza, 183 Marsh Wall, London E14 9SR.  0207 964 1000. Can help with most financial complaints
Financial Year End Accounting year end date
First Charge The security that a mortgagor has over a property secured against the mortgage
Fixed Rate An interest rate that remains the same for the term of the loan
Formal Reminder An official letter telling you of a missed payment
FSA Financial Services Authority The statutory financial regulator in the UK, regulates banks, building societies, credit unions, insurance and investment firms and independent financial advisers.
Funding A sum of money set aside for a specific purpose

G
Gross Before the deduction of tax

H
Hedging To prevent complete loss of a transaction using an additional amount or amounts against the original transaction
Hire Purchase Also known as ‘conditional sale’ a hire purchase agreement is a loan linked to a specific purchase.
Home Owner Loan A secured facility of borrowing against a mortgagees property

I
Income Capacity
Interest The amount charged to the borrower for being able to use the lender’s money
Interest Only Where only the interest on a loan or mortgage is paid
Interest Rate The amount of interest charged, usually a percentage of the money borrowed, calculated over a year
Intermediary Acting between persons
Introducer Someone that has recommended you
Investor Someone that puts money into a facility to gain profit
Individual Voluntary Arrangement (IVA) An alternative to bankruptcy proceedings whereby an arrangement between a debtor and their creditors is established for the settlement of debt

J
Joint Applications When two people apply together

L
Late Payments When money has not been received on time or is overdue
Late Payment Charges When a fee is applied because the payment has not been received on time (see above)
Lease Purchase When an item is hired (usually a vehicle or equipment) for an agreed term with the option to purchase at the end
Lender Someone who will let you borrow money
LIBOR London Inter Bank Overnight Rate The rate of interest that banks offer to lend money to each other
Loading An addition to the net premium
Loan Agreement Terms and conditions for which you have to pay the funds back
Loan Term/Period Length of time to borrow money
Loan to Value (LTV) The ratio between the size of the loan sought and the valuation of the property to be used as security

M
Margin An amount that is allowed but that is beyond what is needed
Market Rent What the reasonable amount to pay is
Monthly Repayment The amount of money that has to be paid at intervals throughout the year
Mortgage A loan, traditionally used to purchase a home, where the property is used as security for payment of the debt

O
Occupier Someone who lives at a particular place for a prolonged period
Overdraft Where the amount of money withdrawn from an account is greater than the amount available
Overpayment Paying more than the stipulated minimum payment

P
Packaged Cases An underwriting process carried out by a third party to include the majority of paperwork completed on the clients behalf
Policy Document Legal document containing the terms of your facility

R
Redemption Penalty Most lenders of a fixed rate mortgage will charge a redemption penalty if the loan is repaid (or re mortgaged) before the term has completed
Refinances Reorganising funds
Reinstall Shortfall
Renegotiate To agree another amount
Repayments The amount of money you have to pay back
Repossession The legal process by which a borrower is deprived of their interest in the property as a result of default
Residential Private home
Restructure Re organise finances
Right to Buy Where a tenant living in a council owned property purchases it at a discount

S
Second Charge Lenders with second charges secured against a borrower’s property receive the remains of the equity in the event of the borrower defaulting
Secured Borrowings Where collateral is used (usually a residence or business) funds, normally at a lower interest rate than on unsecured loan, where no collateral is used
Secured Loan A loan where the borrower offers an asset to which the lender has access in the event of the borrower failing to make the loan repayments
Security Check A procedure to find out about your financial past
Self Cert A declaration signed by a mortgage applicant stating their income and that they can afford the repayments
Semi Commercial Property Retail property with dwelling above

T
Tenancy An agreement whereby  land/property is leased to a tenant
Term of Facility Length of time you borrow funds over
Terms of Business The conditions in which a facility is agreed
Title Deeds Documents evidencing ownership and extent of a property, will also show whether there are any mortgages on the property
Total Amount Payable This is the amount borrowed after all repayments have been met on time
Typical Example An illustrated figure of average rates

U
Uncapped Only A type of mortgage which has no limit on the fluctuation on the interest rates
Up front Fee The amount of money that you have to pay in the beginning

V
Valuation A professional assessment of the value of a property given in writing by a registered valuer
Value Added Tax (VAT) An indirect tax (17.5%) levied on goods and services in the UK