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English Glossary |
APR
The Annual Percentage Rate. This is the percentage of
interest you will pay each year on your loan or mortgage. It is the method
used to compare one product with another, or to describe the total charge
for credit over the term of the loan. |
CAPITAL
This describes the initial amount that you borrow
from us. |
COMPLETION
Completion is the final legal transfer of ownership
of the property - when the property legally becomes yours. At V.B. Financial
Services S.L., we keep delays to a minimum and complete as soon as possible.
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CREDIT
SEARCH
This check is carried out by a Credit Reference
Agency to help us assess your application. It will reveal details about your
credit history, together with information about credit agreements you have
with other organisations. Even if your credit search reveals credit problems
in the past, you shouldn't worry. We treat each case individually, and can
probably still help you. |
DECISION
IN PRINCIPLE
Based on the information you provide, we can normally
let you know very quickly if we are likely to offer you a mortgage. This is
a decision in principle, made subject to references, valuation and other
conditions. |
EQUITY
This is the amount of money you would have if you
sold your home. To calculate this, subtract the value of your outstanding
mortgage and any secured loans from the current value of the property. |
EXCHANGE
The exchange takes place when you pay your deposit,
and agree a completion date. |
FREEHOLD
A freehold property is one where you are the outright
owner of the land the property is built on - as well as the bricks and
mortar. |
INITIAL
RATE
This is the rate of interest you pay when you first
begin to repay your mortgage. |
LEASEHOLD
With a leasehold property, you have the right to live
there for a specified length of time, without owning the land the property
is built on. As a leaseholder you may have to pay rent or service charges to
the landowner. |
LTV (Loan
to value)
The loan to value ratio is the size of your mortgage
as a percentage of the purchase price. For instance, if you borrow £60,000
on a property valued at £100,000, your LTV would be 60%. |
REMORTGAGE
A remortgage is when you decide to switch your
existing mortgage without actually moving house. You may well want to
remortgage if you are looking to raise extra cash or save money on your
repayments. |
VALUATION
This is a professional check carried out by a
surveyor to be sure of the value of your property |