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JARGON BUSTER

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Annuity Mortgage

Also known as a Repayment mortgage – every month over a set number of years, you pay back a portion of the money you’ve borrowed (capital) along with the interest. The mortgage is fully paid off at the end of the term.

Annual Percentage Rate (APR)

APR calculates the total interest to be paid over the whole term of the mortgage and includes any charges, arrangement fees to be paid as well as the main interest rate.

Appreciation

Any increase in the value of the property.

Approval in Principle (AIP)

An approval in principle or AIP is simply an indication of the amount of money that a bank or lending institution is likely to lend a potential borrower to purchase a home. The approval is based on a sample of information provided by the customer. While an AiP is certainly a useful tool, in that it provides the customer with an indication of the amount of money that they could potentially spend on the purchase of a home, an AiP is NOT an approval for a mortgage and it should not be taken as such by a potential borrower

Auction

Sale of a property to the highest bidder, whom, on winning the bid is legally bound to buy the home. It is important to have mortgage approved and 10% of purchase price ready to pay on completion of bidding during auction process.

Arrears

The payment(s) due when a mortgage payment is not made by the due date. A property may be repossessed if the owner fails to keep up repayments.


WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY LOANS SECURED ON IT.