The Glossary
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The
Letter E
This
section provides information on terms and phrases beginning with
the letter E
At the grabber we know finance is full of
confusing terms and phrases, and so on this page we explain:
Early Redemption Fees |
Endowment Mortgage |
Equity |
Estate
Agents |
Event Loans
|
Exchange of Contracts
Early redemption penalties are a mortgage penalty charge,
usually associated with particular mortgages that provide some
sort of interest rate protection. The fee comes about when the
mortgage holders attempt to leave their mortgage early as in the
case of re-mortgaging. Not all mortgage lenders and their
packages have early redemption penalty fees.
The lender of the protected mortgage agrees to lend the mortgage
with benefits to the borrower, but in return the borrower agrees
to keep the mortgage for a minimum term. This term of agreement
is usually indicated in the mortgage agreement. If the borrower
wants to pay off their mortgage early or seeks to change lenders
and re mortgage they could be charged a fee to do so, since they
are breaking the agreement.
The particular size of the redemption fee will vary between
lenders but it will increase the cost of re-mortgaging.
For
those visitors interested in
property re-mortgaging the Grabber has a section on it.
An endowment mortgage is a savings based mortgage with life
assurance. The endowment mortgage was to work as follows, part
of the monthly repayments paid the interest on the mortgage. The
other part of the repayment was invested by the lender in the
stock market. These mortgages were designed to allow holders to
pay a smaller monthly repayment.
At the end of the mortgage term your invested amount should have
be enough to pay off the remaining balance of the mortgage.
However holders of many current endowment mortgage policies will
have been notified that their final invested amount is unlikely
to cover the final balance of their mortgage, leaving them with
a shortfall they must provide.
It could be possible to sell the policy to another company and
this is called surrendering the policy. There is also a lot of
people taking legal action against the lenders who sold them the
endowment mortgage, based on the belief they were ill informed
of this type of mortgages pitfalls. If looking to take on a new
endowment mortgage it is advised that time is taken to research
all the conditions and to be aware of any pitfalls.
If you are a UK resident and after a mortgage the Grabber has a
mortgage section on it.
Equity is the difference between the amount outstanding on a
mortgage loan and the current market value of the property.
If you have equity in your property you might be interested in
releasing some or all of it to create finance. This process is
called equity release. Equity release is creating finance from
the value of a property or home without having to move out of
it.
The most efficient way to release the equity from your home is to
re-mortgage it, how this works is essentially you re-mortgage
for more than you currently owe and use the remainder created as
you see fit.
Another way to release equity from your home is to get a
homeowner or "secured loan", the loan uses your equity as
security. However a loan secured on your homes equity may only
raise a small amount. This amount could be adequate for your
needs, however there are secured loan products that permit
finance at amounts greater than your homes available equity,
this is dependant on the approval from the lender.
For those visitors interested in
equity release the Grabber has a section on it.
An estate agent is a professional employed to assist in the
selling of property or to find property to purchase. The estate
agent should be able to perform the more tedious and time
consuming tasks involved in property buying and selling due to
their experience and extensive contacts in the industry.
An estate agent should be able to assist in selling your
property, by finding potential buyers and attending viewings.
When using an estate agent to assist with home buying the agent
will have lists of property for sale in your area and in your
price range. There are some standard tips that customers should
be aware of and adhere to and estate agents should assist with.
Research the Market
What other properties are currently on the market in the area
and how quickly they are selling? Compare the property to others
on the market, use four or five in a local proximity, and
calculate a reasonable price. A reasonable price will help the
process move along.
Selling Property
Sellers Disposition
Always be positive about the property you are selling otherwise
the potential buyer may sense this. Have a good reason for
selling and moving. Keep your cool, otherwise potential
purchasers will be put off and may even put in an offer
considerably less than the asking price.
Target the Buyers
If your property would suit first time buyers then target first
time buyers, remember these people are just starting out on the
property ladder and you may wish to consider including
appliances, curtains and carpets in the asking price. Find out
about local amenities and entertainment. You may not use or be
interested in the amenities but your potential buyer might, and
they can be a great selling point.
Presentation
Ensure the property is clean and tidy and then stage it to take
advantage of its best features. Do not neglect the garden and
the properties exterior, a buyer may not have time for these
aspects at first and having them in a sound and pleasant
condition is advised. Remember you are also part of the show so
make sure you present the desired image.
Buying Property
Buyers Disposition
Be on time for viewings and appointments and be interested in
what the seller has to say, they will know the pros of the area.
Remember you are in some ones home and always ask for permission
before wandering around.
Befriend the Seller
You want to be on good terms with the seller, there will be a
better chance of your offer being accepted if the seller likes
you. You are also less likely to be gazumped if you meet the
seller. The decor may not be to your taste but pointing this out
may get the sellers back up, and you want to get them on your
side.
Making an Offer
Before making an offer, be sure the property is what you are
after and your finance is in place. Are you in a chain and will
you be waiting for others to move before you can. Ensure you
have visited the area at various times of the day, this will
give you a better impression of traffic in the area, and ensure
it meets your needs.
Event Loans
An event loan is a personal loan arranged to help pay for an
event or an occasion for which the funds aren't ready. You could
require a operation but face a long wait on the NHS, arranging a
personal loan could enable you to go private. Arranging a
personal loan to help pay for a event may at first seem strange,
but sometimes waiting to save up just isn't a viable option. The
Grabber can help you arrange a personal loan to pay for that
occasion where you just can't wait.
For interested visitors the Grabber has a section on
event loans.
The exchange of contracts is usually encountered in property
buying during the later stages when the price has been agreed
and both parties are satisfied. Then the contracts are exchanged
between the seller and purchaser's solicitors and this results
in both parties being legally bound to the sale. This provides
security and legality to property buying and creates an avenue
for compensation in the case of a party pulling out of the
purchase.
Got a piece of jargon you want explaining, it's time to let The Grabber loose.
Associated Pages
Equity
loan remortgage |
endowment
mortgages
|
