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The Glossary
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The
Letter N
This
section provides information on terms and phrases beginning with
the letter N
At the grabber we know finance is full of
confusing terms and phrases, and so on this page we explain:
Negative Equity |
Non Status
Negative equity is when a homes value is worth less than is owed
to the mortgage lender.
Equity in reference to property is the difference between the
market value of the property and the amount borrowed to purchase
it usually a mortgage. Negative equity usually only happens when
property prices fall after purchasing. Borrowers who brought
property when at the height of a property boom could be more at
risk of negative equity especially if they extended themselves
when arranging the mortgage loan.
In today's property market negative equity is highly unusual,
however, there is always a chance that property prices could
fall dramatically and homeowners may find themselves with a home
which on paper is worth less than the mortgage they have to
purchase the building.
When a property is in negative equity it may be difficult to
sell it in a attempt to recover the loss, due to the properties
market value being lower, the borrower may be unable to get the
same price that they paid for the property.
A positive thought on negative equity is that although property
values may fall it should only be temporary, and statistics show
a steady rise in property over the last few decades.
If possible ride it out, it is only a matter of time until
property prices will rise up again.
For visitors interested the Grabber has a section on
property finance.
Non status is a term used to describe a individual who is unable
to prove their income or have yet to establish a credit history.
When a person can not provide any proof of income or has little
or no credit record, then they can be considered to have a
non-status credit rating.
Typical non status people include,
Self employed who have to self cert their own finances,
Contract workers without a regular income,
Seasonal workers with income at particular periods,
Unsalaried workers who may be bonus or commission driven,
Consumers who have yet to build a credit history.
Having a non status rating could be a serious block when
applying for credit. Many lenders are just not prepared to lend
to those people without perfect credit. When applying for
finance the non status rated could use their current mortgage
statements if a home owner, to show how reliable the repayments
have been. If tenants, they could ask their landlord to provide
a reference to certify that rental payments were always punctual
and in full.
But those non status people could still be turned away, the
Grabber has application forms for finance where your individual
situations are looked at before you are given an answer to your
request for finance.
If you are interested in applying for finance we have
application forms, where even those with problem credit are
given a fair hearing.
Got a piece of jargon you want explaining, it's time to let The Grabber loose.
Associated Pages
non-status remortgage |
new build
mortgage
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