The Glossary

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The Letter V
This section provides information on terms and phrases beginning with the letter V
At the grabber we know finance is full of confusing terms and phrases, and so on this page we explain:
Valuation Report | Variable Rate Mortgage

Valuation Report

A valuation report or valuation survey, as it can also be called, is carried out for the purpose of obtaining or granting a mortgage and is usually prepared on behalf of the mortgage lender. Although the valuation report is referred to as a survey it does not go into nearly as much detail as a homebuyers report would. The mortgage lender will certainly insist on a valuation to ensure that the property is worth the amount being asked for it. The lender will want to ensure that the property will not suddenly decline in value making it a safe investment and to make sure you will later be able to sell it again.
For those who are interested the Grabber has a section on property finance.

Variable Rate Mortgage

The variable rate mortgage is the most commonly used mortgage in the UK, but since it is tied to the base rate it is not be the most cost effective mortgage available. The base rate is set at monthly meetings and is dependant on the markets conditions at that time. This is then the standard interest rate used for most financial products. The mortgage lender will then add their interest rate on the top of this, which is their charge for lending the mortgage loan. The part where the mortgage becomes variable is because the base rate can go up as well as down. The mortgage lenders standard rate usually will remain the same, but this is dependant on the individual lenders and current market conditions.
If you are after property information the Grabber has a mortgage section.

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