13. Post-sale Finance, Costs & Debt Consolidation Flashcards
What is a drawdown facility
A way of raising finances usually on offset and current mortgages
When a customer increases their borrowing amount to an agreed level above the initial mortgage loan
What is a further advance
A top up mortgage to an existing borrower
Often arranged to improve the property
Second charge/mortgage
Another way for home improvements
Loan secured on property from a different lender
What is a remortgage
Replacement loan taken out by same borrower and same house. probably different lender
What is a bridging loan
Short term loan used to bridge any time gap between buying a new property and selling the old one
Release of part security
Occurs when borrower requests that some of the land by the mortgage property be released from the charge.
Usually when they want to sell land
Lifetime mortgages
Loan secured against value of your home
No monthly payments
Repaid when you die or go into care
Redemption of a mortgage
Occurs when all monies have been received by the lender
Lender then vacates interest (discharging)
Negative equity
Where the mortgage loan is higher than property value
What is meant by equity of redemption
The legal right of the borrower to pay off their mortgage loan at anytime
