13. Post-sale Finance, Costs & Debt Consolidation Flashcards

1
Q

What is a drawdown facility

A

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

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2
Q

What is a further advance

A

A top up mortgage to an existing borrower

Often arranged to improve the property

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3
Q

Second charge/mortgage

A

Another way for home improvements

Loan secured on property from a different lender

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4
Q

What is a remortgage

A

Replacement loan taken out by same borrower and same house. probably different lender

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5
Q

What is a bridging loan

A

Short term loan used to bridge any time gap between buying a new property and selling the old one

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6
Q

Release of part security

A

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

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7
Q

Lifetime mortgages

A

Loan secured against value of your home

No monthly payments

Repaid when you die or go into care

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8
Q

Redemption of a mortgage

A

Occurs when all monies have been received by the lender

Lender then vacates interest (discharging)

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9
Q

Negative equity

A

Where the mortgage loan is higher than property value

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10
Q

What is meant by equity of redemption

A

The legal right of the borrower to pay off their mortgage loan at anytime

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