Borrowing products Flashcards
What is the first stage of the mortgage process
The buyer approaches the lender
What is the second stage of the mortgage process
Lender chooses how much to lend based on affordability and deposit
What is the 3rd and 4th (last) stages of the mortgage process
The legal process
What is the formula for loan to income
Basic annual salary + extra income - monthly credit commitments
What is owners equity
The difference between the value and amount lent
How long is a typical mortgage
25 years
What is capital
The amount borrowed that must be paid back in full
How do offset mortgages work
You pay no interest on the deposit
What is a loyalty mortgage
Providers give discounts to loyal customers, they have to have an open and active account with at least £800 in it for the last 3 months
How does a murbaha mortgage work
Immediately registered in your name
How does an Ijara mortgage work
Only rent the property from a shariah compliant lender
What is loan forbearance
If you cannot pay your mortgage repayments you should be treated fairly
What are the four types of government home ownership schemes
Help to buy equity loans
Help to buy mortgage guarantees
Lifetime ISA’s
Share ownership schemes
