Finance Flashcards
what are the possible funding sources?
family/bank loan; mortgage (max. 95% PP)
what are the types of mortgage?
- repayment
- interest-only
the mortgage can be a combination of both
what is a repayment mortgage?
monthly loan + interest payment
what is the advantage of a repayment mortgage?
mortgage paid at end of term
what is an interest-only mortgage?
monthly interest payment only
what is the advantage of an interest-only mortgage?
payments often lower
what is a regulated mortgage?
mortgage over individual’s UK property and at least 40% used as residence by borrower or immediate family
what is the solicitor’s involvement in regard to the mortgage?
Solicitor can only give general mortgage advice. They can only give specific advice if authorised under FSMA 2000 or exempt.
what will the lender want before agreeing to a mortgage?
B must obtain valuation & B’s solicitor must prepare certificate of title (common but not mandatory)
what is a certificate of title? how is this completed?
series of statements (statements not amended). Common but not mandatory.
o Statement true solicitor does nothing.
o Statement false solicitor makes disclosure.
what is the purpose of the COT?
confirms property has ‘good and marketable title’
who usually prepares the COT?
B’s solicitor usually gives copy of COT to lender to save costs
