Getting it Financed

Question 1

Which market must estate agents be knowledgeable about?

Answer 1

The home financing market.

Question 2

When can it be relatively easy to get financing at reasonable rates?

Answer 2

When economic conditions are good.

Question 3

When interest rates ____, it becomes progressively more difficult for buyers to get _______, and this becomes a significant hurdle in the _______ _______.

Answer 3

• Rise
• Funding
• Selling process

Question 4

Types of financing available? (FSTD)

Answer 4

1.) Fixed rate mortgage
2.) Standard-variable-rate mortgage
3.) Tracker mortgage
4.) Discount mortgage

Question 5

Fixed rate mortgage?

Answer 5

Paying the same interest rate for a specific period, often 2 or 5 years.

Question 6

After the fixed-rate mortgage period has expired, where do you move to unless you secure another fixed-rate deal?

Answer 6

To the lender’s standard variable rate mortgage.

Question 7

Standard-variable-rate mortgage?

Answer 7

A rate the lender sets and it can change at any time.

Question 8

Tracker mortgage?

Answer 8

Paying an interest rate that is a set percentage above the base rate, either for a set number of years or the lifetime of the mortgage.

Question 9

Discount mortgage?

Answer 9

Paying the lender’s standard variable rate with a fixed discount. It may have a rate it can’t dip below known as a collar, or a rate it can’t exceed that is known as a cap.

Question 10

Mortgage?

Answer 10

An agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest.