Glossary of mortgage terms - E
Not sure what a MIG is or what fixed-rate and leasehold all means? We can help you through the maze of jargon with our easy-to-use mortgage glossary. Find the words you want using the buttons below.
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Early repayment charge
The amount charged by a lender for withdrawing from a mortgage before a given date specified in the mortgage conditions. Lenders will normally impose such a charge on a fixed or discounted loan.
Earned income
Income that is earned from an employment or self employment, as distinct from investment income from property or securities.
Employed
Normally refers to a person (the employee) who has an open-ended contract of employment and has income tax and national insurance contributions deducted from their salary.
Employer's reference
A written statement from an employer confirming the borrower's employment, giving details of his or her salary and length of service; an essential requirement for assessing an employee's ability to repayment the mortgage.
Employment status
The basis of an individual's employment: i.e. employed, self-employed, controlling director or not in employment.
Endowment
A life assurance policy into which you pay monthly premiums. The proceeds of an endowment policy will be free from all taxes provided the policy has conformed to the qualifying rules. The insurance fund does, however, pay tax on the profits it achieves whilst the fund is growing.
Equity
The stake that you own in your home, i.e. the property value less the mortgage loan outstanding.
Equity appreciation
Increase in the equity you have in your home.
Exclusive products
Whilst such mortgage products are funded and administered by a particular mortgage lender, they are available only from certain mortgage brokers or other particular distribution channels.
Existing liabilities
Your debts, other than an existing mortgage such as hire purchase, personal loans, school fees etc.
Why Avocado?
Avocado Mortgages can help power charge your finances, releasing equity tied up in your property.
- To treat our customers fairly and with honesty and integrity in a courteous manner at all times.
- To offer our professional yet personal service to our customers in a speedy manner.
- To endeavour to recommend the most suitable lenders and products to satisfy customer needs, using the whole market place.
- To provide our customers with all the relevant information required during the process and to ensure that customers fully understand the information.
- To endeavour to make prompt contact with new clients to start our advice process as soon as possible, ensuring that the client is able to speak to an experienced advisor.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
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