Glossary of mortgage terms - F
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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Feuhold
Equivalent of a freehold under Scottish law.
First charge
Normal legal charge used to secure the main mortgage. A lender with a first legal charge over a property has a first call on any funds available from the sale of the property. See also: second charge.
First time buyer
Person wishing to purchase a property for the first time. Some lenders offer preferential lending terms to first time buyers. A borrower who has owned a property before but has sold this prior to buying again may be offered first time buyer terms by some lenders. However, this will vary on a lender to lender basis.
Fixed rateloan
A loan where the initial payments are based on a certain interest rate for a stated period and the rate payable will not change during that period regardless of changes in the lender's standard variable rate.
Flexible mortgages
A flexible mortgage allows you to make overpayments in order to repay the mortgage early or save for a special event.
Freehold
Land or property which is owned outright, as opposed to leasehold where the owner has the right to occupy the land or property for a given period of years only. See also: feuhold.
Freehold flat
A flat which has the freehold of the land on which it is built. Such properties are notoriously difficult to get a mortgage on because, if they do not benefit from some sort of legal contract from the owner of any supporting or adjacent property, major difficulties can be experienced in the event of anything affecting them structurally (e.g. subsidence.) This should not be confused with a situation when one or more leaseholders in a block of flats acquires the freehold interest in the property and it is sold with the benefit of a share in the freehold. In this situation the individual leases on the flats should still be left in place in order to provide the necessary legal agreements, however the leaseholders may grant themselves extensions on the lease as they wish.
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Avocado Mortgages can help power charge your finances, releasing equity tied up in your property.
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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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