1. Fraudulent application



An application where false information has been used to illegally obtain a loan.

2. Flexible repayment

Allows you to vary monthly payments to fit temporary changes in your circumstances. You can pay off some of the loan amount in months where you have excess cash (for example, as a result of a bonus or extra commission), or you can reduce payments, or even withdraw cash, when you need extra funds. Not common on dedicated car loans.

3. Freehold

Outright and full ownership of the property and land.

G

1. Gazumping

When before the exchange of contracts a seller accepts a new offer on their house, having already accepted an initial offer.

2. Gross annual income

Your Annual Income before any Tax deductions but excluding bonuses.

3. Ground rent

An annual charge payable by leaseholders to the freeholder of the land - normally due for flats or apartments.

4. Guaranteed loan

A term commonly used in direct marketing campaigns by loan providers. Essentially, loan providers conduct a credit score on their existing customer base before targeting these customers in a mailing campaign. The loan company then knows that all applicants targeted qualify before they apply. The customer also has the knowledge they will be approved. The aim is to improve take-up rates from direct mailing campaigns.

5. Guarantor

A person who promises they will pay the borrower's debts if the borrower fails to.

H

1. Helpdesk

A service provided by an organization to provide support during and after the application process.

2. Homebuyers report

A property survey aimed at providing more information than a mortgage valuation but less information than a full structural survey. It will help the borrower to decide whether to purchase and help the lender to decide how much to lend.

3. Household income

The total income of all members of a household. It is used by loan providers in evaluating applications for joint personal loans.

I

1. IFAs

Stands for Independent Financial Advisor. These advisors should be able to offer you the full range of products from all of the financial product providers or from a panel of provider that they believe to be the best. Can be one man bands up to multi-national companies. IFAs should carry out fact finds on you in order to help them recommend the best courses of action for your finances.

2. Interest only mortgage

A mortgage where only interest is charged during the mortgage term. The capital will need to be repaid at the end of the term, usually from the proceeds of an investment plan such as an endowment policy.

3. Interest rate

The percentage to be paid by you on the capital borrowed. Interest rates vary from loan provider to loan provider. A standard calculation of the total cost to you of borrowing money is presented as Annual Percentage Rate (APR) charge. You can use APR (or typical APR) to compare the cost of various loans.. The APR will include the interest rate charged, and any other charges that are associated with taking the loan.

J

1. Joint credit

Credit issued to a couple based on the assets, income and credit history of both people. Both parties are responsible for making repayments according to the terms and conditions of the loan.

L

1. Land Registry Certificate

Provides details of the property including a plan and, if the property is leasehold, a copy of the lease.

2. Land Registry fee

A fee paid to the Land Registry to register ownership of a property.

3. Leasehold

If you buy a lease holding, you own the property for a set number of years, after which the freeholder owns the property. Most flats in England are leasehold. Legislation has recently been brought in to enable leaseholders to club together to buy the freehold.

4. Life assurance

An insurance policy that pays a lump sum on death, normally to cover the repayment of a mortgage if the borrower dies during the term.

5. Loan application form

A form that must be completed by you to become a personal loan customer.

6. Loan provider

A bank or other financial institution that offers personal loans.

7. Local authority search

Questions to the local authority regarding plans for new road building, planning permission for any building work previously carried out, connection to the mains sewer, etc.

8. Lock-in period

This is the number of years that you have agreed to stay with the lender. Depending on the deal, it could be as low as six months up to the whole of the term. Should you attempt too pay off the mortgage or remortgage during the lock-in period, you may be liable to pay redemption penalties. Always make sure you know how much you are locked in for with your mortgage.

9. Loan to Value (LTV)

The size of a mortgage as a percentage of the value of the property (or its purchase price)