Jargon Buster
Negative equity
When the value of your house falls to less than the mortgage
you have taken out to buy it. This means that you are
unable to repay your mortgage by selling the property
and therefore you are unable to move.
Net
After the deduction of tax. Net monthly repayment Monthly
repayment made to the lender.
New build home
A recently built home with no previous owners.
New for old
Insurance cover which pays the full cost of replacing
damaged or lost property with a similar, new item.
Non-profit endowment
This type of endowment guarantees repayment of the loan.
There are no annual or final bonuses and you generally
have no chance of a cash surplus on maturity. Essentially,
there is no benefit other than life cover which is eaqual
to the value of the mortgage you have ttaken out. This
is seen as an inefficient method of saving the money to
pay back and is therefore rarely recommended as a method
of repaying a mortgage.
Non-status mortgage
Mainly for people whose income is difficult to assess
using the standard method adopted by most conventional
mortgage lenders. Bonuses, commission and seasonal work
can cause income to vary over time or be difficult to
guarantee and this may not be considered acceptable in
order to get a loan. The main groups of people that opt
for self-certification mortgages are: self-employed and
unsalaried company directors, contract workers (increasingly
common in technology-based industries), commission-based
workers (often in sales, recruitment etc.), people with
seasonal earnings. The interest rate you are charged will
be higher to compensate the lender for the increased risk.
Notice
An official request to vacate a property. A freeholder
or landlord may serve you notice on your home for a variety
of reasons, including failure to pay rent, breach of lease
and in the case of rented property, simply because they
want to sell the property.
Notice of default
A lender's initial action when a mortgage payment is late
and attempts to reconcile the issue out of court have
failed.
