Jargon Buster
Off-plan
This is when you buy a new home before it has been built
based on the plans and artist's impressions.
One hundred percent mortgage
A loan for the full cost of the home you are buying if
are unable to raise a deposit to buy a property. You may
have no existing equity, no savings, be using up all you
do have on the other costs of the move, or perhaps be
saving what you do have so that you can fix up your new
home when you do buy it.
Outstanding balance
The amount to be repaid at any point in time.
Over insured
This is where you have taken an insurance policy that
covers you for more than you need and as such you will
be paying a higher insurance premium than you need to.
It may be that the re-build cost of your home has been
overestimated or that your contents insurance covers you
for more than the total value of your possessions.
Overdraft facility
This is a facility on the Bank Account which allows customers
to borrow up to a pre determined limit. This limit must
be agreed in advance and is subject to status.
Overhanging redemption penalty
An early redemption charge that lasts beyond the benefit
period is referred to as an extended or overhanging redemption
penalty. These should be avoided where possible.
Overpaid funds
The amount you have paid in excess of your regular monthly
payments.
Overpayment
The difference between your regular monthly repayment
and a higher amount that you choose to pay.
