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.
