Copy of `Adverse Credit - Mortgage Glossary`

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Adverse Credit - Mortgage Glossary
Category: Economy and Finance > Mortgage
Date & country: 17/11/2007, UK
Words: 54


Adjudication
An adjudication is an old-fashioned term used to describe bankruptcy

Administration Order
An agreement between an individual and a county court. Within this administration order the county court agrees to help the individual make arrangements to pay outstanding debts, of up to £5000, to creditors

Adverse Credit Remortgage
An adverse credit remortgage is the process of using a specific product to pay off one mortgage or a number of debts from the proceeds of a new mortgage. Usually, you will need to use your existing property as security

Annulment of bankruptcy
This is a cancelled bankruptcy

Arrangement to pay
An agreement between a lender and a customer to vary a customer's payment schedule

Arrears
Mortgage payments that have not been made by the due date in accordance with the mortgage deed agreed by the policy holder and the lender

Bad credit mortgage
Another term for an adverse mortgage

Bad Credit Rating
A term used to describe a poor credit rating. Common practices that can damage a credit rating include making late payments, skipping payments or declaring bankruptcy. 'Bad Credit' can result in being denied a mortgage

Bankruptcy
This occurs when a person or a company is declared legally insolvent

Bankruptcy discharge
When a debt is discharged, it is no longer personally enforceable against the debtor. Bankruptcy discharge may happen as quickly as 12 months after being declared bankrupt but the bankruptcy will stay on the credit rating record for a period of up to six years

Bankruptcy Order;
This is a method employed for dealing with debts that cannot be paid. Bankruptcy proceedings free an individual from overwhelming debts

Base Rate
An interest rate set by the Bank of England which reflects the cost of borrowing money from the money markets

Basic Annual Income
The amount of money earned that is guaranteed regardless of the individual or the company performance

Cash Back Mortgage
A mortgage offered by some lenders that includes a payment, either a lump sum or a percentage of the mortgage loan, as an incentive to borrow from them

Certificate of Satisfaction
A county court document confirming a judgment has been paid in full or removed from the public record because it was paid within thirty days

Citizens Advice Bureau
A voluntary service provided in most major towns which offers free advice to individuals on financial matters

Consumer Credit Association - CCA
The CCA is a professional body representing the interests of small companies in the credit industry

County Court Judgment - CCJ
A county court judgement is a judgement for debt in the county court. If a judgment is settled in full within 30 days of the date of the judgment it will not appear in the credit register. In the event of a payment after that date the judgment will appear in the register but will be shown as being satisfied

Credit Card Debt Consolidation Loan
A way of collecting together various credit card debts and paying them all within one monthly payment

Credit Check
Enquiry made on the credit history of an applicant

Credit impaired mortgage
Another term for an adverse mortgage

Credit Rating
A credit rating is way of lenders estimating how much risk there is involved in lending a person an amount of money in terms of how likely they are to pay the money back. The credit rating helps to determine the amount of money which the lender is prepared to lend and also influences the interest rate the person will have to pay on the loan

Credit Rating Repair
Various measures which can be taken to help improve a bad credit rating

Credit Report
A credit report is a detailed account of a person's credit history. It enables lenders to determine how risky it is to lend credit applicants money and aides lenders in setting interest rates

Debt Consolidation
Debt consolidation is a way of bringing all of your debts together to enable you to make one singular monthly payment and avoid the pitfall of allowing high interest rates to get you into more debt. The reasons for doing this are to make life easier and to reduce interest repayments where possible. Also by spreading all the debts over a longer repayment period the immediate costs are reduced

Defaulted Account
This is an account which has been terminated by the lender because the debtor has not kept to a credit agreement and consequently the relationship between you and the lender has broken down. A record of these accounts is kept for six years from the default date

Early Redemption Payment
This is a fixed fee for repaying your mortgage before the agreed time

Electoral roll
Used by the lenders to check the identity of those applying for credit, the electoral roll is a list of the names of all people registered at an address who are entitled to vote.

Endowment
An endowment policy is a life assurance savings scheme which allows you to pay in a regular sum of money, usually on a monthly basis, for a fixed period of time, whilst providing you with life assurance. The money paid into the scheme can be invested in a range of different ways, including stocks and shares

Equity
The difference between the amount owed on a mortgage and the current market value of the property

Financial Services Authority - FSA
The FSA is an independent watchdog set up by the government to regulate financial services and protect your rights. It covers a wide range of services including endowment policies

Independent Financial Advisor - IFA
Individuals who give advice about all aspects of finance

Interest Rate
The amount of money a customer can earn on an investment. It is usually expressed as a percentage of the total sum invested

Interest-Only Mortgage
A mortgage whereby a customer's repayments only contribute to paying off the interest owed on the mortgage

ISA
A way of holding cash deposits, life assurance policies and investments in stock and shares in a tax privileged way. The Government have stated that ISA's will be available for a minimum of ten years

Legal charge
A form of security to ensure payment of a debt

Low credit score mortgage
Another term for an adverse mortgage

Mortgage
A long-term loan used to buy a house or other residential property

Mortgage Term
The length of time agreed by the lender and policy holder before the mortgage must be repaid

Negative equity
When the market value of the property decreases to become less in value than the mortgage. The decrease is known as equity depreciation

No credit check mortgage
Another term for an adverse mortgage

No credit mortgage
Another term for an adverse mortgage

Non status mortgage
Another term for an adverse mortgage

Official receiver
The person responsible for the administration of a bankruptcy

Poor credit mortgage
Another term for an adverse mortgage

Positive equity
When the market value of the property increases to become greater than the value of the mortgage. The increase is known as equity appreciation

Preferential creditor
A creditor in bankruptcy proceedings who is entitled to receive certain payments in priority to other unsecured creditors. These creditors include occupational pension schemes and employees

Public examination
The court may order that a bankrupt be questioned in open court about his or her affairs, dealings and property

Repayment Mortgage
A low risk way to paying off a mortgage whereby the customer's monthly repayment pays off both the capital and the interest. At the end of the term both the loan and the interest will be paid off in full providing payments have been maintained. The alternative mortgage payment method is called an interest only mortgage

Repossession
Members of the Council of Mortgage Lenders record information on customers who have given up their homes or had them repossessed

Sub prime mortgage loan
A subprime mortgage is a mortgage that is specifically designed for people who are denied prime or standard mortgages by traditional lenders

Top-up Mortgage
A top up mortgage is a form of remortgage normally used to provide an overall loan in excess of the loan to value ratio allowed by the primary lender

Trustee
The trustee in bankruptcy is either the Official Receiver or an insolvency practitioner who takes control of your assets. The trustee's main duties are to sell these assets and share the money out among the creditors

Unsecured creditor
A creditor who does not hold security for money owed. Some unsecured creditors may also be preferential creditors