A Must Know Terms for Home Buyers :
A to Z Property Terms Glossary
Approval in principle
A certificate which some lenders will give you that shows the amount they will probably be prepared to lend you. This is not a guarantee, but can be helpful when signing up with estate agents.
Arrears
The amount of mortgage payments you have fallen behind with - usually called mortgage arrears - termed in either months missed or pounds outstanding.
Bad Credit
A term applied to a borrower or application that has problems with credit, for instance - late payment, bankruptcy etc.
Bankrupt
A debtor (person, company, organisation) whose assets are administered by a court appointed trustee for the purpose of redistribution to the debtors creditors.
Bankruptcy
The legal process by which a debtor who owes more than their assets has these assets transferred to a court appointed administrator.
Capital
The amount you borrow to help buy your home.
Completion
The completion date is the date your solicitor transfers the money from your lender to the vendors solicitor or, in the case of a remortgage the date the new lenders funds are transferred to your existing lender to repay your existing mortgage.
Contract
A legally binding agreement, either oral or written, to do or not do something.
Conveyancing
The process surrounding the transfer of property between a buyer and seller, typically carried out by a licensed conveyancer such as a solicitor.
Conveyance Fee
The charge paid - usually to a solicitor for transferring property ownership.
Credit Check
The process where a check is made on the credit history of a mortgage applicant - see about
Credit History
A history of a person's debts. Checking a credit history allows a lender to make an assessment as to whether a prospective client will maintain their mortgage repayments.
Credit Rating / Score
The procedure by which a lender allocates a 'score' based on the information held on the credit file and the lenders application - different lenders use different formats for credit scoring - not all mortgage lenders credit score and they may use other factors and criteria when determining to lend
Credit Reference Agency
A company or organisation that stores financial and public records dealing with the payment history on a prospective borrower, credit reference agencies hold you credit file.
Credit Report
A report prepared by a Credit Reference Agency which details the credit history of an individual - the credit report will be used by a lender to help assess the application of an individual.
Daily Interest Mortgage
A mortgage in which interest is calculated daily.
Debt
An amount owed by one person or party to another.
Debt Consolidation
A procedure whereby a number of loans, each with individual interest rates are repaid with another loan - consolidated into one loan with one interest rate.
Default
The failure to keep up with repayments on a credit agreement (such as a mortgage) - see what is bad credit.
Deposit
A deposit usually refers to the amount of money a borrower pays towards the property purchase.
Depreciation
The decline or reduction of a properties value due to market conditions.
Discharge Fee
The fee charged by lenders at the end of a mortgage term to cover the administration costs of transferring the property ownership documents, also known as a deeds release fee.
Discharged Bankrupt
A bankrupt can be relieved of the status (of being Bankrupt) by a court of residual liability, usually after a certain number of years. The former bankrupt assumes the status of 'discharged bankrupt' and is eligible to obtain credit again.
Discounted mortgage
These mortgages have a discounted rate of interest for a set period, after which the rate will increase.
Discount Period
With a discounted rate mortgage, the discount period is the length of time (usually in years) the discounted rate will apply.
Early Repayment Charge
A charge you may have to pay if you break off a mortgage deal early. Usually applies to special deals such as fixed or discounted rates and usually ends at the end of the special term.
Equity
The amount of the property, in monetary terms, that is not taken up by a mortgage or loan secured on a property.
Eviction
The legal expulsion of an occupant from a property.
Fixed Rate Mortgage
An interest rate that is fixed (i.e. it doesn't move up or down) for a set period of time. A fixed rate mortgage can be good for budgeting purposes as your monthly mortgage payment will not change for a set number of years.
Freehold
A situation where the owner owns both the property and the land it sits on perpetually.
Guarantor
A person, other than the borrower, who guarantees to meet the mortgage payments in the event the borrower defaults.
Interest
The charge made by lenders when you borrow their money.
Interest Rate
The figure that determines how much interest you pay.
Interest-only mortgage servicing
A mortgage where you only pay the interest charges (interest only) of the loan each month. This means you are not reducing the loan amount (or capital) itself, and this will need to be repaid in some other way.
Joint Income
The total income of two borrowers in a joint mortgage.
Leasehold
A type of ownership whereby a person owns a property and the land it sits on, for a limited period of time.
Loan to value
The percentage of money you want to borrow compared to the cost of the property.
Mortgage
A loan which is secured against your property.
Mortgagor
The borrower in a mortgage.
Negative Equity
Where a mortgage and other loans held on a property is more than the property value.
Open Market Value
The value of a property based on current market values.
Principle
The principle loan or capital.
Refinance
The process of changing your mortgage for a different one (re-mortgage), without moving home.
Repossession
The Legal process by which a defaulting borrower is deprived of their interest in a mortgaged property, typically involving a forced sale of the property at a property auction.
Stamp duty
A tax which home buyers must pay on properties valued above a government set figure.
Standard Variable Rate
A standard variable rate of interest at the lender's normal mortgage rate - i.e. without any discounts or deals.
Secured Loan
A loan that is secured on your home - also called a 'second charge' or 'second mortgage'.
Survey
A report on the condition of the property you are planning to buy.
Term
The period of time over which the mortgage must be repaid.
Title
The document that confirms the right of possession to an area of land or property.
Tracker mortgage
A tracker mortgage is a mortgage with an interest rate that is usually linked to a particular rate that is set independently from the lender and moves up
or down with it.
Unencumbered
A property that has no mortgages or loans secured on it.
Valuation
An inspection, for the benefit of your lender, of the home you hope to buy or re mortgage. This is to make sure they are not lending more than the property is worth and that the property is suitable security for the mortgage, but this will not tell you if it is a good or bad buy.
Valuation Fee
The fee charged to cover the cost of the lenders valuation, typically paid by the banks except for HDB Flat Loans.
Banks Home Loan Rates
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News Updates -
Property Regulations Summary
US Fed hike will hit Singapore home loan customers
3 Months Singapore Interbank Offered Rate (Sibor) which are pegged the benchmark rate to most residential property loans , are expected to double by the end of 2017. The increase is in line with the expected rate hikes by the United States Federal Reserve this year.
Not only will consumers see their mortgages rise, companies will also find it harder to service their debts, in the midst of a slower economy with a deteriorating job market.
3 Month Sibor hovered at 0.942 per cent, compared with 0.940 per cent a week earlier. Economists expect the benchmark to rise to between 1.45 and 1.85 per cent by the end of this year.
3 Month Swap offer rate (Sor), a benchmark for commercial loans, was at 0.907 per cent on Wednesday, up from 0.890 per cent a week ago.
CIMB economist Song Seng Wun added that uncertainty towards the US economy, and doubts in the resilience of US consumer spending also contributed to the easing.
Going forward, the increase in Sibor is likely to cause a strain to borrowers. “The cost side for consumers is going up, as they feel the impact of the rise in interest rates for their mortgages, especially now with the rise in resident jobless rate and weak consumer sentiment on economic growth,”
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