Remortgages
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Testimonials
“We are extremely satisfied with the level of service and professionalism combined with a friendly attitude of all the staff we spoke to, and would like to thank everyone at Harrington Brooks very much.”
Mr and Mrs B, Liverpool
“We were really pleased with the efficient way that Harrington Brooks handled our enquiry and by the speed in which our mortgage was finalised.”
Mr and Mrs S, Birmingham
“I found the staff at Harrington Brooks were all very polite, helpful and understanding. I couldn’t fault the level of service we received from start to finish.”
Mr J, Warrington
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Glossary - Debt Consolidation
APR
.This stands for Annualised Percentage Rate. It is the best way to compare loan quotations.
When you take out a loan, the number of repayments you must make, and the exact date they must be paid by, will be clearly stated in your loan agreement. As these details are defined precisely, the annual rate of interest over the period of the loan can be calculated exactly and must be shown on advertisements by law. All arrangement fees and any other costs must be included in the calculation.
Charging Order
A creditor can apply to a court to turn an unsecured debt on which you have defaulted, into a secured debt.
Insolvency Practitioner
An accountant or solicitor authorised either by the Secretary of State for Trade and Industry or a different professional body, who is a specialist in insolvency.
Individual Voluntary Arrangement
Debtors negotiate with their creditors to repay their debt over about 60 months. The remaining debt might be written off.
Loan-to-value
The proportion of the mortgage borrowed to the value of the property.
Non-status borrower
The borrower may have a bad credit rating, and struggles to find finance elsewhere.
Second charge mortgage
A different name for a second mortgage or a secured loan.
Secured loan
Borrowers receive these loans by pledging an asset such as property as collateral for the loan.
Total charge for credit
This charge includes interest and other charges that are payable under the credit agreement and linked transactions.
Glossary - Remortgages
Adverse Credit
Those individuals with a poor credit history fall into this category. Adverse credit may include CCJ's, mortgage arrears, bankruptcy, IVA's or the repossession of a home.
CCJ (County Court Judgement)
The County Court issues CCJ's to individuals who need to repay a debt. CCJ's will show up on a Credit Report.
Equity
This is the value of your home, minus the amounts you owe on secured loans and mortgages.
Arrangement Fee
Some lenders may charge an arrangement fee. This is sometimes known as the booking fee. It is the charge that covers administration and reserves funds for fixed, tracker and/or discounted rate mortgages. Lenders usually allow this to be added to the mortgage loan.
Early Repayment Charge
This charge may be payable on certain discounted or fixed interest rate loans. It only applies if you redeem or part redeem the loan within the specified early repayment charger period.
Mortgage Deed
A mortgage deed is the legal document confirming that you have a mortgage on your home or property.
APR (Annual Percentage Rate)
This stands for Annualised Percentage Rate. It is the best way to compare loan quotations.
When you take out a loan, the number of repayments you must make, and the exact date they must be paid by, will be clearly stated in your loan agreement. As these details are defined precisely, the annual rate of interest over the period of the loan can be calculated exactly and must be shown on advertisements by law. All arrangement fees and any other costs must be included in the calculation.
Discounted rate remortgage
A lower variable interest rate charged on a mortgage for a set period at the beginning of the mortgage term. The rate and monthly repayment will fluctuate depending on the variable base rate changes.
Interest only remortgages
The borrower pays only the interest on the mortgage debt each month without repaying any capital. Borrowers are required to repay the full sum owing on the mortgage at the end of the mortgage term.
Negative Equity
This happens when the amount owed on a mortgage exceeds the value of the property.
Completion
This is also known as 'drawdown', which is the start of the mortgage. It is the point at which your new mortgage arrangements begin.
Glossary - Secured Loans
Secured Debt
A secured debt is one that is backed by collateral such as a property or a car.
Secured Loan
Such loans are secured against an asset such as a property or a vehicle and the borrower could lose the asset if they do not keep up with the repayments.
Unsecured Debt
This debt is not secured against any asset
Unsecured Loan
These loans are more risky for the lender than secured loans as they are not secured on an asset, therefore the interest rate can be higher than that of a secured loan.
Term
The period over which you pay off your loan or mortgage.
Loan
A money advance, given over a specified period that requires regular repayments.
Personal Loan
Individuals take out personal loans that have fixed interest rates and a number of repayments. Lenders use these loans for anything they see fit.
Security Address
Secured loan providers need a security address to guarantee a secured loan.
Early Repayment Charge
Early repayment charges, also sometimes known as a settlement charge, are applicable if a loan or a mortgage is repaid early.
Joint Loan Agreement
More than one person shares a single loan agreement.
Joint Liability
Both parties are liable for a portion of the relevant loan/mortgage.
Security Address
Your financial institution recorded this particular address for your secured loan.
Base rate
The lowest rate at which a lender will charge you interest. The Bank of England's Monetary Committee sets the rate.
Interest rate
The percentage rate at which interest is charged on a loan, or paid out on savings. The rate will vary according to the base rate and the type of loan or savings plan.
APR
This stands for Annualised Percentage Rate. It is the best way to compare loan quotations.
When you take out a loan, the number of repayments you must make, and the exact date they must be paid by, will be clearly stated in your loan agreement. As these details are defined precisely, the annual rate of interest over the period of the loan can be calculated exactly and must be shown on advertisements by law. All arrangement fees and any other costs must be included in the calculation.
Arrears
Being unable to make the full payments will cause you to fall behind on your credit repayments.
LTV
The loan to value ratio is the size of your loan as a percentage of the property's price that your loan is based on.
Payment Protection Insurance
This is a type of insurance that could cover your payments on the secured loan should you be unable to work due to unemployment, accident, injury, sickness and sometimes even death.
DTI
The Debt to Income ratio is a calculation used to work out whether your income and expenditure leaves enough money spare to pay the new loan repayments.
Glossary - Equity Release
Annuity
An investment that converts a lump sum into income that is taxed.
Arrangement fee
This is a commitment or administration fee that payable to the lender to reserve the mortgage funds.
Equity release
Equity releases borrow against the value of a property to give you a regular income or a lump sum.
Home income plan
Such loans pay a cash lump sum with which you buy an annuity to give you a monthly income. These incomes are usually fixed and part of the income is used to pay the interest on the loan.
Home reversion
A type of equity release scheme - you sell all or part of your home to a scheme provider. This gives you a regular income, a cash lump sum or both, and you continue to live in your home for as long as you wish.
Lifetime mortgage
A type of equity release scheme - a loan secured on your home, which is repaid by selling your home when you die or go into long-term care.
Mortgage
A loan secured on property.
Negative equity
The amount you owe the lender exceeds the value of your home.
Roll-up mortgage
Interest to such mortgages is added each month or year.
Secured
If you do not repay your loan, the lender can sell your home to get its money back.
Shared appreciation mortgage
The lender takes a share in any increase in the value of your home when it is sold and forgoes some or all interest on the loan.
