Understanding the terminology used in the home buying and refinancing process is not always easy. There are many mortgage-related words and phrases that may cause confusion.
Our Glossary provides a comprehensive list of mortgage terminology to help you.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
H
higher lending charge
- a charge made by some lenders to those who wish to borrow a high percentage of the value of the property – usually 75% to 90%. All or part of this charge may be used by the lender to buy an insurance policy to protect themselves in the event of the property being taken into possession and sold for less than the outstanding debt. Although the lender uses part or all of the money paid by the borrower to purchase this insurance, the insurance only protects the lender and not the borrower.
holiday home
- a property which will not be your main address or place of residence.
HomeBuy Scheme
- is the name given to a type of equity loan which forms part of the government's low-cost home-ownership (LCHO) programme. From April 2006 three HomeBuy schemes will operate:
Social HomeBuy - will enable social tenants to buy a share in the property which they currently live in (similar to the right-to-buy scheme).
New-build HomeBuy - will enable people to buy a share in a newly-built property; and
Open-market HomeBuy - will enable people to buy a property on the open market with the help of an equity loan combined with a conventional mortgage. The equity loan is divided into two halves: half is provided by the government and half by the lender which also gives the conventional mortgage. To give an example, a person who wishes to buy a property which is worth £200,000 may raise a 75% conventional mortgage from a lender for £150,000, then obtain a 12.5% equity loan from the same lender (worth £25,000) and a 12.5% equity loan from the government (also worth £25,000).
home improvements
- works carried out to improve your home. Mortgage interest relief used to be given on loans for home improvements in the same way as for house purchase. Loans taken out before its abolition still receive this relief but this is lost if you move lender.
home information pack (HIP)
- Under the provisions of the Housing Act 2004 a Home Information Pack (HIP), sometimes called a Seller's Pack, will have to be provided before a property in England and Wales can be put on the open market for sale with vacant possession. The pack will be a set of documents about the property: an Energy Performance Certificate, local authority searches, title documents, guarantees etc.
homebuyer's valuation fee
- the fee paid for a fuller inspection of the property you are thinking of buying which is more thorough than the normal lender's valuation. This is frequently referred to as an Option 2 valuation fee.
house or flat buyer's report
- a more thorough survey than the simple valuation carried out on the property by the lender (although you still have to pay for it). If your lender does not offer this as an alternative to the basic valuation, you can negotiate with the surveyor carrying out the valuation for the fuller inspection and this may cost you less than a separate inspection.
Housing Association
- a society, body of trustees or company which is established for the purposes of providing, building, improving or managing, or facilitating, or encouraging the construction or improvement of, housing accommodation. It does not trade for profit. Anyone wanting help with housing puts his or her name down on the housing association list which acts in the same manner as council house lists. See shared ownership.
Houses in Multiple Occupations (HMOs)
- a house or flat let to 3 or more tenants who form 2 or more households (Housing Act 2004) Properties which comprise 3 or more storeys; and are occupied by 5 or more persons; and are occupied by persons living in 2 or more households.
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