Glossary of Terms

Someone appointed to look after or manage property on behalf of the owner, whose responsibilities may include collecting rent and arranging for maintenance of the property.

Often used to refer to a dwelling house and any buildings belonging to it. It may also include any grounds or garden which forms part of the property.

A deed by which a borrower charges his property as security for the repayment of a loan.

The mortgage loan.

Mortgage indemnity insurance provides additional security for a mortgage lender because it supports a mortgage advance which would normally exceed its lending limits. The insurance usually covers advances which exceed 70% or more of the valuation of the property.
The policy protects the lender (NOT the borrower) if the borrower falls significantly behind with their mortgage payments and the lender has to sell the property to repay the outstanding mortgage. If the property is sold for less than the amount of the outstanding mortgage, the lender can claim on the mortgage indemnity policy to recover some of the loss.
The policy is a contract between the indemnity company and the lender, although the premium for the insurance is paid by the borrower up front or debited to the mortgage account. The only benefit to the borrower is the ability to borrow more money than would otherwise be allowed.

Instructions sent to a lawyer by a lender which detail how the lawyer should act in connection with obtaining the mortgage.

The formal offer of mortgage issued by the mortgage lender to the borrower. It contains details of the amount of loan, the term over which it is repayable and the terms and conditions of the loan.

A deed by which a borrower charges a life policy as security for the repayment of a loan. It is also known as an assignment.

A lender who advances money which is secured by a mortgage.

A lender who has taken possession of a property mortgaged to it, usually because the borrower has fallen seriously into arrears with repayments. The lender will sell the property to repay the outstanding debt.

A life policy used in connection with a repayment mortgage which pays out the sum assured on death of the life assured during the term of the policy.

A proportion of the mortgage retained by the mortgage lender when essential repair work is required to the property. The retention is released when the work required has been completed in accordance with the terms of the mortgage offer.

A borrower who provides a lender with a mortgage on his property as security for a loan.