Daily Interest
Interest on the homeloan is calculated and applied on a daily rather than a monthly or yearly basis. Can lead to big savings.
Deadbolt Lock
Locks that require a key to open from the outside and a turn button from the inside.
Debt
Money owed to a lender.
Debt to Income Ratio
A ratio used by lending institutions to determine whether a person is qualified for a mortgage. Debt-to-income is the total amount of debt, including credit cards and other loans, divided by total gross monthly income.
Decreasing Term Assurance
A life insurance policy that pays out a lump sum in the event of death. The amount paid out can be calculated so that it fall in line with your outstanding mortgage debt – meaning that over time the borrowers premiums also fall. This type of policy is well suited to providing cover on a repayment mortgage.
Deed of Covenant
This is a document which confirms that the buyer of a property will comply with the rules and conditions affecting the property which can be found in the Title Deed or Lease.
Deeds
These are the documents which contain all the information about a property such as the owner and the rules affecting the property. These are often held by the mortgage lender to ensure they can take possession of the property should you default on the repayments. Take note of the deed number to speed up your solicitor or conveyancer when buying or selling the property as it can take a lender several weeks to find the correct one.
Deeds Release Fee
When you are selling the house, your solicitor will need to inspect the deeds. You will be charged a fee for this.
Deferred Interest Mortgage
Interest is not paid during the deferral period. When the period is over, the accumulated interest is added to the original loan. Some lenders add this interest to the total of your loan to give a new loan figure and new interest payments. Others calculate your interest payments on the original loan as normal and then spread the repayment of the deferred interest over a set period of time.
Delinquency
Being late with loan payments.
Delinquent Mortgage
A mortgage that involves a borrower who is behind onpayments. If the borrower cannot bring the payments up to date within a specified number of days, the lender may begin foreclosure proceedings.
Dependants
Person(s) who depends on another for financial support.
Detached
Refers to a property which is not attached to another on either side and is therefore free standing.
Direct Debits
A payment made from your account automatically to pay bills etc, usually amounts that vary.
Direct Lenders
Provide financial services over the telephone and through the internet. Lower overheads resulting from a lack of high street premises and centrally streamlined processes mean that the overall costs are much lower and part of this saving is used to deliver cheaper products.
Disability Insurance
An insurance policy which covers an individual's ability to produce income.
Discharge
Paying of the remainder of a mortgage.
Discharge Fee
Covers the administration costs of transferring the property ownership documents from the mortgage lender to the borrower.
Discount Period
The time at the beginning of a mortgage life span when you are offered reduced repayments. Can be useful to help you overcome the often significant outlay involved with buying a property.
Discounted Rate Mortgage
This is a variable mortgage that is discounted from a Lender's SVR by a set percentage within a set period. There are often early repayment charges applicable if the loan is repaid within the discounted period.
Discounted Tracker Rate Mortgage
This is a variable mortgage that is discounted from the Bank of England's Base Rate by a set percentage within a set period. There are often early repayment charges applicable if the loan is repaid within the discounted period.
Distressed Property
Property that is in poor physical or financial condition.
Document Needs List
A list of documents a lender requires when a potential submits a loan application. The required documents range from paycheck stubs to credit card statements.
Drawdown Date
The date when the loan should be made.
Due Dilligence
This is a process that will be undertaken by a mortgage lender to assure themselves that the risk of lending you the substantial amount of money required to purchase a house is minimised. Involves checking your personal details/ status and that of the property you wish to buy. The term is used in other industries to, to indicate a period of research, or checks to ensure the suitability of an undertaking of some sort.
Due on Sale Clause
Standard language in a mortgage which states that the loan must be paid when a house is sold.