Fee
The amount charged by a lender or broker for arranging a mortgage.
Also See: Arrangement Fee, Booking Fee, Conveyancing Fee, Land Registry Fees, and Valuation Fee.
First Charge
If your property is collateral for more than one property and the borrower defaults on payments, the lender with a first charge has the option to repossess the home.
First Mortgage
The original loan taken out to purchase a home.
First Time Buyer
A person who does not already own a property and is therefore not part of a chain.
Fixed Rate Mortgage
This is a mortgage that is charged at a fixed rate within a set period. There are often early repayment charges applicable if the loan is repaid within the fixed period.
Flexible Mortgage
As its name suggests, this is a type of mortgage that offers considerably more flexibility than traditional mortgages. Although specific details vary between Lenders.
The core features of Flexible mortgages are:
- daily or monthly capital rest
- ability to make overpayments at any point of the loan term without an early repayment charge.
In addition, many Flexible mortgages allow borrowers to:
- defer payment by taking payment holidays
- drawback overpayments
- drawdown further advances
- underpay without penalty (often only to the amount of any previous overpayments)
Flood Plain
Flat, flood-prone areas located along waterways.
Flying Freehold
A flying freehold occurs when part of a freehold property overhangs part of a different freehold property or land and is usually formed when a property is split into two or more freeholds.
For Sale by Private Treaty
The sale of property by private treaty is the most common method employed by estate agents and involves preparing descriptive details of the property and quoting a definitive asking price. Details can then be viewed by potential buyers and viewings arranged.
Forbearance
A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.
Foreign Currency Mortgage
It is possible to get a mortgage for your home in the UK in a mortgage denominated in a foreign currency. It sometimes gives you the opportunity to borrow money at a lower rate of interest than is possible in the UK. You do this by choosing a currency whose country has lower interest rates than we have here. Lower interest rates should mean lower repayments of both capital and interest or a shorter mortgage term. The mortgage does not have to be in any single currency. There are lenders who will allow you to spread your mortgage across a range of different currencies. This could be seen as spreading the risk
Fraudulent
Involving criminal deception or dishonesty.
Freehold
The buyer of a Freehold property owns both the property and the land it stands on indefinitely. See also Leasehold.
Freeholder
Owner of the freehold on the property.
Full Status
This term describes borrowers with a good credit history who are not self-certifying their income.
Full Status Mortgage
A full status mortgage is for people who wish to make a lender aware of any previous arrears or debt problems they may have had. If they do not make the lender aware of these facts and they are latetr discovered, his could lead to all sorts of problems and the borrower could even be forced to sell the home. If you have a bad credit record some lenders will regard lending you money a high-risk activity. Many will not lend you money at all and when you can get a loan, you will undoubtedly have to pay a higher rate of interest than you would otherwise.
Full with Profit Endowment
The most expensive endowment plan with the highest guaranteed returns. This type of endowment guarantees an annual growth and also to pay off the full loan at maturity which is the cause of the added expense. It also has built in life cover. The future growth of your investment is assumed to be at a certain rate, which determines the level of your premiums. The portion of your premium that is being invested is pooled with the premiums of other investors. Annual bonuses are added to the maturity value each year and are dependent on the performance of the investment fund. There is a possibility that the bonuses will take the maturity value above the level required to pay back the loan. This would result in a tax-free cash surplus.
Further Advance
You can sometimes have the facility to borrow further funds once you have been paying your mortgage for a set period of time, especially with a flexible mortgage. A fee is charged by your lender to cover the cost of assessing the merits of your application.
Further Advance Legal Fee
A fee that is normally charged when you apply for a further advance of money on your mortgage. This covers the necessary administration to ensure that the lender's legal charge over the property is maintained when further money is lent.