Online Quotations from Bluefish Mortgages

For one of our qualified advisors to contact you and provide a quotation, please fill in the following form. Any advice is TOTALLY FREE and there is absolutely NO OBLIGATION.

a

a b c d e f h i l m n o p r s t u v
Accident, Sickness and Unemployment Cover (ASU)

Cover provided for an additional premium which pays your monthly mortgage payment and potentially additional living expenses for up to 12 or 24 months if you become ill, unemployed or have an accident. Separate and individual cover to suit your needs can be arranged i.e. Unemployment Cover may not be suitable for the self-employed.

Added to Loan

Normally applicable to the fees which the borrower(s) are required to pay when taking out a mortgage. The costs may include indemnity fees, arrangement fees and/or administration fees such as valuation costs.

Administration Fee

Mortgage lenders can charge an administration fee to cover the cost of administration and providing the mortgage loan to the borrower. This fee is non refundable and can include the cost of the valuation.

Advance

Refers to the funds the lender provides to you on completion of the mortgage. The funds are ‘advanced’ to the borrower in expectation of them being repaid through the term of the mortgage.

Agreement in Principle (a.k.a Decision in Principle)

This is not a formal offer of mortgage but can provide an indication of the likely outcome of a mortgage application prior to an application being made and/or what further information is required. A credit check may or may not be completed with a credit reference agency can effect the decision to lend. Normally an assessment of your ability to repay the loan amount requested and the property to be offered as security will be considered. Once you have been given an agreement in principle further checks are made to validate the information you have provided including the valuation being completed to ensure that the property you have chosen or currently own is suitable for to lent against by the selected lender. Once completed, a formal offer of mortgage is made.

APR

Annual percentage rate of the total charge for credit: this is the standard way (laid down by the Financial Services Authority Mortgage Conduct of Business rules) of working out the true interest rate. By law, the APR has to be shown by all lenders alongside their quoted interest rates for each mortgage term, to enable potential borrowers to make comparisons between offers made by different lenders.

Arrangement Fee

See ‘Product Fee’.

Arrears

Your mortgage payments are scheduled to be paid on the same date each month, e.g. 1st and for an advised amount. This amount could vary if you are on a variable rate or could be fixed for a period if you are on a fixed rate. It is important that you keep up to date with the mortgage payments. If you are late in paying, pay an insufficient amount or nothing at all you will incur arrears with your mortgage lender. If you have arrears with your current lender it can make it difficult to transfer your mortgage to a new lender. If your arrears continue then your lender can apply to the courts to repossess your property for sale to repay the mortgage and the arrears owed.

b

a b c d e f h i l m n o p r s t u v
Bank of England Base Rate

The base rate set by the Bank of England and announced monthly. This rate is used by many lenders to set their own rates which in turn effects your payments on credit and/or mortgages.

Bankrupt

An individual debtor (can be a person, company or corporation) whose assets are administered by a court-appointed trustee for the purpose of redistribution to the debtor’s creditors.

Bankruptcy

The legal process by which a debtor, who owes more than their assets, has these assets transferred to a court appointed administrator.

Basic Valuation

See ‘Valuation’.

Bridging Loan

A short term loan which is provided by a lender to allow for the purchase of a new home if you are required to complete on the purchase before selling your existing property.

Broker

An intermediary between parties who brings them together i.e. a ‘middleman’.

Broker Fee

An amount charged by the broker for arranging the mortgage on your behalf and acting as the ‘middleman’.

Buildings Insurance

Taken from a provider to insure your property against damage from hazards such as fire, flood and subsidence. Your mortgage lender will also be noted on the policy as it is cover for the security of their loan, your property. The rebuild cost is the amount deemed sufficient to cover the cost of rebuilding the property and may be different to the property’s ‘market value’.

Buy To Let

A mortgage used to buy property which is to be used solely for the purposes of renting out to a third party. These are currently not regulated by The Financial Services Authority but as with a normal residential mortgage best advice and best practice should still be sought and provided.

c

a b c d e f h i l m n o p r s t u v
Cap and Collar

The cap is the maximum rate of interest that can be charged by the lender during the specified period, the collar is the minimum interest rate that can be charged, normally for the same specified period.

Capital

An amount of money.

Capital Repayment (or ‘Capital and Interest’ or just ‘Repayment’)

There are 2 ways of repaying a mortgage - capital repayment or interest only. With a capital repayment mortgage, the capital and interest elements of the loan are paid off with each monthly installment so that the balance reduces over time. At the end of the mortgage term the balance will be nil. ‘Capital & Interest’ or ‘Repayment’ are both terms for Capital Repayment.

Capped Rate Mortgage

A loan where a maximum rate of interest is set at the start of the mortgage. During the capped rate period the interest rate can fall below the capped rate but will never rise above it, the ‘cap’.

Cash Back

An amount provided to you by the lender on completion of the mortgage for taking the mortgage. The amount you receive can be repayable during a specified time period if the mortgage is repaid early, you should always check the terms and conditions when receiving a cash back amount as this may effect your decision making in the future.

CAT (Charges Access Terms)

A mortgage that complies with specific guidelines laid down by the government in terms of the charges applied, the flexibility of the mortgage and the terms applicable to it

CHAPS

This means Clearing House Automated Payment System which is used for a telepgraphic transfer of the funds from the lender to the conveyancer on completion of the mortgage.

Charge Certificate

If the property is registered with the HM Land Registry, this certificate will prove or transfer ownership of land. The Land Registry issues a Charge Certificate to the mortgagee of the property who has registered title. If there is no mortgage on the property, the Land Registry issues a Land Certificate to the registered proprietor. The Charge Certificate contains three parts:

• charges register
• property register, and
• proprietorship register.

It will have details of restrictions, mortgages and other interests in the property.

Clear Title

A legal term that refers to the clear ownership of a property.

Commission

A fee paid to the broker for negotiating the contract between the mortgagee and borrower. This can also refer to a fee levied by the broker to the borrower for negotiating the mortgage on their behalf.

Common Areas

Sections of land or buildings, such as gardens, hallways, recreational facilities and parking areas, where more than one resident shares access.

Company Representative

A person with authority to deal for and on behalf of an organization.

Comparative Search

A search that looks at the actual sale values of similar properties in the same area as your property. This search is normally carried out by an estate agent or other third party and should give an indicative sale price/estimated value for your property.

Completion

The day on which a property becomes legally yours or your remortgage application ‘completes’ and funds are transferred.

Completion Fee

See ‘Product Fee’.

Compound Interest

An interest payment on both capital and on previously accrued interest. For example, £100 borrowed for 5 years at 5% p.a. would become £105 after 1 year, £110.25 after 2 years and £115.76 after 3 years, and so on.

Compounding

The process of adding interest to both the capital borrowed and any previously accrued interest.

Concrete Construction

A property built using a type of concrete as the main material. Some lenders may refuse to lend, or charge higher rates of interest, on properties built using unconventional materials or techniques due to the effect on their saleability.

Contents Insurance

Protection for items in your home, including furniture and personal possessions - in case they're stolen, lost or damaged. This can be arranged separately to your Buildings Insurance.

Contract

Legally binding agreement, either oral or written, to do or not do something between two parties.

Converted Flat

A flat or apartment that has been created by the subdivision of a larger property.

Conveyance

The legal document which transfers ownership of unregistered freehold land.

Conveyancer

A legal practitioner who deals with the conveyancing of land.

Conveyancing

The legal process involved when buying or selling property, normally completed by a solicitor or licensed conveyancer. Different lenders have different criteria for the acceptability of the solicitors or conveyancer, you advisor will be able to provide mortgage information.

Conveyancing Fee

The charge made by a solicitor or conveyancer for undertaking the legal procedures necessary for the transfer of ownership of a property.

County Court Judgment (CCJ)

A ruling for bad debt issued by a County Court or higher court. The judgment will be recorded and the record will show up during any credit checks and may count against you in a mortgage or other credit application.

Covenant

A clause in a mortgage contract or in a contract for the sale of a property that obligates or otherwise restricts one of the parties (buyer/lender or buyer/seller). The contract should detail any penalties, including repossession, which will be incurred if the covenant is broken.

Credit

An undertaking or agreement under which one party (the borrower) receives money or property on condition that they repay the other party (the lender) at a later date.

Credit Check

The procedure by which a check is made on the credit history of a mortgage applicant, usually conducted by one of the large dedicated credit check agencies on behalf of the prospective lender. The check will include items such as credit card repayments, outstanding debts, arrears and County Court Judgments.

Credit History

A history of an individual's existing and historic credit e.g. loans, credit cards, Mortgage. Checking a credit history helps a lender to assess the likelihood that a prospective borrower will maintain their mortgage repayments.

Credit Rating

An assessment of a person's likelihood of keeping up - or otherwise - on the repayments on their loan. A credit rating is usually based on a person's credit history.

Credit Reference Agency

A company that collects and stores financial and public records dealing with the payment history of a prospective borrower. Most lenders will employ a Credit Reference Agency to check your payment records as part of their assessment of your application.

Credit Report

A report prepared by a Credit Reference Agency which details the credit history of an individual. The credit report will be used by a lender to help assess the applications of prospective borrowers.

Credit Scoring

Lenders will assess the suitability of your application using a technique known as credit scoring.

Current Account Mortgage

This is still a fairly new type of mortgage but it is becoming more common. Essentially, you have a mortgage account and a current account. Any positive balance in the current account is deducted from the mortgage balance, thus reducing the amount you owe. This is called offsetting and will reduce the interest charged on your mortgage.

d

a b c d e f h i l m n o p r s t u v
Daily interest

If interest is calculated daily then any payments made to your mortgage that reduce the balance immediately reduce the amount of interest you pay. If you have a mortgage which calculates interest monthly or annually you will pay more interest over the term of your mortgage than you would with daily interest.

Decreasing Term Assurance

A life assurance policy should repay your mortgage if you die during the term. The amount repaid on this policy reduces over time.

e

a b c d e f h i l m n o p r s t u v
Early Repayment Charge

A charge payable on some mortgages to cover administration costs in the event of a loan being repaid before the due date or expiry of an initial benefit rate e.g. a fixed rate.

Endowment Assurance

A life assurance savings scheme that pays out a lump sum at the end of an agreed period. If the Endowment is linked to an interest only mortgage, the lump sum from the endowment policy is designed to pay off the outstanding loan at the end of the mortgage term.

Endowment Mortgage

This is a type of interest only mortgage. Only interest is paid throughout the term so the balance never changes OR REDUCES. The mortgage is designed to be repaid at the end of the term through the separate endowment policy.

Equity

The amount of money you have tied up in your home. This is calculated as the difference between the value of your home and any money you owe on it. For example, a house valued at £100,000 - a mortgage of £50,000 = £50,000 equity.

Equity Release

A way of releasing extra money by borrowing against the equity in your home. Bluefish Mortgages Ltd does not offer or arrange Equity Release products.

f

a b c d e f h i l m n o p r s t u v
First Time Buyer

A customer taking out their first mortgage, normally on a property for them to live in themselves.

Fixed Rate

A mortgage rate where the interest rate is agreed at the outset and will not change during the term of the fixed rate.

Freehold

A term which means that you own the property and the land it is situated on, you do not ‘lease’ it from a third party.

Further Advance

A secured loan to release equity in your house for any purpose.

h

a b c d e f h i l m n o p r s t u v
Higher Lending Charge

The Higher Lending Charge (HLC) is a charge due on a mortgage with a Loan To Value (LTV) greater than a % prescribed by the lender. Different lenders have different criteria for when the ‘HLC’ is payable. Some lenders do not charge a ‘HLC’ at all. Normally the premium will be charged on the amount of the loan above 75% LTV. The scale charges vary between lenders, your advisor will be able to provide more information.

Homebuyers Report

See ‘Survey’.

i

a b c d e f h i l m n o p r s t u v
Individual Savings Account (ISA) Mortgage

An interest only mortgage linked to an Individual Savings Account fund, which is designed to pay off the loan at the end of the period.

Interest Charges

The charges that lenders make on a loan, calculated as a percentage of the amount borrowed.

Interest Only

There are 2 types of mortgage, interest only or capital repayment (see above). With an interest only mortgage the balance of the mortgage stays the same throughout the mortgage term. The balance is to be repaid through other means. Popular ways of repaying the capital borrowed can be the proceeds of a separate investment vehicle e.g. endowment, ISA or sale of the property in the future. If you choose an investment vehicle, the amount will depend on the performance of the investment vehicle. If you choose an interest only mortgage you will be responsible for ensuring that you have sufficient funds available to repay your mortgage at the end of the term. We always recommend obtaining suitable and independent financial advice when you take an interest only mortgage.

l

a b c d e f h i l m n o p r s t u v
Leasehold

A system used mainly in England where you would own the property for a set period before handing back ownership to the freeholder.

Legal Fees (Conveyancing Costs)

The fees charged by a solicitor or other qualified individual to carry out the legal work associated with buying a house.

Level Term Assurance

A life assurance policy which will repay your mortgage if you die during the term. The amount that will be repaid is set as the balance of your mortgage at the start of your loan and doesn't change during the term of your mortgage.

LIBOR

The London Interbank Offered Rate, the rate charged by one bank to another for lending money. Used by many lenders to calculate your interest rate. Normally reset quarterly.

Lifetime Mortgage

A type of equity release product for the over 60s, which allows you to release money by borrowing against the value of your home. There are no monthly repayments, instead the interest is added to the loan and the whole amount is repaid when you die or move into long-term care, usually from the sale of the house. This means more interest will build up than with a conventional mortgage. Bluefish Mortgages Ltd does not offer Lifetime Mortgages.

Loan to Value (LTV

This refers to the amount of the mortgage compared to the value of the house you own or you are considering buying. For example, a £75,000 mortgage on a house worth £100,000 would have an LTV of 75%.

m

a b c d e f h i l m n o p r s t u v
Market Value

The amount your property is deemed to be worth by the market. As ‘the market’ can be fluid, the amount can vary over time, both rising and falling.

MIRAS

This was a government scheme discontinued in April 2001 that allowed you to claim tax relief on the interest you paid on your mortgage.

Mortgage

A loan made against the security of a property.

Mortgage Rate (or Standard Variable Rate or ‘SVR’)

The standard variable interest rate quoted by all mortgage lenders which normally varies with the Bank of England or alternative source base rate change.

n

a b c d e f h i l m n o p r s t u v
Negative Equity

Where a mortgage is greater than the value of the property

o

a b c d e f h i l m n o p r s t u v
Offer of Loan

A formal document approving the mortgage you have applied for and detailing the terms and conditions that will apply.

p

a b c d e f h i l m n o p r s t u v
Payment Break

An option made available by some lenders that allows you to stop making mortgage payments for an agreed or prescribed period of time.

Pension Plan Mortgage

A type of interest only mortgage where the loan is designed to be repaid by a lump sum from a pension plan when you retire. We do not provide pension advice and would direct you to obtaining independent financial advice.

Product Fees (Arrangement Fee or Completion Fee)

Charged by the lender to arrange a loan on certain products. Usually applied to loans where a special interest rate applies e.g. fixed or capped rates.

r

a b c d e f h i l m n o p r s t u v
Rebuild Cost

See Buildings Insurance.

Remortgage

Moving mortgage from one lender to another without moving house. You may wish to increase the mortgage amount to release equity or reduce the mortgage amount by making a lump sum payment to the existing lender to reduce the monthly payment.

Right-to-Buy Mortgages

Mortgages for council or housing association property tenants who qualify to buy their home under the Government's Right-to-Buy scheme.

s

a b c d e f h i l m n o p r s t u v
Sealing Fee

A charge made by the lender for the administration work involved in closing your mortgage account once it is full repaid.

Self build

A type of mortgage for clients looking to build their own new home themselves.

Stamp Duty

A charge levied by the government on house purchases over a set threshold

Standard Variable Mortgage Rate (SVR)

See Mortgage Rate

Structural Survey

See ‘Survey’.

Survey (Homebuyers Report, Structural Survey)

A more thorough and costly evaluation of the condition and value of a property than the Basic Valuation, paid for by the customer.

t

a b c d e f h i l m n o p r s t u v
Term

The length of time you take to repay your mortgage.

u

a b c d e f h i l m n o p r s t u v
Unemployment Cover

See ‘Accident Sickness and Unemployment Cover’.

Unencumbered

Relates to the ownership of the property where no mortgage is held over the property by a mortgagee. In plain terms, a property is owned outright with nothing owing on it to any third party and no other interest exists apart from the registered owner.

v

a b c d e f h i l m n o p r s t u v
Valuation (Basic Valuation)

An independent assessment of the value of a property carried out by an approved surveyor, usually paid for by the customer. The valuation is used by the lender to decide how much they are prepared to lend and if the property is suitable for lending. Normally a copy is only provided to the lender for their assessment, not the client. You may wish to arrange your own valuation or a more detailed assessment, see ‘Survey’.

Variable Rate

This rate can go down as well as up during the course of your mortgage and is normally based on The Bank of England Base Rate or another base rate, e.g. LIBOR.