Wright Mortgage Company Ltd
Registered Address

The Wright Mortgage Company Limited
Newlands House
Station Street
Bingham
Nottingham
NG13 8AQ
Phone Numbers
Telephone: 01949 877676 (9.00 - 5.30 Monday-Friday)  
Fax: 01949 878692
Email Us
Wright Mortgage .co.uk
Home Profile Treating Customers Fairly Contact Details
Mortgages
Protection
General Insurance
Full Financial Planning
Business Protection
Commercial Borrowing
Recruitment
Our Introducers
Sponsorship
Glossary
 

Glossary

APR : APR stands for Annual Percentage Rate. A lender is always required to quote the APR when advertising a loan or borrowing rate. APR is not actually a rate of interest. It is regarded as a rate of charge as it takes into account some but not all costs involved in setting up and administering a loan. An APR’s purpose is to allow the borrower to compare the true cost of borrowing from different lenders.

The lender will usually quote the headline rate and the APR next to it. The headline rate states the rate of interest you pay per month or per year on the mortgage, while the APR is based on the total amount that will be paid over the entire period of the loan. It also takes into account any charges that the borrower has to pay during the loan period.

Top

Base Rate : The UK's core interest rate, set by the Bank of England. The lender's Standard Variable Rate (SVR) is higher than the Base Rate, but is often adjusted by reference to it.

Top

Buildings Insurance : Insurance cover which protects the holder against damage to the property itself (although it can be linked with contents insurance in a combined policy). The amount insured may vary from the purchase price/valuation of the property depending on the type of location of the property. The valuer will usually provide a rebuild cost for insurance purposes.

Top

Buy to Let : The practice of buying a house or flat for investment purposes. Income is provided by the tenants' rent, and capital growth (if any) by the property's increasing resale value.
The value of property can fall as well as rise and past performance is not a guide to future performance.
The Financial Conduct Authority does not regulate most forms of Buy to Let mortgage.

Top

Capital and interest : In the context of mortgages, a capital and interest mortgage is also known as a repayment mortgage. It involves paying all of the interest plus repayment of a little of the capital each month; an interest only mortgage involves only paying off the interest.

Top

Capped Rate : A mortgage which allows your interest rate to climb no higher than a specified level, usually for the first few years of the loan. At the end of the capped rate period the loan will revert back to the lenders Standard Variable Rate and the monthly repayments may increase as a result.

Top

Cashback :A cash amount paid by a mortgage lender to a customer (typically at the beginning of a contract) as an inducement to enter into a mortgage contract with the mortgage lender.

Top

Completion : The final stage of the house-buying process, which comes after exchange of contracts. The sale must proceed after Exchange, but Completion occurs when the property's agreed sale price (less any deposit already paid) safely reaches the seller's bank account.

Top

Compulsories : This is shorthand for compulsory insurances. Some lenders, at least for certain mortgages, insist that you take out their buildings insurance - which needn't necessarily be the most cost effective on the market. Our Mortgage Wizards allow you to select out these products if you wish to (although sometimes of course, the mortgages can be so good that it outweighs the potential disadvantage of taking the compulsory insurance)

Top

Contents Insurance : Insurance cover which protects the personal belongings your home contains. In the case of rented accommodation, the landlord is responsible for insuring those contents which he owns, but not those owned by his tenants.

Top

Conveyancing : Normally carried out by a solicitor or licensed conveyancer on the buyer's behalf, conveyancing includes proving the property is really owned by its seller, making sure that all the loans secured on it are discharged, establishing its legal boundaries and searching local planning information for upcoming developments which could affect the property's value.

Top

Council Tax : A local authority charge which replaced the Community Charge in 1993/94. Generally speaking, the more valuable your property is, the higher your Council Tax bill will be, although the amount for an identical property can vary considerably between different local authorities. In rented or buy to let accommodation, the tenants are usually responsible for the Council tax.

Top

County Court Judgement (CCJ) : If a County Court rules against you for defaulting on a debt, that ruling is listed on your credit record. Having such a judgement listed against you may mean you are turned down for future loans, or be expected to pay a higher rate than other customers. The Scottish equivalent of an English CCJ is a Decree.

CCJ is only listed on a persons credit records for 6 years only.

Top

Cover : In the context of insurance, cover describes the specific risk a given policy protects you against. Life cover protects your family against the financial consequences of your death, buildings cover against damage to your property, and so on.

Top

Credit Reference Agency : When assessing your application, a mortgage lender will study your credit records. These records are held centrally by credit reference agencies, and contain information from many different aspects of your life.

Top

Current Account : A bank account linked to a cheque book and/or debit card. In exchange for instant access and the ability use cheque or debit facilities, most pay little or no interest on the balance they contain.

Top

Deeds : The formal written document which lists exactly who owns a property and enables transfer of a property's ownership from seller to buyer. A mortgage lender will record details of their mortgage on these deeds (which means they can take ownership of the property if you default on the loan payments)

Top

Deposit : In the context of mortgages, the deposit is the initial lump sum payment which the buyer must contribute to the property's total purchase price.

Top

Deposit-based Savings : A method of saving which pays regular, usually variable interest based on the amount invested (instead of relying, for example, on the unpredictable returns from stockmarket investment)
The Financial Service Authority does not regulate deposit accounts

Top

Discounted Rate : A mortgage which has an interest rate below the lender's standard variable rate (SVR), Bank Base Rate or Libor rate, typically for the first few months or years of the loan. The rate payable may move up and down, but the discount on SVR remains constant. At the end of the capped rate period the loan will revert back to the lenders Standard Variable Rate and the monthly repayments may increase as a result.

Top

Diversification : The principle that some investors should spread their risk among many different types of investment. A properly balanced portfolio will contain elements of share, deposit-based and property investments. Fund performance and objective achievement are not guaranteed.

The past performance is not necessarily a guide to future performance. The value of this investment can go down as well as up and you may not get back the full amount invested

Top

Early Repayment Charges : A charge levied by the mortgage lender on the customer in the event that the loan is repaid in full or in part before a date specified in the contract. Fixed-rate, capped-rate, cashback and discount rate mortgages commonly carry early repayment charges that can in some cases persist long after the initial special rate itself has expired. This can make it prohibitively expensive to move to a rival lender in the first few years of the loan.

Top

Employment Status : A term used by lenders to describe potential borrowers' working arrangements. Self-employed applicants are sometimes seen as a greater risk than employees are. But many specialist lenders and mortgages have emerged in recent years designed specially for different types of employment status.

Top

Endowment Mortgage : A mortgage funded by an insurance-based savings plan. The borrower only pays interest during the mortgage term and the savings plan is designed to repay the mortgage at the end of the mortgage term. As the returns payable under the savings plan depend on stock market performance, shortfalls and in some instances overpayments can occur.

Top

Equities : Another name for ordinary shares.

Top

Exchange of Contracts : The terms of a property's purchase become legally binding for both parties when contracts are exchanged. The buyer is then committed to buying, and the seller to selling. As a buyer, you should normally ensure that you are covered by building insurance from this date, because even if the property were damaged badly, you would still have to buy it.

Top

Execution-only : A service which offers no advice, but merely carries out the customer's orders.

Top

Facebook : Please become a fan of Wright Mortgage on facebook Please become a fan of Wright Mortgage on facebook

Fixed Rate : A mortgage which fixes your interest rate at a specified level, typically for the first few years of the loan. At the end of the capped rate period the loan will revert back to the lenders Standard Variable Rate and the monthly repayments may increase as a result.

Top

Flexible Mortgage : A mortgage which allows borrowers to make overpayments when they have spare cash. Other features could include the option to reduce or miss payments altogether when times are tight, and to reborrow any overpayments. Not all flexible mortgages offer all of these features. Often useful for self-employed people whose income varies from one month to the next. The most flexible form of mortgage is a Current Account Mortgage (CAM), which can potentially save you money by linking your current account and mortgage together.

Top

Gross : Before tax.

Top

Growth : A growth strategy is one which seeks to maximise the capital value of your investment without the requirement to generate any minimum level of income. Any income may be reinvested.

Top

Higher Lending Charge : This is an insurance premium that you have to pay for some mortgages, usually when the Loan To Value is higher than a certain figure. It protects the lender to some extent if you default on the mortgage for any reason. It is important to understand that although you have to pay the premium, the lender benefits from any payout, and that if the payout doesn't cover their costs they may seek further money from you. With many mortgages you can add the Higher Lender Charge to the loan, unless this takes your Loan To Value over a certain figure. The insurer may pursue the defaulter for reimbursement of any monies which have been paid out in respect of lenders claim.

Top

Home and Contents Insurance : A joint term, referring to both buildings cover and contents cover. The two policies may or may not be bought from the same insurer, but buying them together can sometimes save money or make life simpler.

Top

IDD or Initial Disclosure Document : This document will give you Key messages about the company - who the firm is, which mortgage and insurance products they offer, any costs and how your adviser is paid, for example a fee from you or commission from the mortgage lender.

Top

Impaired Credit : Impaired credit mortgages are specialist loans for customers whose credit problems disqualify them from using mainstream lenders' standard products. Some lenders specialise in loans like these, which are also known as adverse credit loans.

Top

Independent Mortgage Advisers : Someone who can advise you on mortgage that is right for you, taking your circumstances and the full range of products available into account.To be classes as Independent such a firm have to offer a comprehensive range of mortgage products from across the market for both first and second charge mortgages.

Top

Interest : The premium which a borrower must pay a lender in return for use of the lender's money.

Top

Interest-only Mortgage : Unlike a repayment mortgage, the amount of debt outstanding does not reduce over time. There is no guarantee that the investments chosen will grow sufficiently to repay your loan. Lenders require evidence that a customer will have in place a clear credible repayment strategy and that the repayment strategy has the potential to repay the capital borrowed. Repayment strategies may include deposits or investment product(s), pension(s), periodic repayment of capital from irregular sources of income (e.g. bonuses), the sale of another property or other land or other acceptable methods which meet lending criteria.

Top

ISA Mortgage : A mortgage loan funded by contributions to an Individual Savings Account. ISAs provide tax-free growth, generated mainly by stockmarket investment. The ISA aims to repay the loan's capital at the end of its term, but the interest element must be paid separately as you go along. It's important to remember that past performance is not necessarily a guide to future performance.

The ISA may not be sufficient to repay the loan at the end of the term and does contain an element of risk.

Top

Key Facts Illustration : The pre-contractual disclosure document provided as either the Key Facts Illustration plus (KFI+) or the new European Standardised Information sheet (ESIS) before you make a decision on the mortgage. A KFI plus or ESIS gives you tailored information, based on a particular mortgage and the level of lending you require, which his important document to help you make a decision. This includes associated rates and fees, the overall cost of the mortgage and your monthly payments.

Top Letting Agent : A property agent who can help landlords locate suitable properties for purchase, and who finds tenants to occupy those properties and can manages the rental process which follows.

Top

Loan To Value : This is the amount you want to borrow divided by the purchase price. In other words, it reflects the size of your deposit. Generally, the lower the loan to value, the safer the lender will view the loan.

Top

Local Search : See Search

Top

London Inter-Bank Offered Rate (LIBOR) : The interest rate at which leading banks lend to one another. Sometimes used as an alternative to base rate in setting the benchmark for a tracker mortgage. There are separate LIBOR rates for different periods up to a year but either "1" or "3" months LIBOR is what is normally used in setting mortgage rates.

Top

Money Markets : The wholesale markets in which banks and other financial institutions lend money to one another. Mortgage lenders often borrow money in these markets, particularly for funding fixed rate mortgages.

Top

Mortgage Broker : An agent who shops around for the most suitable mortgage deal on behalf of his clients.

Top

Mortgage Adviser : A firm/ individual with permission for advising on mortgage contracts.

Top

Mortgage Intermediary : A firm with permission for advising on or arranging mortgage contracts.

Top

Net : After tax has been deducted.

Top

Non-Status Loan : Mortgage deals may not be available and lending is subject to individual circumstances and status.

Top

Overpayment : A mortgage repayment bigger than the one needed to meet the loan's minimum requirements. Mortgages that allow these without penalty are often useful for people whose type of employment means that from time to time they receive significant bonuses or other influxes of money.

Top

Payment Holiday : A short break from regular mortgage repayments, sometimes offered with flexible mortgages. This can sometimes be a useful feature for self-employed people or others with irregular income.

Top

Pension Mortgage : A mortgage whose capital repayment is funded by contributions to a personal pension. The generous tax breaks given to pension saving boost contributions by making them gross instead of net of tax. There is an option available to take a lump sum, of up to 25% of the value of the accumulated pension fund. This lump sum aims to repay the loan's capital at the end of the term. The past performance is not necessarily a guide to future performance. Using a pension lump sum in this way may reduce any potential pension benefits.

Top

Premium : In the context of insurance, a premium is the regular sum you pay to keep your cover in force.

Top

Procurement Fee : The total amount paid by the mortgage lender to a mortgage adviser/ intermediary, whether directly or indirectly, in connection with providing applications from customers to enter into mortgage contracts with the mortgage lender.

Top

Regulated Mortgage Contract : In accordance with the Mortgage Credit Directive, it is important for you to understand if the mortgage you buy is regulated by the Financial Conduct Authority (FCA).

In broad terms, a regulated mortgage contract must meet the following conditions at the time it is entered into:

  • the borrower must be an individual or a trustee;
  • the lender must take a first legal charge over property in the UK; and
  • at least 40% of the property must be occupied by the borrower or a member of their immediate family, or intended for their occupation.

The definition of a regulated mortgage does not cover the following:

  • buy-to-let mortgages, (unless the tenant is a member of the borrower's immediate family, or the borrower intends to occupy the property at some stage);
  • second charge loans; and
  • loans to companies (except in the case of trustees).

On the other hand, as well as loans for house purchase, where the security is a first charge over the borrower's residential property, the following loans potentially fall within the broad definition of 'regulated mortgage contract' and FCA regulation:

  • lending for home improvements (including, for example, some in-store credit);
  • lending for debt consolidation;
  • business lending to sole traders and to partnerships in England & Wales;
  • secured overdrafts and secured credit cards; and
  • bridging loans.

 

If you choose a mortgage that is not regulated by the FCA. You will not benefit from the regularised standards and safeguards provided by the FCA.

However with our service you will still be able to make an equal comparison of the different mortgages available from different providers as we present mortgage details in a standard table.

Top

Remortgaging : The process of switching your mortgage loan without moving house.

Top

Repayment Mortgage : A mortgage loan funded by simple monthly repayments, calculated to repay capital and interest usually over a period of time.

Top

Repayment vehicle : The means by which a mortgage loan's capital is repaid. Examples include endowment policies, ISAs, and personal pensions.

Top

Search : A local authority search is an examination of local planning records to uncover details of any upcoming developments near the property which could affect its future value or existing restrictions on the site.

Top

Second-Hand Endowment Policy (SHEP) : Endowment policies part-way through their term can sometimes be sold on the open market. Disposing of an unwanted policy in this way often produces a better price than the traditional route of early surrender. Also known as Traded Endowment Policies (TEPS).

Top

Secured (loan) : If you should default on your mortgage, the lender can ultimately repossess your property to recover their money. The loan is hence said to be "secured" on the property.

Top

SIPP : - Self Invested Personal Pension Plan which allows full self investment and Income Withdrawal options for the individual concerned. The SIPP also carries the option of investing in commercial property using the fund/ loans.

Top

Standard Variable Rate (SVR) : A mortgage lender's main interest rate. Fixed-rate and discount loans usually switch to SVR when the special offer period expires. Conversely, tracker mortgages switch to a fixed percentage above Bank Of England Base rate (or LIBOR)

Top

Status : A shorthand term for the borrower's credit record and employment situation. See "Non-Status Loan".

Top

Surrender : The process of cashing in an unwanted endowment policy with the insurer who sold it to you. Doing this often produces a poor return for the money invested to date in the policy's early years.

Top

Survey : An expert examination of the property you are considering buying, aimed at discovering any structural flaws or repairs needed which you may have failed to notice yourself. There are several levels of survey available'

Top

Term : The period of time over which your mortgage will run. Typically 25 Years or to expected retirement date if that comes first.

Top

Tracker : Tracker mortgages link your interest rate to a benchmark, such as Bank of England base rate. The rate you pay moves up and down in line with the benchmark selected.

Top

Traded Endowment Policy (TEP) : Another name for Second-Hand Endowment Policy (SHEP).

Top

Underpayment : A mortgage repayment smaller than the regular agreed sum. Some flexible mortgages have this feature, which can be useful for people with irregular income.

Top

The information contained within this website is subject to the UK regulatory
regime and is therefore primarily targeted at consumers based in the UK.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. .

The Financial Conduct Authority does not regulate most forms of Buy to Let Mortgage and legal services/Conveyancing.

For advice on Pensions and Investments we act as introducers

For Buildings & Contents Insurance and Accident sickness & unemployment insurance we offer products from a selected panel of providers

 

© Wright Mortgage is a trading name of The Wright Mortgage Company Limited, which is an appointed representative of TenetLime Limited, which is authorised and regulated by the Financial Conduct Authority. TenetLime Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 311266.

The Wright Mortgage Company Limited is registered in England and Wales under reference 3914979. Registered address: Newlands House, Station Street, Bingham, Nottingham, NG13 8RQ