Glossary of Terms

We have gathered together on this page, a collection of the terms most often used in the Mortgage, Financial and Property Services Industries.

If you are searching for the meaning of a term. Please click on its initial letter below. A list of terms commencing with that letter will be presented to you. Hopefully, you will find the term you require.

If you cannot find an explanation for the term you require or you believe our description to be inaccurate, please submit your request for an addition or correction. If you have a suggested correction, please make it polite.

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Debt Consolidation

This is a means to repay high interest debts (such as credit cards and personal loans) by incorporating them into a new mortgage to benefit from lower interest rates and lower monthly payments.

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D

Drawdown
Daily Interest or Daily Rest
Interest is calculated on the balance outstanding each day. So, when you make a payment, interest is calculated on the new balance straightaway. This is usually better than Annual interest or Monthly interest, especially if the mortgage is on a Capital and Interest basis.
Debt Consolidation
This is a means to repay high interest debts (such as credit cards and personal loans) by incorporating them into a new mortgage to benefit from lower interest rates and lower monthly payments.
Deed
This is the legal document detailing title ownership of the property.
Default
If a credit commitment is not met regularly, the creditor (or lender) may consider the borrower to have defaulted on the loan terms and require immediate settlement of the debt. Usually some form of repayment method can be agreed.
Defective Title Policy
Is an insurance policy taken out where a defect in the title to the property has been discovered. Where a defect has been discovered, the lender may insist on the policy to protect its security.
Deposit
The amount of money you put towards buying your property. Two deposits may be payable by the buyer:
  1. A reservation charge. The buyer pays this as a sign of commitment when they initially agree to buy the property.
  2. The deposit. A percentage of the price of the property, paid when contracts are exchanged.
Disbursements
A solicitors expenses for example: land registry fees, searches, faxes etc.
Discounted Rate
A guaranteed reduction in the standard variable mortgage rate. This often lasts for an agreed period.
Disposable Income
The money remaining each month from income after all committed and necessary expenditures have been deducted.
Drain Surveys
Specialist survey, often conducted with the aid of CCTV cameras, to examine the condition of drains and establish if the drains have collapsed or are about to, or if they have been damaged by tree roots, etc.
Drawdown Date
Drawdown is the date when the mortgage starts.
Drawdown Deadline
Some mortgage funds are available for a limited period only and usually these mortgages must start by a certain date - the drawdown deadline.