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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Further Advance

An additional loan by the lender to the borrower, which may be for any purpose and secured by the existing mortgage deed.

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F

Financial Services Authority (FSA)
The independent watchdog, appointed by the Government, that regulates financial services. The FSA took over statutory regulation for all mortgage business on the 31st October 2004 and for general insurance business on the 14th January 2005.
Final Reminder
A letter requesting payment and sent to a customer who is in arrears before legal proceedings start.
First Mortgage Payment
This is higher than the normal monthly payments, because the lender doesn't collect it until after the loan starts. So, as well as the normal monthly amount, the first payment will include an interest payment for the rest of the month in which the loan began.
Fixed Rate
The interest charged on a mortgage is set for an agreed period.
Fixtures
Any item that is attached to a property and so legally is part of the property.
Flexible Mortgage
This type of mortgage is relatively new. The interest rate is variable but has the big advantage that it is calculated daily instead of annually. This means that any capital repayment of the loan will affect the interest charged on the outstanding balance immediately. By making regular overpayments, the interest saved on the mortgage over the term can be quite significant. Also, most lenders will allow funds to be drawn from the account up to the original mortgage balance or even allow payment holidays.
Freehold
This is where you own the property and the land that it is on.
Further Advance
An additional loan by the lender to the borrower, which may be for any purpose and secured by the existing mortgage deed.