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Glossary of Mortgage Terms: F to G

Mortgage Terms Defined on this page:

Financial Institution,
Financial Services Authority (FSA),
Financial Services Provider, First Time Buyer,
Fixed Rate Mortgages, Flexible Loan,
Flexible Mortgage,
Fraudulent Application, Freehold,
Gazumping, Gazundering, Gross Income,
Guaranteed Loan, Guarantor.

Please see further definitions on the pages below:

A-B, C, D-E, F-G, H-I-J, L-M-N-O, P-Q-R, S-T-U-V-W-X-Y-Z.

Definitions:

Financial Institution

A expression used to describe any company or organisation involved with financal services such as holding, investing or lending money.

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Financial Services Authority (FSA)

The regulatory authority for the financial services industry in the UK. They are the watchdog responsible for overseeing and authorising firms who carry out investment business. You can find out more at their website http://www.fsa.gov.uk/.

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Financial Services Provider

A company such as a bank or building society, that provides financial services such as loans or mortgages.

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First Time Buyer

If you are looking to buy your first home you are known as a first time buyer. First time buyers have the advantage that they don't have a property to sell so can act more quickly than other buyers and not be caught in a chain. Lenders try and attract first time buyers with offers on mortgages that are only available to them.

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Fixed Rate Mortgages

A mortgage where the interest rate is fixed at a set level for a certain period of time. The main benefit of a fixed rate mortgage is that your monthly mortgage repayments are fixed for a specific time period, so the amount you have to pay back each month is not subject to change and will not be affected by a change in interest rates.

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Flexible Loan

A loan where you can vary the amount of money you pay back each month or even miss a payment. You will need to check the small print of your loan aggreement to ensure that the particular loan you choose offers the flexibility you require.

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Flexible Mortgage

A mortgage where the repayment schedule is flexible, hence you can vary the amount of money you pay back each month by over paying or even miss a payment. There will be limits to how flexible the mortgage lender will be in respect to the amount of over / under payments you can make, you need to check that the particular mortgage you choose is suited to your personal circumstance. Also see above flexible loans.

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Fraudulent Application

If you lie or put false information on an application for a loan then this is a Fraudulent Application. This is illegal!

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Freehold

If you own the land a house is built on forever then you own the freehold. It is usually used to describe owning a property and the land together. However, flats within a building are usually sold with a lease from the freeholder. A lease only lasts for an agreed length of time.

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Gazumping

The actions of the seller of a property who accepts an offer to buy it but then also accepts a higher one before all the legal paperwork has been done, such as the exchange of contracts. If this happens you may have already paid for surveys and other reports.

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Gazundering

When a buyer of a property, who has already had an offer accepted, reduces this offer before the legal exchange of contracts has confirmed it. Unscrupulous buyers do this to pressure the seller into accepting the lower price because they may have to put the property back on the market and loose the one they were hoping to buy.

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Gross Income

The amount of money you earn before any tax has been taken off. This doesn't include bonuses. The amount you actually receive each year is called the Net Annual Income.

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Guaranteed Loan

This is not a type of loan but a term used in marketing campaigns. You are guaranteed this loan because the Lender already knows something about you and has decided to accept you. They are usually offered by a bank or building society you already have an account with.

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Guarantor

A person who promises to pay for the debt of another if they Default on a loan. If could get a Guarantor if you can't borrow enough to pay for the home you want. First time buyers may get their parents to act as Guarantors.

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Please see further definitions on the pages below:

A-B, C, D-E, F-G, H-I-J, L-M-N-O, P-Q-R, S-T-U-V-W-X-Y-Z.