Merlin Mortgage Management

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

(A)

Accidental, Sickness and Unemployement Insurance (ASU) : In the event of an accident, sickness or involuntary unemployment befalling the borrower, this insurance will cover their mortgage repayments. Some lenders attach mandatory insurance cover to thier most attractive rates, although this is increasingly uncommon.
Also known as Mortgage Payment Protection Insurance (MPPI).

Additional Security Fee: See Higher Lending Charge.

Adverse Credit : This is an umbrella term used of applicants with poor credit history. This may include mortgage arrears, defaults, County Court Judgements (CCJ's), bankruptcy, Individual Voluntary Agreements (IVA's) and house repossession. Borrowers with elements of adverse credit are offered higher rates that standard Full Status applicants are, usually with terms and conditions relating to the extent of their adverse credit history. Often, adverse credit mortgages are Libor-linked rates.

Annual Percentage Rate (APR) : The APR is a rate calculated using a generic formula applicable to all Lenders, which includes all the costs associated with a mortgage. This allows for easy comparisons to be made between the different mortgage products offered by each Lender.

Arrangement Fee : This fee may be charged on specific products and is either payable in advance, added to the loan or deducted from the advance on completion. It covers the administritive expenses incurred whilst processing an application.