Jargon Buster

At a loss to understand arrears, affidavits or air bricks? Bamboozled by balloon payments and back-to-back escrow? Confused by conveyancing, cash-flow and closing costs?

If so, our Jargon Buster will be just what you need.It's a glossary of terms packed full of property phrases, estate agent slang, financial words and other terms you may come across in your real estate or personal finance activities.

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Jargon Buster: M

Our glossary results: 49 matches!

Maintenance charge

The cost of maintaining and repairing communal parts of a building.

Maintenance fee

The monthly assessment members of a homeowners association pay for the repair and maintenance of common areas.

Major defects

Particular features that may affect either the present value, or the ability to resell the property at a later date. It will be up to the surveyor to judge what the urgent and significant matters are that could affect the market value of the property. Identified in homebuyers report/ full survey

Mandatory products

These are supplementary products that some businesses insist you purchase along with the core thing that you are buying. This is often buildings insurance, income protection products or something else that is sometimes sold in conjunction with a mortgage.

Margin

The lender's "retail markup" on the mortgage. For example, if the index rate for an adjustable rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent.

Market Capitalisation

The number of shares in issue multiplied by the share price at the time the market capitalisation is to be calculated.

Market conditions

Factors affecting the sale and purchase of homes at a particular point in time.

Market maker

A firm which is a member of the stock exchange which is committed to offer to buy and sell the securities it trades by continuously providing two-way prices for the shares it follows.

Market value

The price that a piece of property sells for at a particular point in time.

Mechanic's liens

Payment owed to a contractor for work done on a property.

Merger

Where two companies often in the same or a related industry agree to join together. The structure of the new company is still reflected in the ownership shares of the original companies.

Mid price

This is the median price of the buying and selling spread (to buy and sell a share) quoted by market makers and usually the price shown in the share price pages and market reports by financial media. However, this is not the price at which you could necessarily expect to conclude a deal to buy or sell. The price at which you buy will be higher and the price at which you sell will be lower .

MIG

This is insurance for the lender paid by the consumer in a one-off payment, on 'high' LTV mortgages. This protects the lender in the event that you default on the loan and the sale of the property is not enough to repay the amount that they are owed. Some lenders will insist you pay this if your mortgage is for as low as 75% of the value of the property, but 90% is a more common level. Some lenders will not insist on it regardless of the loan value. You can often add this fee to the loan, but be aware that you will then be paying interest on it until the loan is repaid in full.

Mining search

This is an investigation often carried out by a buyer's solicitor if the property being bought is in a mining area, for the purpose of ensuring that the property has not been effected by a mine close by.

MIRAS

Tax relief deducted from interest payments on the first £30,000 of your mortgage. Phased out in April 2000.

Missives

This is a process unique to buying a house in Scotland that is a bit like finalising the contracts in England, but which happens much sooner in the conveyancing process. The two solicitors exchange letters and iron out any of the finer details that were not explicitly mentioned in the original. This may include such things as details of any fixtures and fittings that are actually staying, or perhaps a slight alteration to the entry date. Once both parties are agreed on all of the details of the offer, which usually does not take long, the missives are said to be 'concluded'. This means that both parties have now entered into a legally biding contract from which withdrawal will undoubtedly incur a hefty compensation bill running into many thousands of pounds. Once missives are completed, you are also legally responsible for the structure of the property.

Modification

A change in any of the terms of the loan agreement.

Monthly fee

A fee charged once a month.

Monthly repayment

This is the amount you pay to your lender each month towards the cost of your loan.

Mortar

An adhesive mixture of sand, cement, lime and water, used to join stones or bricks.

Mortgage

The name given to a loan used to buy a property. Usually given at a fairly low rate of interest, often cutting your monthly outgoings in comparison to renting, while maintaining the same or a higher standard of living. You can take twenty-five years to pay back the money and still end up with a house that you can call your own. It's simple, how can you go wrong?

Mortgage acceleration clause

A clause which allows a lender to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or the borrower defaults on a scheduled payment.

Mortgage advance

The money loaned to the buyer, by the lender.

Mortgage application

Forms used to assess whether you meet the lender's underwriting criteria. These criteria are set to ensure that barring any unforeseeable change in circumstances, you will be able to support the mortgage and meet the repayments. Questions relate to such things as income & status, equity, personal details, credit history etc.

Mortgage application fee

A charge purely for applying for a mortgage. Paid to the lender upfront at the time of application it is usually between £100 and £300.This type of fee is becoming less common than an arrangement fee. As with arrangement fees, this type of mortgage fee is usually found with the special deals from lenders possibly to restrict the number of applicants by only attracting serious buyers. Some of the time this fee is refunded on completion of the mortgage.

Mortgage arrears

The amount of back pay you owe your mortgage lender for failing to meet your mortgage requirements.

Mortgage broker

An independent agent who shops around for the best mortgage deal on behalf of his clients.

Mortgage cash deficit

Money still owed and the end of the repayment period of an interest only mortgage.

Mortgage cash surplus

Money left over at the end of a mortgage term, over and above the amount required to pay back the debt.

Mortgage certificate

The first document provided by an mortgage lender which shows any prospective seller that you can actually get a mortgage to cover the purchase price. It also provides a handy reference for some of the key features of your mortgage, and what your repayments will be for the introductory offer period, if there is one.

Mortgage code

The mortgage code is a set of standards defined by the Council of Mortgage Lenders, that lenders voluntarily subscribe to. It sets out codes of conduct on how a lender or intermediary should act when arranging your mortgage, as well as how you should be dealt with once your mortgage is in place. It also tells you how to complain in the event of a lender not keeping to the code and who to complain to.

Mortgage code arbitration scheme

An arbitration service between members of the public and lenders.

Mortgage confirmation

When you get a written confirmation of your offer, you usually receive two things. Firstly, there will usually be some form of standard covering letter, thanking you for your hugely valued business and welcoming you into a family of customers that have their mortgage lender in common. In addition to the letter, you will receive a written mortgage confirmation. This will normally set out some of your personal details, some facts about the property, your salary details, your solicitors (if you have appointed them by this stage), and will require a signature.

Mortgage debt

The amount outstanding on your mortgage.

Mortgage deed

This is the agreement which explains the conditions of the mortgage (loan). It is a document to be signed by all parties to the remortgage on your property, and will be sent to HM Land Registry to register the remortgage.

Mortgage incentives

The lender may offer a discount or fee-free period on buildings insurance, accident and sickness insurance, redundancy insurance, or payment protection insurance. This is often done to encourage you to take up the policy, which you are then fairly likely to keep in the longer term. Other common incentives include a free valuation and money towards solicitor's fees.

Mortgage Indemnity Guarantee fee

This is insurance for the lender paid by the consumer in a one-off payment, on 'high' LTV mortgages. This protects the lender in the event that you default on the loan and the sale of the property is not enough to repay the amount that they are owed. Some lenders will insist you pay this if your mortgage is for as low as 75% of the value of the property, but 90% is a more common level. Some lenders will not insist on it regardless of the loan value. You can often add this fee to the loan, but be aware that you will then be paying interest on it until the loan is repaid in full.

Mortgage Interest Relief At Source

Tax relief deducted from interest payments on the first £30,000 of your mortgage. Phased out in April 2000.

Mortgage liens

The outstanding unpaid balance on a mortgage loan.

Mortgage Payment Protection Insurance

An MPPI policy pays your mortgage for you if you become unable to work for an extended period of time, as a result of redundancy, accident, sickness or disability. It should provide enough income to cover all your monthly mortgage expenses. If you have a repayment mortgage, this should be your capital and interest repayment and if you have an interest-only mortgage, the MPPI should cover your interest payment as well as your normal monthly contribution to the investment vehicle that will repay your loan.

Mortgage reference fee

If you apply for a remortgage or a new mortgage, the new lender will want a mortgage reference from your existing lender. You will probably have to pay for this. Costs £20 - £50

Mortgage term

The period for which a mortgage is taken out.

Mortgage types

For example, repayment or interest. Or fixed, capped, tracker, discount or stepped rate etc.

Mortgagee

The lender of a mortgage.

Mortgagor

The mortgagor is another term for the borrower.

MPC

Monetary Policy Committee of the Bank of England. Meets monthly to discuss and alter interest rates etc.

MPPI

An MPPI policy pays your mortgage for you if you become unable to work for an extended period of time, as a result of redundancy, accident, sickness or disability. It should provide enough income to cover all your monthly mortgage expenses. If you have a repayment mortgage, this should be your capital and interest repayment and if you have an interest-only mortgage, the MPPI should cover your interest payment as well as your normal monthly contribution to the investment vehicle that will repay your loan.

Multifamily mortgage

A mortgage on a multifamily dwelling with more than four families, typically an apartment building.

Multiple agency

Several agents market your property and the one that sells it gets the commission.
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