Jargon Reference Guide



 

Maintenance Charge (or Service Charge)


The cost of repairing and maintaining external or internal communal parts of a building charged to the tenant or leaseholder.

Maisonette


A property arranged over more than one floor (ie: a portion of the house), acessed via a private entrance.

Mortgage


A sum of money advanced by a lender (such as a bank or building society) on the security of a property and repayable over a long period.

Mortgage Deed


A legal document relating to the mortgage lender's interest in the property and containing the terms of the mortgage.

Mortgage Indemnity Guarantee (MIG)


An insurance policy that mortgage lenders may require buyers to pay for if their loan is above a specified amount of the purchase price.

Mortgage Indemnity Premium (MIP)


An insurance policy that protects the lender against default of mortgage repayments. Although the policy benefits the lender, it is the borrower who usually pays the premium.

Mortgage Payment Protection (MPP)


An insurance designed to pay your monthly mortgage for a limited period (usually a year) if you are unable to work through illness, disability or redundancy.

Mortgage Rate


The standard variable interest rate quoted by all mortgage lenders which normally varies with the Bank of England base rate. All discounted rates are based on this mortgage rate.

Mortgage Term


The period of time over which (repayment mortgage) or at the end of which (endowment mortgage) the loan is to be repaid.

Mortgagee


The lender of a mortgage (a bank or building society).