| Ability To Pay |
A method of working out the creditworthy-ness of a customer, by estimating how much he or she will have left to make payments on a loan or mortgage after other deductions have been made from gross income. |
| Acceleration Clause |
Allows the lender to collect the balance of a loan if a borrower misses one or more payments. |
| Acceptance |
A positive response to an offer or a counter-offer. Acceptances may be 'conditional', 'express', 'implied' or 'qualified', depending on the circumstances of the deal and whether there are any further mitigation's, conditions or requirements. |
| Accident |
An unexpected event, usually referring to an injury or fatality, although in some accidents it is just property that gets damaged. Although some accidents are easier to prevent than others, the financial damage can be limited by taking out accident and sickness insurance, and ensuring that your car, house and other valuable property are properly covered. |
| Accident Insurance |
Insurance that covers you if you suffer certain injuries, such as loss of a limb or vision. |
| Accident, Sickness And Unemployment Insurance |
Insurance cover arranged by the borrower to protect against inability to meet mortgage payments. Unemployment cover is restricted to cover certain events only. Exclusions to this insurance include dismissal due to professional misconduct or taking voluntary redundancy. The accident and sickness cover does not cover any act of self-injury or any injury related to the use of alcohol or drugs. |
| Account |
See bank account, insurance account, credit account, trade account, foreign currency account. |
| Added To Loan |
The additional costs associated with arranging a mortgage that include a high loan to value fee or arrangement fees, which can be added to the amount you borrow. Fees that may be added vary by lender. |
| Additional Principal Payment |
An extra payment each month to help reduce a debt. |
| Additional Security |
When lending exceeds a certain loan-to-value, lenders may require additional security. The simplest form of additional security is a single mortgage loan-to-value, however other security such as cash or shares may be accepted as security. |
| Add-On Interest |
Interest a borrower pays to the lender for the duration of the loan. |
| Adjustment Date |
Date on which interest rates change for variable rate mortgages. |
| Administration Charge |
Any fee charged by bank or other financial institution to cover costs beyond day to day running of an account. This typically involves banks sending letters to customers to tell them they have gone overdrawn. |
| Administration Charge |
Some lenders will reserve a proportion of the fee charged for the valuation to cover their own costs. If an application does not proceed, this part of the valuation fee may not be refunded, even if the valuation has not taken place. Seevaluation fee. |
| Advance |
Amount of your mortgage/loan. See also Cash Advance. |
| Advice Centre |
A drop in centre which can offer advice on personal issues, including financial problems such as debt, unemployment or divorce. The most popular advice centres include: CAB (Citizens' Advice Bureaux), Student Advice centres, Job centres, and some council "one stop shops". |
| Affidavit |
A legal statement made in writing and in the presence of a solicitor or other legal professional. From the latin verb affidare; affidavit is the past tense "I have pledged". |
| Affidavit Swear Fee |
A fee charged when a mortgage lender is required to swear an affidavit. This is a written legal statement to a solicitor in connection with mortgage arrears. |
| Agreement In Principle |
This means you have been accepted for a mortgage or other financial product, but it will depend on issues such as a valuation report and confirmation of employment. |
