Jargon Buster

The world of Finance is full of buzz words and Jargon. In this section I'll translate a whole rack of finance terms so you won't get caught out.

Go direct to: A-B | C-D | E-G | H-L | M-P | Q-S | T-Z | Jargon Index

This is my Index of Mortgage and Loan terms beginning with the letters H to L.

Hire Purchase
Hire Purchase is the term for items which are bought on credit, such as cars, electrical goods or furniture. Any Hire Purchases will show up on a credit check, showing your payment history and if you have any payments outstanding.
Homebuyers Report
This is a survey carried out before a home is purchased, reporting on any damage and what work may need to be done on the property. The report covers the entire area of the property. Homebuyers Report is also known as a Homebuyers Survey
Household Insurance
A term used to describe both buildings and contents insurance. Buildings insurance is likely to be a requirement of any mortgage lender.
Interest
Whenever you take out a loan or mortgage you will pay interest on the amount you borrow. This will usually be a percentage of the amount you borrow. Interest is how lenders make their money as over the repayment period you will pay more than you originally borrowed.
Joint Application
If you and your partner are applying for a mortgage together it is called a Joint Application. Most lenders will lend you either 2 and a half times your combined salary or 2 times for the 1st Applicant and 1 time for the 2nd Applicant.
Leasehold
This means you own a property rather than rent the property for a set number of years. When the lease expires, the property returns to the freeholder. Shops and business premises are commonly sold on a leasehold.
Local Authority Search
This is a check done by the conveyancer of a property on the the services of the local council. This will include any proposed developments in the nearby area, such as road improvements.
LTV
This term is used to describe the Loan to Value. The size of the mortgage you require compared to the value of the property. A £80,000 mortgage on a house valued at £92,000 would mean a LTV of 85%. You would then require a 15% deposit.