The A-Z of Mortgages - D
Mortgage jargon can be confusing, so we are continuing to bring you the jargon you need to understand your mortgage better. Find the full glossary here.
D is for...
Deposit – The amount of money you are putting towards the purchase.
Debt Consolidation – Increasing your mortgage to pay off loans and credit cards. If you choose carefully, this should save you money each month as the mortgage rate should be cheaper than the interest rate on loans, credit cards and other finance. However, you may pay more over the term of the loan.he CCJ remains visible for 6 years.
Decision in Principle – (see also Agreement in Principle). A certificate given by a mortgage lender to say how much you can borrow. This means you can be sure you are looking at properties in the right price range. It also means estate agents will take you seriously. AIPs are given subject to full underwriting, so you will still need to apply for a mortgage and submit all your documents.
Default - When a lender closes your account due to missed payments, usually when you are between 3 and 6 months behind. This will impact your credit score. Once repaid the Default is satisfied although your credit file is updated, the Default remains visible for 6 years.
Stay tuned for E coming soon, or visit our online blog for the full A-Z glossary here. For more in depth information, please contact us or call Rachael on 01323 436680 and book a FREE initial consultation today.