Mortgage Dictionary: F

Please view the glossary definitions from our list below. Some terms have a dedicated page with a longer definition. This is available by clicking on the "more about " link.

Fee The amount charged by a lender, broker or other middleman for arranging a mortgage or property purchase. See arrangement fee, booking fee, Conveyancing fee, land registry fees, fees added to loan, IGP, stamp duty and valuation fee. Fee Indemnity Guarantee Premium (Igp) Fee indemnity guarantee premium (IGP) an insurance premium which insures the lender against any loss of money, e.g. If you default on your loan or get repossessed. This usually applies only if you borrow more than 70 per cent of the price asked for the property you are buying. Even though you have to pay for the insurance premium, it does not mean that you are covered by the insurance, the lender is. Fees Added To Loan The additional costs that are associated with arranging a mortgage and are incorporated into the amount you borrow, they may include indemnity guarantee premiums and arrangement fees. These fees that may be added vary with lender, and therefore care should be taken when the sum of the loan and any costs added to the loan may cause the total advanced to exceed a given loan to value ratio. See fee, arrangement fee, booking fee, conveyancing fee, land registry fees, IGP, stamp duty and valuation fee. Feuhold This is the equivalent of a freehold under Scottish law. Financial Adviser A person who helps individuals with their financial situation. First Charge A legal charge used to secure the main mortgage. A lender with a first legal charge over a property has a first call on any funds available from the sale of the property. See also: second charge. First Time Buyer A person that is purchasing a property for the first time. Some lenders offer preferential lending terms to first time buyers. A borrower who has owned a property before but has sold this prior to buying again may be offered first time buyer terms by some lenders but this is dependent on the lender. Fixed Rate Loans Offer a fixed rate of interest for a set time frame. Fixed Rates A loan where the initial payments, for a certain period of time, are based on a specific interest rate. The rate payable will not change during that period regardless of changes in the lender's standard variable rate.    Fixtures And Fittings There may be bites in the house that you want included in the sale like carpets door handles light fittings etc. Flat Over Shop Residential habitation situated above retail premises. Some lenders will not lend on this type of security because it is seen as having limited appeal to prospective purchasers and therefore have a lower value compared to an otherwise similar property. Any property that is located above commercial property usually takes longer to sell than properties which do not have any commercial element. A flat above a take-away restaurant is more difficult to arrange a loan on than a flat above a book shop. Flats A self contained flat that has been converted out of part of a larger property, is known as a converted flat. A flat which has the freehold of the land on which it is built, is known as a freehold flat. A flat designed and built as such; a self contained residential unit contained within a larger structure containing several self contained units or flats all sharing a common entrance, is known as a purpose built flat a studio flat, is a flat comprising a single habitable room, plus bathroom and possibly separate kitchen. Many lenders will not lend on these properties as they are considered more difficult to resell. Flexi An abbreviation for flexible. Flexible mortgages are offered by some lenders and allow you to make overpayments in order to repay the mortgage early or save for a special event. Forbearance An action a lender may take to delay foreclosure or legal issues with a delinquent borrower. Foreclosure The legal process when a borrower defaults on a loan. Foreign Currency Mortgage It is now possible to get a mortgage for your property in the UK in a mortgage denominated in a foreign currency. It sometimes gives you the opportunity to borrow money at a lower rate of interest than is possible in the UK. Forfeiture When a delinquent borrower surrenders their property rights. Freehold Land or property which is owned outright, as opposed to leasehold where the owner has the right to occupy the land or property for a given period of years only. See also: Feuhold. FSA Financial Services Authority. FTB FTB see first time buyer. Full Status A loan where complete checks are made on the borrower's credit history and income. Full Structural Survey This is very important as it will tell you if there is any problem or faults with the property you are buying.