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Cap & collar mortgage |
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Cap & collar mortgageThis is a mortgage that has both a top and bottom limit set for the interest rate. It is a very safe and risk free type of mortgage, as you are protected against intetrest rate rises above a certain point, but you are losing some of the potential gains if interest rates drop.Cap & collar mortgage Similar MatchesMortgage agreement in principleMortgage agreement in principleAn expression of a mortgage lender's willingness to enter into an agreement subject to other conditions being met, such as credit checks and a satisfactory property valuation. Mortgage indemnityMortgage indemnityA mortgage indemnity allows a mortgage lender to recover the costs incurred from a repossession by pursuing the former owner for the difference between a) what the property was sold for and b) what the former owner still owes under the mortgage.In effect, if you are unable to pay your mortgage, and your property is repossessed and sold, the lender can still chase you for a shortfall if the amount raised by the sale doesn't cover your debt.Some mortgage companies have insisted that borrowers take out an insurance policy to cover the potential liability - know as a mortgage indemnity guarantee. MIGs are most common where the deposit being put down by the mortgagor is less than 10% of the borrowed amount. Typically a MIG will add £1,600 to the cost of a £100,000 mortgage.MIGs have come in for a lot of bad publicity, and are not as common now as they used to be. Some lenders have abandoned them altogether. Mortgage backed securityMortgage backed securityA security, backed by one or more mortgages. Mortgage brokerMortgage brokerA person or company engaged in the arrangement of mortgages for buyers. The broker is usually paid a commission by the lender. Mortgage deedMortgage deedThis is the agreement which explains the conditions of the mortgage (loan). It is a document to be signed by all parties to the remortgage on your property, and will be sent to HM Land Registry to register the remortgage. Further SuggestionsFixed term reverse mortgageflexible mortgage account Delinquent mortgage reverse annuity mortgage Mortgage confirmation Alternative mortgage instruments Commercial Mortgage Backed Securities biweekly mortgage loan Foreign currency mortgage Pension mortgage GEM (growing equity mortgage) All inclusive Trust Deed (wrap around mortgage) Open End Mortgage Mortgage Company Stepped fixed rate mortgage Guaranteed Mortgage Certificates (GMC) Mortgage pool Gnma (government National Mortgage Association) Options Capped rate mortgage mortgage capped rate mortgage Mortgage Backed Securities Clearing Corporation (MBSCC) Cashback mortgages Variable rate mortgages mortgagee |
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