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Mortgage Glossary Letter "M"
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M,
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Click on the letter or the term you wish to have defined. You will them be take to a page with an explanation for what the term means
Mortgage
In legal terms, a mortgage is a deed that pledges freehold or leasehold property as security for a loan. If the borrower does not maintain repayments, the lender has the right to resell the property.
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Mortgage Indemnity Guarantee (MIG)
See Higher Lending Charge.
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Mortgage Guarantee Premium
See Higher Lending Charge.
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Mortgage Offer
This is the document issued by a mortgage lender to a prospective borrower, after their mortgage application has been approved. It will set out the conditions of the mortgage. Study it carefully and make sure your solicitor sees it. The mortgage offer is normally valid for three to six months, but the lender may withdraw your funds at their own discretion – for instance, this may happen if you’re made redundant.
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Mortgage Protection Policy
This is a particular type of life insurance policy that relates to your mortgage. The sum payable on your death decreases as time goes on, as it should only cover the outstanding mortgage amount. Some lenders may insist that you take out a mortgage protection policy as a condition of lending you the money.
Compare mortgage protection cover.
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Mortgage Term
This is the number of years over which the mortgage is arranged. 25 years is standard, but available mortgage terms will differ from lender to lender. The average length of time that people keep one mortgage before moving house is around seven years.
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Mortgage Valuation
This is a basic survey that lenders require before approving a mortgage. The borrower normally receives a copy of the mortgage valuation, but should ideally obtain a full structural survey before committing to buying the house.
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Mutual Membership Terms
Sometimes taking out a mortgage enables the borrower to become a mutual member of the lending organisation. This may include voting rights or entitlement to windfall benefits.
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