Mortgage glossary - D

A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z

Mortgage terms defined on this page:

Deed

A legal document signed and witnessed, sealed and formally handed over. It has special significance in law. For example, a conveyance has no force in law unless it is in the form of a deed. The title to freehold and leasehold property may only be transferred by deed.
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Deferred Interest Mortgage

With a repayment mortgage, the interest is normally paid off first, over the first few years. With a deferred interest mortgage, this is not the case. As a result, the borrower will end up owing more than the initial mortgage amount and the interest payments will be higher over the rest of the mortgage term.
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Deposit

This is the borrower’s first instalment in a series of payments, which is a contribution towards the value of the property. The deposit is a sign of good faith to the seller when the initial agreement is made.
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Discounted Rate mortgage (low start)

Here, a lender gives a fixed discount off the normal variable rate for a guaranteed period of time. This type of mortgage may be more restrictive than others, and the borrower should watch out for early repayment fees. The discount may be for six months or a number of years, allowing the borrower to cover the costs of moving home.
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Draw Down Facility

These facilities allow you to draw funds from your mortgage account during your mortgage term. You can use this as a simple secured loan, but you must not increase the size of your borrowing over the previous mortgage advance.
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THINK CAREFULLY BEFORE SECURING ANY DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Mortgages