Mortgage glossary - E

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Mortgage terms defined on this page:

• Equity
• Exchange of Contracts (England & Wales only)
• Existing Liabilities

Equity

In housing terminology, equity is the difference between the value of the property and the amount outstanding on any loan secured against it: The current value of the property minus the outstanding mortgage amount. This is the amount of money you’d have if you sold up.
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Exchange of Contracts (England & Wales only)

This is the stage of property purchase at which legally binding contracts are exchanged between the buyer and the seller. After this point, the vendor must sell and the purchaser must buy on the terms agreed.
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Existing Liabilities

This term encompasses all of the borrower’s outstanding finance agreemenets apart from the mortgage: loans, credit cards, hire purchase, etc. Most lenders will take these items into account when assessing a mortgage application, and your repayments may be deducted from a salary calculation.
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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.