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'mortgage Jargon Made Simple'

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http://news.bbc.co.uk/1/hi/business/4951936.stm' rel="external nofollow">
Like all financial sectors, the mortgage market has its own terminology which can often be a mystery to the man in the street.
Here, we look at some of the terms that are increasingly being bandied around by lenders and mortgage brokers.
One of the areas where new jargon has exploded is the - excuse the jargon - "non-standard" or "non-conforming" mortgage sector.
Very simply, non-conforming mortgages are for borrowers who, for whatever reason, can not take out a conventional, or "conforming" mortgage with their high street building society or bank."

How nice of them, let us dig deeper :-

"Almost certainly, credit impaired mortgages will charge a slightly higher interest rate as a result of the increased risk you represent"
"The term "credit impaired" is self-explanatory, but "near-prime" and "sub-prime" mean that rather than get a "prime" mortgage from a mainstream high street lender, you will have to make do with a product one step down from that, often from a specialist lender. "
"Of course, people who have had more serious credit problems in the past - county court judgements (CCJs), for example - may find that they will only be offered a "medium adverse" or "heavy adverse" mortgage"
"Another non-standard term that's widely used these days is "self-cert".
Self-certification mortgages are becoming increasingly common as more and more people work for themselves or have less conventional forms of income."

That'll be fraud then, nothing like a nice bit of mortgage fraud in order to keep stoking this crumbling wreck. Any more scams we can pull, ahh yes :-

"Affordability" is another relatively new word in the lending lexicon. Over the last year or two, a growing number of lenders have jettisoned traditional "income multiples" in favour of a new affordability-based approach." Whereas income multiples - a simple multiplication of an applicant's gross salary by a set amount, such as 3.5 - are now seen as crude"

Get the jist?

Edited by BuyingBear

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And the disclaimer

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.

Why print it if its a load of b0llocks?

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All shall have mortgages.

Not a bad thing of course in the right situation.

Plus they are toeing the Gordon line. "A Nation of homeowners".

It occurs to me that the self cert mortgage may be useful to the succesful criminal.

A convenient way to launder money?

Do the money laundering checks not apply to mortgages?

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  • 301 Brexit, House prices and Summer 2020

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      • down 5% +
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