Jargon Buster
Late charge
A fee a lender imposes on a borrower when the borrower
does not make a payment on time.
Late payment
A payment a lender receives after the due date has passed.
Lender's arrangement fees
Fee for arranging a loan passed on to the buyer by lender.
Lenders fees
Administration costs incurred by a lender to secure a
loan, paid by the applicant.
Lessee
The individual or company to whom a lease is granted.
Lessor
The individual or company who grants a lease.
Liabilities
Basically, liabilities are debts that you have and the
regular outgoing payments that you make.The reason you
must show your bank statements is usually to help the
underwriters identify anything in your current expenditure
that may impinge upon your ability to repay the loan.
They may want to know about any other mortgages, debts,
credit cards, HP agreements, loans, overdraft facilities,
maintenance and court orders.
Lifetime cap
A limit on how high the interest rate on a variable rate
mortgage can rise over the lifetime of the loan.
Loan application
The first step toward in submitting a home loan requires
the borrower to itemize basic financial information.
Loan application fee
A fee charged by lenders to for making a loan application.
Loan consolidation
When one large loan is taken out to pay off a variety
of smaller loans held with different providers. A mortgage
can be used for this purpose and in some cases can work
out cheaper as mortgage rates tend to be cheaper than
personal loan interest rates.
Loan to Value Ratio (LTV)
The ratio of your mortgage to the market value of your
property. Expressed as a percentage. For example, if you
have a mortgage of £95,000 on a property worth £100,000,
the loan to value is 95%.
Lock in
Allows the borrower to be assured a given rate of interest
for a mortgage. This usually involves paying a fee to
the lender. Mortgage rates not "locked in" are subject
to changing market conditions.
