A.S.U. - Accident,sickness and unemployment insurance
(sometimes referred to as A.S.R. - accident,sickness and redundancy
insurance). This is an insurance policy which is taken out by
the borrower and protects against the borrower being unable
to work for these reasons. The policy will usually pay normal
monthly mortgage repayments (plus insurance) if the borrower
is unable to work due to accident/sickness or unemployment/redundancy.
These payments will normally only be made for a limited period
of time - typically 6/12/24 months or until the borrower returns
to work. The terms of these policies and the cost vary considerably
from company to company.
Administration Fee - This is a
fee charged by some brokers which is not refundable if the
mortgage application does not proceed. The Administration
fee will often form part of the valuation fee but will be
retained by the lender even if the valuation has not been
carried out.
Adverse Credit - This is a general
term which encompasses arrears and county court judgements.It
can also include major credit problems which have resulted
in bankruptcy. For further information look at arrears, county
court judgement and bankruptcy.
Annual Percentage Rate - This is
meant to show the true cost of borrowing and adjusts the notional
interest rate to take account of all the initial fees and
ongoing costs to reflect the real cost of borrowing throughout
the entire mortgage term. Whilst this could be a good way
to compare relative deals care should be taken to ensure that
the rates being compared have been calculated on the same
basis.
Arrangement Fee - This is a fee
charged by some lenders in order to access particular mortgage
deals. Arrangement fees particularly apply if you are looking
for a fixed rate or discounted rate mortgage and these may
either be payable up front, added to the loan on completion,
or deducted from the loan on completion (check with the chosen
lender which one applies).
Arrears - Contracted mortgage payment
not made by the due date. Applicants who have arrears on a
current mortgage may experience problems if attempting to
arrange a new mortgage. A number of lenders do, however, specialise
in this area of the market.
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