Loan Jargon - a comprehensive reference of loan terminology from i Secured Loans

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Margin

The lender's profit or retail markup on the loan.

Marginal Lender

A lender who will a loan only at or over a particular rate of interest

Mortgage Guaranteed Insurance - MGI

An insurance policy which aims makes good of any shortfall between the amount owed on a mortgage and the property value. It gives a benefit to the lender if the borrower defaults and repossession happens.

Monthly Repayment

This is the amount a borrower pays the lender each month towards the cost of the loan.

Mortgage

A loan used to purchase a property. This is known as the first charge on a property. A subsequent secured loan would be considered a second charge.

Mortgage Acceleration Clause

A clause which gives a lender the right to demand that the entire balance of a Secured Loan be repaid in a lump sum under certain circumstances. The acceleration clause can be triggered if the home is sold, the loan is refinanced, title to the property is changed or the borrower defaults on payment.

Mortgage Broker

A company or person who acts as an agent between people seeking mortgages and those providing them

Mortgage Code Arbitration Scheme

An arbitration service between lenders and members of the public.

Mortgage Constant

The ratio of the annual interest on a mortgage to its principal.

Mortgage Deed

The document which details a loan used to purchase a property. The mortgage deed must be witnessed and be registered with the Land Registry. It can be referred to as a Legal Charge or, in Scotland, it is called a Standard Security. When mortgage or secured loan is repaid the Legal Charge ( or Standard Security ) is removed from the property.

Mortgage Debt

The amount outstanding on a mortgage.

Mortgage Discount

A percentage of a mortgage principal which is discounted when the mortgage is sold

Mortgage Equity Analysis

A calculation of the difference between the value of the property and the amount outstanding on the mortgage

Mortgage Lien

A claim against a property which is mortgaged.

Mortgage Life Assurance

Insurance for someone holding a mortgage in the case of the debtor's death.

Mortgage Rate

The interest rate charged on a mortgage.

Mortgagee

The creditor in a mortgage, usually. a bank or building society.

Mortgagor

The debtor or borrower of a mortgage.

Monetary Policy Committee - MPC

The Monetary Policy Committee of the Bank of England. This committee decides interest rates for the UK. It determines the value of cash. When interest rates go up then the money in people's savings account should increase and the amount people in debt have to pay goes up. When interest rates go down then savings account will pay out less interest and variable mortgage payments are also reduced.

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