Glossary - D
- Daily Interest
- This is when interest is applied on a daily basis instead of monthly.
- Data Protection Act (1988)
- This act introduced regulations to protect the transfer of personal data within and between different bodies. Every time you apply for a store loyalty card, credit facility or magazine subscription, you are handing over substantial amounts of personal data for organisations to trade in. This data may enable them to make special offers which "may be of use to you", it also means more opportunity to sell you products or services you would not otherwise have bought. If you are not the kind of person to say no easily, make sure you always tick the "no marketing material" box.
- Debt
- The amount owed to a lender.
- Debt Consolidation
- A new single loan from a new lender replacing several loans. This may reduce your monthly payments by spreading out a larger loan over a longer period of time, and reducing the interest rate being paid.
- Debt-To-Income Ratio
- A way used by lenders to establish if a person is qualified to receive a mortgage or loan.
- Deed
- A document that proves you own the property. It will also show any land boundaries.
- Deed Of Covenant
- This document expresses the terms of a covenant (a binding agreement), which may typically be imposed by a lender to restrict certain activities, such as use of a house for sub-letting or commercial purposes.
- Deed Of Proxy
- A document enabling one individual to manage the financial and legal affairs of another person.
- Deeds Release Fee
- A fee charged by the lender for releasing the deeds of the mortgaged property and returning them to the owner or his solicitor, usually when the mortgage has been repaid.
- Default
- A payment or a series of payments that have been missed.
- Default Notice
- A letter served by a creditor to the borrower to say that a credit agreement has been breached, and that action must be taken by the individual to prevent the creditor seeking repayment via a CCJ.
- Deferral Period
- A period on a loan during which no payments need to be made. This is popular with student and graduate loans, to enable young people to finish their studies, or to travel, before having to start making repayments. "Buy now, pay later" type offers in furniture and other stores also operate with deferral periods.
- Deferred Interest
- This is a loan where some or all of the interest owed by the borrower is added to the amount outstanding which therefore causes the borrower to owe much more than originally borrowed.
- Delinquency
- Not making payments at the correct time.
- Delinquent Loan
- The borrower is behind on payments at this time. If payments are not brought up to date within a certain time frame the lender may take proceedings against that individual.
- Dependant
- An individual who depends financially on another person.
- Despatch Fee
- See deeds release fee.
- Direct Debit
- A method of making automatic payments electronically from a current account to pay bills.
- Direct Lenders
- Lenders who operate through use of call centres, mailing houses, or internet based operations, instead of an expensive branch-based network.
- Disbursements
- Fees paid to a solicitor for work involved with the house transaction, for example stamp duty.
- Disc
- Abbreviation for discount.
- Discharged Bankrupt
- Person whose period of bankruptcy has ended.
- Discharged CCJ
- A CCJ that has been paid. Disclaimer top A written notice designed to discharge liability of a company, for providing inaccurate information in a leaflet.
- Discount Period
- Period in which reduced payments are offered.
- Discount Purchase Price
- The price of a property which has been reduced below the open-market value, such as in the case of a right to buy purchase or a builder's discount. Under right to buy legislation, properties are not offered at the open market value, but at a discount, and if the property is resold within a three-year period, some or the entire discount will have to be repaid.
- Discount Rate
- With this the mortgage interest rate is lower than the current normal standard variable rate, but only for a certain period of time. Usually shown as a fixed percentage reduction to the lender's normal variable rate e.g. 1.00% discount for 2 years. DSS Payments top Income given from the department of social security towards the payment of rent or a mortgage. They are used by a lender only in exceptional circumstances to confirm the ability to service a loan. Benefits are only paid after the first 39 weeks of an income support claim.
The Mortgage Shop is a trading style of Mortgage Shop No1 Limited which is an appointed representative of Personal Touch Financial Services Limited which is authorised and regulated by the Financial Services Authority. The Mortgage Shop is entered on the FSA register (http://fsa.gov.uk) under reference 425677. Buy to let mortgages may not be regulated by the FSA & personal loans are not regulated by the FSA. The guidance and/or advice within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
There will be a fee for mortgage advice of £299. Telephone calls may be recorded for training purposes.
