Glossary - E
- Early Redemption Payment
- Penalty charged by a lender for repaying the mortgage before the end of a certain term, depending on the conditions of the mortgage offer.
- Early Repayment Period
- Period in which the lender charges for redeeming the mortgage
- Effective Gross Income
- The total income a lender will consider when working out the maximum loan to be given to a borrower.
- Employed
- A person who has an open-ended contract of employment and has income tax and national insurance contributions deducted from their salary.
- Employee
- A person who works for a company as opposed to someone who does not work (un-employed), or someone who works for their own company (self-employed).
- Employer
- Any business, government body, or other body which has one or more staff members.
- Employer's Reference
- A statement written by an employer confirming the borrower's employment, salary and service details. This is essential in assessing an employee's ability to repay the loan.
- Employment Status
- An individual's employment position. That can be either employed, self-employed or unemployed; full time or part time.
- Endowment
- A life assurance policy which you pay monthly. Proceeds are free from all taxes as long as the policy conforms to all the qualifying rules. See also: with profit, unit linked, unitised with profits.
- Equity
- The amount that you own in your home, i.e. The value of the property less the mortgage owed.
- Equity Appreciation
- Increase in the equity you have in your home.
- Exclusive Products
- Particular mortgage schemes that are only offered to certain brokers or perhaps to a lender directly.
- Executor
- A person who executes the instructions in a will.
- Existing Liabilities
- Outgoings such as loans and credit cards which are taken into consideration by a lender when taking out a mortgage.
- Extended Redemption Penalty
- When a redemption penalty continues beyond the term of a fixed, capped or discounted rate.
- Extension
- This is an addition to any existing property in order to provide more space. Major extensions should always be drawn up by an RIBA registered Architect, and will require planning permission from the relevant local authority.
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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