The Better-Mortgages uk mortgage terminology glossary (E)

As with any industry, the world of mortgages has it's own language and definitions. Use the definitions in this glossary to look up uk mortgage terminology you are not familiar with.

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Early redemption charge

A charges imposed by the lender if the mortgage is paid of before a defined date has passed is called an Early redemption charge

Easement

Where one owner of land has rights over the land of another, such as a right of way, right of light, or a right of support, this is called Easement.

Endowment mortgage

This was the most popular method of repayment in recent years, until the Endowment mortgage declined in the early 1990s. The borrower pays interest to the lender and hopes that an endowment policy will repay the capital at the end of the agreed term. The most common method used in the past has been the low cost, with-profits endowment, though the borrower can buy a fully guaranteed version. Recent problems with potential short-fall of endowment 'with profits' policy returns has virtually killed off this product.

Enforcement order

An Enforcement order is issued by a local authority to carry out alterations to a property, such as reinstatement of a building to its former condition when work has been carried out without planning permission.

Enfranchisement

When a leaseholder buys the freehold of the property the leaseholder is leasing, it is called Enfranchisement 

Equity

The difference between the current market value of your property and all loan amounts secured against the property is called the Equity

Equity of redemption

The Equity of redemption is an interest in the land the mortgagor has. The mortgagor has the right to redeem at anytime from creation of the mortgage and, indeed, can dispose of that interest, for example, by selling it.

Excess

An Excess is an amount of an insurance claim which has to be met from the policy holder's own resources.

Exclusion

An Exclusion is a condition attached to an insurance policy which excludes the right to claim for specified perils.

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