The Better-Mortgages uk mortgage terminology glossary (F)

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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Feudal estate

The principal form of land tenure in Scotland is called Feudal estate.

Fixed rate mortgage

With a Fixed rate mortgage the monthly repayments do not change for the period of the fixed rate. At the end of the fixed rate period the interest rate either reverts to the lenders standard variable rate, or is renegotiated for a further period.

Flexible mortgage

With a Flexible mortgage you are allowed to make extra payments when you have extra money available. Extra payments can be lump sum or extra amounts per month. Most flexible mortgages also offer the option of taking a 'payment holiday' by building up a reserve of excess payments. Both these features can help in paying the mortgage off early, or coping with unexpected expenses. A flexible mortgage is usually offered on a daily interest basis, and because you are being offered this flexibility as an extra service you will pay slightly higher rates of interest compared to standard variable rates. 

Forfeiture

In the context of leasehold property, Forfeiture occurs when a leaseholder fails to comply with one or more of certain of the conditions of the lease and forfeits all rights of ownership of that lease. But the leaseholder, in some instances, can mitigate the harshness of this.

Freehold

One form of ownership of an interest in land, 'in fee simple'. Freehold rights are the highest and most secure type.

Foreclosure

A legal remedy on default, all but obsolete in the UK. A Foreclosure order caused the borrower in default to forfeit the equity of redemption (i.e. on sale, the lender would keep any profit). A foreclosure order would have to be granted by the Chancery Division of the High Court of Justice.

Full endowment mortgage

The Full endowment mortgage is an interest only mortgage through which capital is repaid by the proceeds of a with-profits endowment life insurance policy. The basic sum assured is equal to the mortgage, guaranteeing that the loan will be paid off in the event of survival or death. A tax-free bonus is sometimes also payable, subject to investment performance.

Full structural survey

A comprehensive report by a qualified surveyor on the condition of a property to be purchased. The Full structural survey is expensive but provides absolute peace of mind, as all matters affecting the value and condition of the property are reported on. The price varies, depending on the value of the property.

Fungibles

Assets which can be measured and replaced by equal quantities of the same, such as cash and precious metals are called Fungibles.

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