The Better-Mortgages uk mortgage terminology glossary (M)

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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Memorandum

The constitutional document of a limited company or building society which defines its powers and relationship with the outside world. In lending, it determines whether a company has the power to borrow and to what extent. The Memorandum can only be changed by Special Resolution of the members.

Modifying agreement

An agreement made to vary the conditions of a loan regulated by the Consumer Credit Act 19 74 is called a Modifying agreement.

Mortgage

A loan taken out to assist in the purchasing of  a property is called a Mortgage.

Mortgage approval certificate

A certificate issued by some lenders to indicate conditional approval of a mortgage subject to a suitable property being found. The Mortgage approval certificate is issued if status can be corroborated.

Mortgage broker

A person or company who researches the mortgage market and acts as an adviser to clients seeking a mortgage, and as a point of contact between the client and the lender is called a Mortgage broker. Some mortgage brokers are tied to specific lenders and therefore only offer the limited product range from those lenders. Many mortgage brokers are independent (as is Better-Mortgages) and can give independent advice on a wider range of products from different lenders.

Mortgage calculators

A collection of software tools to allow a user to perform 'what if' experiments, to see what factors affect mortgage costs and payments. Using a set of Mortgage calculators is helpful in deciding affordability and potential cost savings, before house hunting, so you can set realistic expectations.

Mortgage deed

The legally binding contract between lender and borrower is called the Mortgage deed. The main type of mortgage deed used in England and Wales is a legal charge. In Scotland it is a standard security.

Mortgage protection insurance

An inexpensive type of 'diminishing term' life insurance designed to provide a lump sum in the event of death. The sum provided by Mortgage protection insurance is usually just sufficient to pay off the mortgage.

Moveable property

Any personal property which can be moved, such as furniture, books and CDs is called Moveable property. Even buildings can be regarded as moveable if the owner is prepared to take them down and rebuild them brick by brick, although land will always be immovable.

Mortgage Indemnity Guarantee ( MIG )

A single premium insurance policy, paid for by the borrower prior to completion of the mortgage is called a Mortgage Indemnity Guarantee ( or MIG, also known as a higher lending charge ). It insures the lender for losses in excess of (usually) 75% of the loan-to-value sum. The borrower still remains liable for any amount claimed, so the insurer can recover the sum paid out under its power of subrogation.

Mortgage Interest Relief at Source ( MIRAS )

A tax relief scheme introduced in 1983 which gave tax relief on interest paid to lenders was called Mortgage Interest Relief at Source. Qualifying borrowers paid interest net of tax relief to the lender, and the Inland Revenue paid the relief due on the loan to the lender. MIRAS was withdrawn in April 2000.

Mortgage refinance

When you take out a remortgage the action of refinancing the exisitng mortgage with a new one is known as Mortgage refinancing

Mortgagee

The lender is the Mortgagee.

Mortgagor

The borrower is the Mortgagor.

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