The Better-Mortgages uk mortgage terminology glossary (P)

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.

0-9 | A | B |  C | D | E |  F | G | H |  I | J | K |  L | M | N |  O 
 P | Q |  R | S | T |  U | V | W |  X | Y | Z 

Panel valuer

An independent valuer appointed by the lender to inspect a property to determine the adequacy of security for loans, is called a Panel valuer.

Part redemption

This occurs when the borrower makes a lump sum capital repayment in part settlement of a loan. Some lenders specify a minimum amount  for Part redemption.

Pension mortgage

An interest-only mortgage through which capital is paid off from the proceeds of the commutable lump sum derived from a personal pension. The Pension mortgage also provides for a pension after the mortgage is redeemed.

PEP mortgage

Personal equity plans  ( PEPs ) are tax-free savings schemes, so a mortgage linked to such a scheme has the effect of providing a tax-efficient savings vehicle to repay the capital on maturity. PEPs are no longer available and have been replaced by Individual Savings Accounts ( ISAs ), so a PEP mortgage is no longer available to new customers.

Portable mortgage

Some mortgages allow you to transfer the mortgage to a different property without penalty, even if a redemption charge would be payable on termination of the mortgage. Since the Portable mortgage is being transferred and not terminated redemption penalties would not apply.

Positive covenant

A condition applying to land which specifies certain actions to be taken by the owner is called a Positive covenant. An example is maintenance of boundaries.

Possession

The right of the lender to take possession of the property to protect his claim as lender and to enable him to retrieve a loan is called Possession.

Possessory title

An occupier of land can register this type of title at the Land Registry. If unchallenged after 12 years, the occupier has an absolute right to the land (`squatter's rights'). The Land Registry will not convert Possessory title to absolute title, however, until 15 years after registration of the former

Power of sale

A legal remedy of a lender through which a mortgaged property is sold to repay the mortgage debt is called Power of sale.

Protected loan

Prior to 1988, any number of persons occupying a property (except married couples) could each claim MIRAS entitlement on a joint loan. When, in 1988, the entitlement was changed to relief on the basis of the property rather than individuals, loans completed before that date  were deemed a Protected loan and continued to attract relief on the original basis. If parties to protected loans subsequently marry or re-mortgage, this tax perk is lost. The onus is on the lender to monitor such cases for continuing entitlement to MIRAS on the old basis.

Provisions

Amounts set aside in the accounts of a lender in anticipation of bad debts and losses attributable to present assets are called Provisions.

Puisne mortgage

A legal mortgage not supported by the deposit of title deeds is called a Puisne mortgage (pronounced `puny').

Tell me more about Better Mortgages