The Better-Mortgages uk mortgage terminology glossary (R)

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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Receiver

One who acts on behalf of a lender in respect of a property possession. The duty of the Receiver is to gather any income due to the property (for example, from tenants). A receiver acts as agent for the borrower The funds must be applied to the mortgage account.

Redemption

The act of paying off a loan is called Redemption.

Redemption interest

This is charged on the redemption of a loan by many institutions, often as a percentage of the amount being paid to redeem. Some lenders charge part Redemption interest also. Nearly all lenders waive redemption interest if the borrower takes out a new loan with the same institution.

Red lining

The practice adopted by some lenders and insurance companies to refuse business in certain defined geographical locations which are considered too high risk is called Red lining.

Register of Sasines

The register of heritable security in Scotland, created by the Registration Act 1617, is called the Register of Sasines

Regulated loans

Loans which are subject to the provisions of the Consumer Credit Act 1974 are commonly called Regulated loans.

Release of part security

When the lender is prepared to reduce its security for an advance by releasing some of the land (for example, to permit widening of the road) it is called Release of part security.

Remortgage

A mortgage which is a replacement loan for an exisitng mortgage is known as a Remortgage or mortgage refinancing

Restrictive covenant

A condition applying to land which specifies what the owner cannot do. A Restrictive covenant usually arises from agreements between an earlier vendor and purchaser An example is a prohibition from carrying out a business on the land, or perhaps from keeping livestock.

Retention

A condition of mortgage whereby a lender holds back a portion of the advance pending work to be carried out by the mortgagor is called Retention.

Right to buy mortgage

A mortgage tailored for those people who are currently renting a property owned by a local Council and who have been given the opportunity to buy the property, is called a Right to buy mortgage. Council properties are often sold on a good discount to the typical value of a similar sized property.

Rules

Many mutual organisations (including building societies) have a set of rules, which represent their internal constitution. The Rules set down conditions for meetings, election of officers and so on. Building society rules invariably have some provisions relating to mortgages.

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