The Better-Mortgages uk mortgage terminology glossary (U)

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

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Ultra vires

A Latin term meaning `Outside the powers'. Ultra vires becomes relevant when lending to a corporate body, which may not be permitted to borrow under its Memorandum. The Companies Act 1989 enables companies to adopt `general trading powers', to some extent rendering ultra vires redundant.

Undertaking

An Undertaking is a condition of mortgage where the borrower is obliged to carry out certain works within a specified period of time following completion of the mortgage.

Unit-linked endowment policy

Where a borrower has taken out an interest onl mortgage, a Unit-linked endowment policy is one method of paying off the capital element of the mortgage, using the proceeds of the endowment policy. these types of policy usually including life cover, and are designed to provide high investment performance, but they are speculative in that they provide little or no guarantee.

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