Mortgage Deposit - Fixed Rate - A To Z

D
Deed
A legal document by which title to a property is conveyed.

Deferred Start
This allows the buyer to skip repayments for up to the first three months of their mortgage. These skipped payments will then be spread over the remaining term of the mortgage. This is only available to first time buyers and only with repayment mortgages.

Deposit
The amount of money a buyer must hand over on exchange of contract, which is usually 10% of the agreed property price.

Disbursements
Expenses paid out by the solicitor on behalf of the purchaser, which can include payments for postage and courier etc.

Discounted Mortgage
Many lenders offer discounts with their standard variable rate for a set period. This is a good way for first time buyers to keep their repayments lower during the first years of owning a home.

E
Endowment Mortgage
Where only the interest on the amount borrowed is paid to the lender each month. A payment is also made into a savings/investment policy, like a life assurance policy, each month. This is so that at the end of the loan term, the initial principle borrowed can then be repaid by the proceeds of this policy.

Equity
The amount of property a person owns. For example: The current value of the property less the mortgage borrowed.

Equity Release
This allows you to borrow up to 90% of the current value of your home, for a number of different purposes.

Estate Agent
A property agent who works on behalf of the seller, with the aim of getting the highest price for the property being sold.

Exchange of Contracts
At this point, the buyer and seller are legally bound to the sale and purchase of the property.

F
Failed Valuation
This occurs when a lender turns down a mortgage application after reading the surveyors valuation report.

Fixed Rate Mortgage
This is a mortgage with repayments that remain the same throughout the life of the loan, as the interest rate is fixed and does not change. Most Irish lenders offer fixed rates over 1,2,3,5,10 and up to 20 years.

Freehold
Straight ownership of property or land. Meaning there is no payment of rent and there is no limit on time for the owner.