Money Jargon - The Letter H
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Money Crocodile knows the finance world is full of terms, phrases, buzz words and jargon. The below terms will help you with terms beginning with the Letter H
On this page we explain,
HLC > Hire Purchase > Holiday Loan > Homebuyers Report > HIP > Home Improvement > Household Insurance > Homeowner Loan
HLC
The higher lending charge, was formerly known as a mortgage indemnity guarantee.
This is a premium charged by Lenders in order to cover themselves, against any financial shortfall they may incur in the event of repossessing a property. As the property may well be sold then at a loss then the lender would have recouped something by charging a mortgage indemnity guarantee (MIG). A higher lending charge is usually applied if the amount required is higher than 75% LTV.
HLC is also known as: Additional Security Fee; Indemnity; Mortgage Indemnity Guarantee (MIG).
Hire Purchase
Hire purchase "hp" is a form of finance credit. The holder of a hire purchase policy agrees to buy goods and to pay for those goods in instalments. It is a procedure for purchasing goods under which the purchaser pays a deposit on receipt of the goods followed by a number of instalments until the debt is cleared. The goods do not become the property of the purchaser until the last instalment has been paid. If the purchaser defaults on installment payments then the firm can resume possession of the goods in question.The policy holder has the right to possess and use the goods from the time the contract is made although they do not yet own them fully.
Rental or lease agreements are hire purchase contracts where the customer hires the goods with an option to purchase. Keeping up the payments on any hire purchase products should be of paramount importance since late or missed payments could incur charges and increased interest rates. Repayment history on hire purchase products is recorded and goes towards determining a persons credit score. A good repayment history results in a good credit score.
When signing any credit agreement be aware of any obligations and conditions in the small print of the policy.
Holiday Loan
A holiday loan is just as the name suggest a loan specifically for a specific event, a holiday. Thinking of taking off getting away from it all, maybe the holiday of a life time, world cruise, perhaps a venture holiday or maybe you have relatives abroad who you wish to spend some quality time with. If you have been stuying for a few years maybe you wish to take a break and do a bit of travelling. How about a safari trip in Africa looking at the wildlife, or a second honeymoon? A personal loan could help you get away from it all. and do exactly what it is you wish to do for a change.
Homebuyers Report
The homebuyer report is currently paid for by a property buyer, this service involves a surveyor visiting the property, inspecting it and then making a report on the condition of the property. The surveyor will only inspect those areas of the property that are reasonably accessible or easily visible. This means that they will not remove carpets or test services etc. They will give the property a basic valuation which will help your lender determine whether or not the property is worth what you wish to borrow on it. Your lender will grant you a mortgage on the property only if it is worth the asking price.
The homebuyers report may also be called a homebuyers survey or a home condition report.
Homebuyers Report Survey.
The cost of the report can vary, the content will cover these basic points.
- General Condition
Reports on the general condition of the interior and exterior of the building and the local vicinity of the property. - Major Defects or Positive Attributes
Any thing that will seriously affect either the present value, or the ability to resell or re mortgage the property will be reported. The property could have positive points like original features which would help to increase the value, also any defects which serve only to decrease the value of the property will be mentioned. - Maintenance Recommendations
Any work that needs to be carried out immediately and anything that needs attention in the near future will be made clear in the report. If this work is not carried out it could adversely affect the property value when you come to sell it in the future. - Legal Guidance Issues
If there are any points or issues attached to the property then they will be reported int hte report and you will be advised to discuss them with your solicitor. - Basic Valuation
The surveyors opinion of the properties current market value will be included in the report..
A homebuyer's report can usually be arranged by the mortgage lender in conjunction with the valuation report. You could choose to instruct a surveyor separately, this could be a cheaper option, you can find surveyors on the internet or in local directories.
From June 1st sellers will be responsible for supplying potential buyers with a HIP or home information pack.
HIP
The HIP or the Home Information Pack is due to be introduced June 2007. The cost of producing a HIP is borne by the seller. The Home Information Pack will have to be complete before a property is put onto the market.
A Home Information Pack contains:
- An Energy Performance Certificate which states how energy efficient the property is.
- Other compulsory documents, such as an index of contents, a sale statement, local autority searches and evidence of title, copies of any planning permission, warranties and guarantees.
A voluntary component of the HIP is
a Home Condition Report or HCR, this is the survey element of the pack. If a seller includes a HCR included in their pack, the buyer can use this report as a survey and help keep costs down. Buyers may however choose to have their own survey done at their own cost.
The surveyors carrying out HCRs are impartial and monitored by a regulatory body.
For more information go to the governments official site - click here
Home Improvement
Home improvements are often carried out on a property in order to increase the market value of a property. Often extensions are added to properties through necessity, a growing family or a home office could be reason enough to extend your property. Extending can work out a cheaper option in the long run. Home improvements include anything from extensions, insulation, new windows to security such as an alarm or new garden fence. Decorating inside and landscaping the garden could help your property sell faster and possibly for more money.
With the rise in property prices you could have the option to release the equity you have in your property and use it to pay for all your home improvements. You could opt for a re-mortgage on your property to take advantage of any increase in its value, or you may wish to apply for a secured loan to fund any desired changes.
Household Insurance
A property's building and contents needs to be insured against loss, theft or damage. Household Insurance ensure that you have your proerty and it's contents covered. Insurance premiums cost can be relatively small when they are compared to the replacement cost of the items should they have not been insured.
Ensure that your policy covers your requirements and needs. Be aware of the claims procedures, any exclusions and aware of any excess you may have to pay.
Care should be taken to avoid action that may result in you not being insured especially in the case of home insurance. Household or buildings insurance is usually a requirement of any mortgage lender, as it provides security for the property and for the mortgage loan.
Homeowner Loan
A homeowner loan otherwise known as a "secured loan" is personal finance which is borrowed and then repaid over a set term. The home loan is secured upon property, usually your home, making it only suitable for people who own a property. Home owner loans usually come with lower interest rates than tenant loans because of the security they offer the lender. Failure to repay the loan in full could in time result in your property being repossesed by your lender, they would resell the property in order to recoup the debt they are owed. A Home owner loan costs you less overall because of the lower interest rates charged. The loans 'term' is the period of time over which the loan is taken out and then repaid. Many loans come established with set term periods, with shorter the term the higher the monthly payments will be, the longer the term the lower the monthly payments will be, but remember an extended term will result in more interest being charged in the long run. Loans advertised with set terms will usually display the loans overall cost to the borrower which makes comparing lenders easy.
If you have a poor credit rating due to a bad credit history you may find it hard to get a secured loan with a good interest rate.
