Key Terms
ASEW — Assessment of Mortgage Advice Knowledge
Advice process, client analysis, schemes, financial concepts and benchmarks.
Key Terms
- Fact Find — Collection of client financial information and objectives.
- Suitability Letter — Document explaining why recommendation is appropriate.
- Advised Sale — Mortgage recommendation based on assessment.
- Execution-Only Sale — Sale without advice or recommendation.
- Client Objectives — Customer goals and priorities.
- Needs Analysis — Assessment identifying customer requirements.
- Budget Planner — Tool assessing income and expenditure.
- Disposable Income — Income remaining after essential expenses.
- Debt-to-Income Ratio — Percentage of income used for debt repayments.
- Portability — Ability to transfer mortgage to new property.
- Offset Mortgage — Mortgage linked to savings reducing interest charged.
- Flexible Mortgage — Mortgage allowing payment variations.
- Shared Ownership — Part-buy, part-rent property scheme.
- Right to Buy — Scheme allowing council tenants to buy homes.
- Help to Buy — Government support scheme for home purchases.
- ISA — Individual Savings Account with tax advantages.
- Pension — Long-term retirement savings arrangement.
- Buildings Insurance — Cover for property structure damage.
- Contents Insurance — Cover for possessions within property.
- Land Registry — Official record of property ownership.
- Probate — Legal authority to manage deceased estate.
- Power of Attorney — Authority to act on someone else's behalf.
- Bankruptcy — Legal status of inability to repay debts.
- CCJ (County Court Judgment) — Court order against unpaid debt.
- Default — Failure to meet repayment obligations.
- Redemption Statement — Amount required to repay mortgage fully.
- Retention — Lender withholding part of loan until conditions met.
- Green Mortgage — Mortgage rewarding energy-efficient properties.
- EPC (Energy Performance Certificate) — Certificate rating property energy efficiency.
- Base Rate — Bank of England benchmark interest rate.
- LIBOR / SONIA — Interest rate benchmarks used in financial markets.
- Inflation — General increase in prices over time.
- Interest Rate — Cost charged for borrowing money.
- Capital — Original amount borrowed or invested.
- Depreciation — Reduction in value over time.
- Appreciation — Increase in value over time.
- Liquidity — Ease of converting assets into cash.
- Net Worth — Assets minus liabilities.
- Insolvency — Inability to meet financial obligations.
- Portfolio Landlord — Landlord owning multiple rental properties.
- Consent to Let — Lender permission to rent out property temporarily.