Adverse Credit Mortgage Glossary Part 1 (A-B)

If you are looking for an adverse credit mortgage, you will have already realised that there is a lot of technical jargon associated with adverse mortgages. Why not benefit from some of our considerable expertise and cast your eye over the first part of our glossary of terms associated with the adverse credit mortgage found below?

Glossary Part 1 (A-B) | Glossary Part 2 (C-I) | Glossary Part 3 (L-Z)

A
Adjudication An adjudication is an old-fashioned term used to describe bankruptcy
Administration Order An agreement between an individual and a county court. Within this administration order the county court agrees to help the individual make arrangements to pay outstanding debts, of up to £5000, to creditors
Adverse Credit Mortgage An adverse mortgage is designed specifically for those people who have had credit trouble in the past. Financial history that counts as bad credit includes:

  • Bankruptcy
  • Prior Mortgage Arrears
  • Non-payment of Rent
  • County Court Judgements
  • Individual Voluntary Arrangements
Adverse Credit Remortgage An adverse credit remortgage is the process of using a specific product to pay off one mortgage or a number of debts from the proceeds of a new mortgage. Usually, you will need to use your existing property as security
Annulment of bankruptcy This is a cancelled bankruptcy
Arrangement to pay An agreement between a lender and a customer to vary a customer’s payment schedule
Arrears Mortgage payments that have not been made by the due date in accordance with the mortgage deed agreed by the policy holder and the lender (this could also include rent, credit card payments, loans etc)
B
Bad credit mortgage Another term for an adverse mortgage
Bad Credit Rating A term used to describe a poor credit rating. Common practices that can damage a credit rating include making late payments, skipping payments or declaring bankruptcy. “Bad Credit” can result in being denied a mortgage
Bankruptcy This occurs when a person or a company is declared legally insolvent
Bankruptcy discharge When a debt is discharged, it is no longer personally enforceable against the debtor. Bankruptcy discharge may happen as quickly as 12 months after being declared bankrupt but the bankruptcy will stay on the credit rating record for a period of up to six years
Bankruptcy Order; This is a method employed for dealing with debts that cannot be paid. Bankruptcy proceedings free an individual from overwhelming debts
Base Rate An interest rate set by the Bank of England which reflects the cost of borrowing money from the money markets
Basic Annual Income The amount of money earned that is guaranteed regardless of the individual or the company performance

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