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The Letter E
Saber Finance know the finance world is full of terms, phrases, buzz words and jargon.

On this page we explain,
Early Redemption Fees > Easement > Endowment Mortgage > Equity > Estate > Estate Agents > Event Loans > Excess > Exchange of Contracts > Exclusions > Existing Liabilities

Early Redemption Fees
Early redemption penalties are a mortgage penalty charge, usually associated with particular mortgages that provide some sort of interest rate protection. The fee comes about when the mortgage holders attempt to leave their mortgage early as in the case of re-mortgaging. Not all mortgage lenders and their packages have early redemption penalty fees.
The lender of the protected mortgage agrees to lend the mortgage with benefits to the borrower, but in return the borrower agrees to keep the mortgage for a minimum term. This term of agreement is usually indicated in the mortgage agreement. If the borrower wants to pay off their mortgage early or seeks to change lenders and re mortgage they could be charged a fee to do so, since they are breaking the agreement. The particular size of the redemption fee will vary between lenders but it will increase the cost of re-mortgaging.
Visitors interested in re-mortgaging could use our comparison tables or the remortgage best buys to find a new lender.

Easement
The term easement relates to an individuals legal rights involving a property. This pertains to rights over a property the individual does not personally own. There are two types of easement, positive and negative.
A positive easement is a right to do something on another person's property, and a negative easement is the right to prevent the owner of the property from doing something.

Endowment Mortgage
An endowment mortgage is a savings based mortgage with life assurance. The endowment mortgage was to work as follows, part of the monthly repayments paid the interest on the mortgage. The other part of the repayment was invested by the lender in the stock market. These mortgages were designed to allow holders to pay a smaller monthly repayment.
At the end of the mortgage term your invested amount should have be enough to pay off the remaining balance of the mortgage. However holders of many current endowment mortgage policies will have been notified that their final invested amount is unlikely to cover the final balance of their mortgage, leaving them with a shortfall they must provide.
It could be possible to sell the policy to another company and this is called surrendering the policy. There is also a lot of people taking legal action against the lenders who sold them the endowment mortgage, based on the belief they were ill informed of this type of mortgages pitfalls. If looking to take on a new endowment mortgage it is advised that time is taken to research all the conditions and to be aware of any pitfalls.
If you are a UK resident and want a mortgage, try our mortgage tools.

Equity
Equity is the difference between the amount outstanding on a mortgage loan and the current market value of the property.
If you have equity in your property you might be interested in releasing some or all of it to create finance. This process is called equity release. Equity release is creating finance from the value of a property or home without having to move out of it.
The most efficient way to release the equity from your home is to re-mortgage it, how this works is essentially you re-mortgage for more than you currently owe and use the remainder created as you see fit.
Another way to release equity from your home is to get a homeowner or "secured loan", the loan uses your equity as security. However a loan secured on your homes equity may only raise a small amount. This amount could be adequate for your needs, however there are secured loan products that permit finance at amounts greater than your homes available equity, this is dependant on the approval from the lender.
For those visitors interested in equity release we have a section on it.

Estate
An estate is the sum total of your assets, minus your liabilities. That is every thing you own, minus what you owe.
The only time you really need to know what your estate is worth is when you are compiling a will. It is a word that is used in all the legal terminology surrounding wills and tax planning.

Estate Agents
An estate agent is a professional employed to assist in the selling of property or to find property to purchase. The estate agent should be able to perform the more tedious and time consuming tasks involved in property buying and selling due to their experience and extensive contacts in the industry.
An estate agent should be able to assist in selling your property, by finding potential buyers and attending viewing's. When using an estate agent to assist with home buying the agent will have lists of property for sale in your area and in your price range. There are some standard tips that customers should be aware of and adhere to and estate agents should assist with.

Research the Market
What other properties are currently on the market in the area and how quickly they are selling? Compare the property to others on the market, use four or five in a local proximity, and calculate a reasonable price. A reasonable price will help the process move along.

Buying Property
Buyers Disposition
Be on time for viewing's and appointments and be interested in what the seller has to say, they will know the pros of the area. Remember you are in some ones home and always ask for permission before wandering around.
Befriend the Seller
You want to be on good terms with the seller, there will be a better chance of your offer being accepted if the seller likes you. You are also less likely to be gazumped if you meet the seller. The decor may not be to your taste but pointing this out may get the sellers back up, and you want to get them on your side.
Making an Offer
Before making an offer, be sure the property is what you are after and your finance is in place. Are you in a chain and will you be waiting for others to move before you can. Ensure you have visited the area at various times of the day, this will give you a better impression of traffic in the area, and ensure it meets your needs.

Selling Property
Sellers Disposition
Always be positive about the property you are selling otherwise the potential buyer may sense this. Have a good reason for selling and moving. Keep your cool, otherwise potential purchasers will be put off and may even put in an offer considerably less than the asking price.
Target the Buyers
If your property would suit first time buyers then target first time buyers, remember these people are just starting out on the property ladder and you may wish to consider including appliances, curtains and carpets in the asking price. Find out about local amenities and entertainment. You may not use or be interested in the amenities but your potential buyer might, and they can be a great selling point.
Presentation
Ensure the property is clean and tidy and then stage it to take advantage of its best features. Do not neglect the garden and the properties exterior, a buyer may not have time for these aspects at first and having them in a sound and pleasant condition is advised. Remember you are also part of the show so make sure you present the desired image.

Event Loans
An event loan is a personal loan arranged to help pay for an event or an occasion for which the funds aren't ready. You could require a operation but face a long wait on the NHS, arranging a personal loan could enable you to go private.
Arranging a personal loan to help pay for a event may at first seem strange, but sometimes waiting to save up just isn't a viable option. We can help you find and arrange a personal loan to pay for that occasion for when you just can't wait.
Try our event loan section for more info.

Excess
Excess is the term for a preset non recoverable insurance condition.
Excess is usually a set amount or a percentage of a insurance claim that the policy holder is responsible for paying. Excess exists to limit fraudulent claims and reduce the risk to insurers.
When taking an insurance policy out you enter into a legally binding contract, where you agreed to pay the first £X amount of any claim irrespective of blame. This is excess and it is an uninsured loss and has to be paid as a condition of any claims procedure.
When taking any insurance out you should make yourself aware of any procedures or conditions relating to the policy.
Need an insurance quote, try the insurance search directory and save time searching online.

Exchange of Contracts
This is usually encountered in property buying during the later stages when the price has been agreed and both parties are satisfied.
The exchange of contracts is the moment when the transfer of title and ownership happens. The contracts are exchanged between the seller and purchaser's solicitors and this results in both parties being legally bound to the sale. If there are any second thoughts about buying or selling your property, it is too late to back out once the contracts have been exchanged. This provides security and legality to property buying and creates an avenue for compensation in the case of a party pulling out of the deal.
At this point it is suggested the buyer obtains insurance for the building.

Exclusions
This is the term for any preset conditions not covered by a product.
Exclusions as they apply to insurance, are specific conditions that the policy does not offer cover for. There are always exclusions in an insurance policy. No policy can cover every possible event that might arise, so insurers put exclusions into a policy to limit their exposure to the risks being run so that they can measure and quantify the risks they are accepting.
For example, a health insurance policy could provide a temporary income if an injury is sustained. But if that injury was received whilst under the influence of alcohol the insurers may refuse the claim, if the policy excludes injuries suffered as a result of drinking or drug abuse.
When you agree to a insurance products cover, you enter into a legally binding contract with the insurer, where you agree to the exclusions and other conditions of the policy irrespective of any blame connected to a claim.
Need an insurance quote, try the insurance best buys.

Existing Liabilities
Existing liabilities refers to all the financial commitments currently held. Liabilities will include any credit cards, personal loans, maintenance payments, mortgages, etc.
Lenders will take these liabilities into account when they are evaluating an application for additional finance.
For example, you may have miscalculated the funds you have available and want to take advantage of a sale and purchase some item. Not having funds ready, you decide to apply for a personal loan. The loans lender will want to know of your existing liabilities to ensure you are capable of repaying on time and with out any defaults.
Searching for a loan, try the secured loan best-buy lenders, and save some time searching for finance online.

If you are in any doubt about any financial product or term we recommend that you seek advice from a financial advisor.

If you're after Finance Information, Saber Finance is here to help.