Glossary > The Letter F

A >B >C >D >E >F >G >H >I >J >K >L >M >N >O >P >Q >R >S >T >U >V >W >X Y Z

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

On this page we explain,
Fee Based IFA > Feuhold > First Time Buyer > Fixed Rate Mortgage > Flexible Loans > Flexible Mortgages > Flying Freehold > Freehold > FSA > Further Advance

Fee Based IFA
A fee based IFA, is a fee charging independent financial advisor. Most financial advisers earn their living from taking a commission from the products they sell, this commission must be disclosed to their clients. An IFA can offer clients products from a whole range of lenders, as opposed to a tied agent who is connected to or "tied" to a single lender and their products.
There have been concerns raised that advice from IFA's or tied agents are driven by their need to earn commission. This is believed to have happened in the past, with borrowers and investors being badly affected.
So to be seen as even more up front, some independent financial advisers offer their services much they same as other professionals. They charge by the hour or agree a single fee up front with any commission rebated.

Feuhold
Feuhold is found in Scotland, and is similar to a freehold. This term is used for the owner of property and its land, meaning you are the absolute owner of the property and the land it's on and have the deeds to the property.

First Time Buyer
A person or couple after their first home and so their first mortgage are called first time buyers. A first time buyer has no pre-existing equity in property so the size of the mortgage available could be restricted.
There are first time mortgage packages available that are aimed at buyers new to the complexities of the property market, which include enhanced help and assistance with the legal side of property buying.
Step One
For first time buyers the first step towards purchasing a home is to find out how much can be borrowed for a mortgage.
Step Two
The second step is to find a sound property to purchase, whether the buyer decides to use an estate agent or proceed alone the property will need to be in their price range.
Step Three
The third step is to formally make an offer to the seller for their property and this is done using solicitors acting for both parties.
Step Four
The fourth step involves the exchange of contracts for the property with the buyer then becoming the home owner.

Deposits Save You Money!
First time buyers should be aware that it is beneficial to have the largest down payment you can manage to save toward the properties value. This down payment or deposit does not cost you interest. Most lenders prefer to lend you a percentage of the value of a property rather than 100%, that way should you not keep up repayments they can take procession of the property and sell it for a profit. A lender is legally within their rights to repossess your home if you continuously fail to make monthly payments.

If you want more information try our mortgage section, or if you are searching for mortgage lenders use the mortgage lenders best buys.

Fixed Rate Mortgage
A fixed rate mortgage is a mortgage which has a set interest rate for a pre-determined term. With the fixed rate mortgage the interest rate is set for the entire period of the term, the advantage of this is that it enables the mortgage holder to know the exact amount they will be paying during this set duration. The disadvantage of the fixed rate mortgage is that if interest rates fall the customer will still be paying repayments at the pre-agreed rate.
Their are many reasons for taking on a fixed rate mortgage, one possible reason is for budgeting. If a borrower has strict financial constraints upon them, knowing precisely the mortgage premium amount required will allow them to budget accurately and accordingly.
The property finance section has more information for visitors.

Flexible Loans
Flexible loans act as a drawing account on which you may borrow money has you require. Your bank or lender will agree a credit limit, or maximum loan, for the flexible loan against which you may borrow. You can then use as much or as little of the money as you want. Unlike other loan finance, with a flexible loan you are only charged interest on the outstanding balance each month.
What flexible loans offer is the ability to re-borrow money that you have re-paid, should an unforeseen emergency require you to do so without having to first arrange fresh loan finance. Flexible loans can be suitable for you if you have a varying income, like the self employed, thus allowing you to pay extra off the balance when possible.
Looking to borrow money? Want a loan? Try our loan tools, or find lenders loan products.

Flexible Mortgages
A flexible mortgage is a mortgage that allows the flexibility of repayments and the repayment amounts. Normally, a borrower with a flexible rate mortgage will be allowed to overpay, underpay or take payment holidays. It might be possible to offset savings against the mortgage to help with the flexible rate mortgage premium repayments.
Certain flexible mortgages will even offer daily interest rates so any overpayments made will show benefit straight away. Some if not most flexible rate mortgages will require that an overpayment is made before an underpayment or a payment holiday would be acceptable.
The advantage of the flexible mortgage is that if you encounter some unforeseen financial problem, you could pay less or even temporarily cease mortgage payments while you deal with the emergency. And then you would be free to catch up with your repayments.
Searching for a uk mortgage? Use the mortgage tools to find mortgage lenders.

Flying Freehold
A flying freehold is a term used to describe a part of your property which is built above land which is not part of the property you own.
A bedroom built over a communal driveway could be described as a flying freehold.

Freehold
Freehold is the legal term used for the owner of property and its land. Being the freeholder means you are the absolute owner of the property and the land it's on and have the deeds to the property. When a mortgage has been paid off and no debt is left outstanding on it they would then be given the deeds and thus the freehold to their property.
If you are a freeholder and are after raising finance, try our equity release section.

FSA
FSA stands for the Financial Services Authority.
The FSA regulates banks, building societies, credit unions, insurance, investment firms and independent financial advisers. In addition to the authorising and monitoring of these financial services, it has enforcement powers to investigate, discipline and prosecute. The FSA is able to impose fines on anyone who abuses their position within these services.
The regulator has specific responsibilities to consumers, aiming to help people become better informed about financial matters so that they can manage their finances more effectively.

Further Advance
A further advance is an additional loan by a finance lender to an existing borrower. The further advance can be at the same rate as your initial loan but this is subject to status and the lenders conditions.
Seeking further finance? Use our loan tools to find a cheaper lender.

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.