Glossary > The Letter H

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

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.
The HLC is a fee charged by a mortgage lender, for when an amount borrowed for a mortgage exceeds a set percentage of the properties value. This fee is used by the lender for an insurance policy designed to protect against loss, in the event of defaults. The HLC fee may be insisted on by the lender at the start of the mortgage loan.
The threshold for HLC fees is typically 75% of a properties value and is charged at about 8% of the mortgage amount over the threshold.

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. 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. The finance company have a security interest in the goods until all the amount owed by the customer is repaid.
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 charged. The repayment history on hire purchase products will form part of credit scores and a low credit rating could affect the ability to successfully apply for further credit.
When signing any credit agreement be aware of any obligations and conditions in the small print of the policy.
Information on the forms of consumer credit can be found in our personal finance section.

Holiday Loan
A holiday loan is finance raised for a specific event, that of a holiday. Perhaps you are wanting to go on that once in a lifetime holiday and give yourself a rest from work or studying, the finance may not be in place but with a personal loan the trip is as good as paid for. Maybe travelling around Europe for a year appeals, perhaps on a gap year from college or university studies, parents could use the money from a event loan to give offspring a holiday to remember. How about a safari in Africa looking at the wildlife, or a second honeymoon? A personal loan could help you get away from it all.
Need a loan? Look at our loan tools and find a cheaper personal loan.

Homebuyers Report
The homebuyer report is a service currently paid for by a property buyer, used to gauge the condition of a property. The homebuyer report's service involves a surveyor visiting the property and inspecting it. The surveyor will only inspect those areas of the property that are reasonably accessible or easily visible. Then the surveyor will then write a report on the property condition, as well as performing a basic valuation on the property which is used in conjunction with the mortgage application.
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 but the content should be similar and cover these basic points.

General Condition
This will cover the interior and exterior of the building and the local vicinity of the property.
Major Defects or Positive Attributes
Particular emphasis will be placed on any particular features that may affect either the present value, or the ability to resell or re mortgage the property.
Maintenance Recommendations
This section of the report will draw attention to any work that will need to be done either immediately or in the relatively near future to the property.
Legal Guidance Issues
Any points and issues with the property that should be discussed with the solicitor.
Matters of Further Relevance
The surveyor will mention anything that they feel is helpful and constructive, as well as pointing out any things that may require further investigation.
Basic Valuation
The surveyors opinion of the properties current market value.

A homebuyer's report can usually be arranged by the mortgage lender in conjunction with the valuation report. If you wish to instruct a surveyor separately, this could be a cheaper option. You can find a whole host of surveyors on the web or in any local directories and they are easy to find and use.
When HIP or home information packs arrive, it is considered this report will be sanctioned by the seller and form part of the pack as a HCR.

HIP
The HIP or the Home Information Pack is due to be introduced June 2007, it is intended to make property transactions less expensive and easier for both seller and buyers. The cost of producing a HIP is borne by the seller, and many hope the packs will shorten the time taken to complete the property transaction.
The Home Information Pack will include the terms of sale, evidence of title, replies to enquiries from any buyers, copies of any planning, listed or building regulation decisions and copies of any relevant warranties and guarantees. The HIP will also contain items usually provided by buyers and their agents, such as replies to searches made of the local authority.
A Home Condition Report or HCR, is the survey element of the pack and is only voluntary. If an HCR is included in the pack, the buyer can use this report as a survey and help keep costs down.
The surveyors carrying out HCRs are impartial and monitored by a regulatory body. If potential buyers wish they are entitled to have a separate survey of their own carried out at their own cost.

Home Improvement
Home improvement is when home owners perform work on their property that improves the market value of the property. Investing capital in your home could be a valid alternative to moving, and need not cause upheaval. If your family is growing having an extension built will not only provide extra living space, but it could also add thousands of pounds to your properties value. Home improvement could be perform as a way of making property more secure as in the case of fencing, alarms, exterior lighting and plastic windows. If you are looking at moving house and are going to put yours on the market a few thousand pounds spent landscaping the garden and decorating inside and the outside could help the house sell faster if not also for more money.
With the boom in property prices there is a chance you could have equity in your home and if you release it you will have finance available to use on your current home for improvements. You could opt for a re-mortgage on your property to take advantage of any increase in its value. You may wish to apply for a secured loan to fund any desired changes which should be considerably cheaper than using credit facilities offered by any firms you use for the improvements.
If you require equity release try our section on it.
After finance for home improvements loan lenders can be found in the secured loan or the best buy comparison tables.

Household Insurance
Household insurance is cover for buildings and their contents against loss, theft or damage. The insurance premiums cost is extremely small when it is compared to the replacement cost of the insured items should the unexpected happen and a claim become due.
When taking a insurance policy out you should always ensure that your policy covers your requirements and needs. Be aware of the claims procedures, aware of any exclusions and aware of any excess. For any claims the advice is simple, follow the instructions of the insurer or policy broker. They are trying to provide the best service in your best interests.
Any exclusions should be noted and care taken to avoid action that may result in you not being insured especially in the case of home insurance. For any excess you should be aware of how much it is. Household or buildings insurance is likely to be a requirement of any mortgage lender, as it provides security for the property and for the mortgage loan.
For home insurance try our insurance tools, if you are looking at saving money our best buys will suit your pocket.

Homeowner Loan
A homeowner loan or "secured loan" is personal finance which is borrowed and then repaid over a set term. The home loan is secured upon the property, usually the home, making it only suitable for visitors who own a property. Home owner loans are usually given better rates than tenant loans because of this security and generally cost less overall. 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 higher monthly repayments for shorter terms and lower repayments for longer terms. Loans advertised with set terms will usually display the loans overall cost to the borrower which makes comparing lenders easy.
The homeowner loans rate would still be dependant on your credit rating and history, which could cause issues if you have a problem credit rating.

Loan Tools and Application Forms
For more information try the home loans section in our personal finance section.
We have plenty of loan tools to shorten your search for cheaper loan finance. Want to compare lenders try the search directory or the secured loan best buys. If loan repayment size is more important to you try the payment calculator which will display repayment amounts. If you have problem credit fill in an application form and the independent advisor will find the best secured loan they can for your situation.

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.