Financial Terms E

Early Repayment Charge: A fee charged if a borrower decides to move or pay off their mortgage before the end of an agreed term.

Endowment Mortgage: A mortgage with interest repayment and a separate monthly payment into an endowment policy designed to repay the mortgage at the end of the borrowing term.

Equity Release Scheme: A scheme which enables older homeowners to get a cash lump sum or income. Ownership of the property is transferred to the Release Scheme provider at the time of death.

Equity Withdrawal: If property prices increase, owners can take advantage of this by re-mortgaging their property in order to obtain additional cash from the lender. For example, if a house was purchased for £100, and subsequently increased to £130,000 in value, the lending institution would be willing to lend an extra £30,000 against the increased value of the house.

Estate Agent: A person or company whose business is the sale or lease of buildings or land on behalf of clients.