Get the mortgage lingo

Understand what it all means with our simple explanations

What do all these terms mean?

Mortgage:         This is a loan secured on your property. Your solicitor ensures that you are registered as the owner of the property and that your financial institution has a charge over it. When your loan is repaid the charge is taken off the title deeds.

PRSA:       This is a personal retirement savings account and is a tax efficient method of planning for your retirement.

Life Assurance:    This is a policy put in place so that the mortgage is repaid in the event of your death. Your financial institution will require sight of this policy before they draw down your mortgage.

Home Insurance:     This policy protects your house against fire, theft or other unforeseen events. Your financial institution will require sight of this policy before they draw down your mortgage.

What are all these forms I sign with my solicitor?  

Letter of Offer:  You may either sign this with your solicitor or your financial institution. It is in a prescribed format and must set out basic details about your mortgage. You are advised to read it carefully.

Undertaking:  This is where you authorise your solicitor to register the property in your name and register the financial institution’s interest in the property.

Cheque request:   This is the form used for your solicitor to formally request your cheque from the financial institution.

Mortgage deed:   This is the document that is used to register the financial institution’s interest in the property. When the mortgage is repaid it is then “vacated”.

Assignment of Life:  This is where you give your financial institution an interest in your life assurance policy so that they are guaranteed to be repaid from the proceeds of your policy in the event of your death.

There will also be other forms to be signed but your solicitor will explain what these are about. Do not be afraid to ask if there is anything you need more advice on