Mortgages

6. Mortgages

A. For the majority of homeowners/houseowners, the purchase of their property is financed by a mortgage. The bank or building society which lends its money to buy a property is called a mortgage lender/giver or mortgagee. The person who borrows money in the form of a mortgage is called a mortgage borrower/taker or mortgagor.

    There are several different types of mortgage in/on the market. Probably the most common is a repayment mortgage, in which the capital sum/capital price and the interest are paid in installments/ pieces over along period.

    An alternative is an interest-only mortgage, in which the interest is paid, and the capital sum is repaid / paid in another way, for example with an endowment assurance policy. This type of mortgage is known as an endowment mortgage.

    With an offset mortgage, the mortgage borrower’s daily/current account is combined with her/his mortgage. Provided the current account is usually in/with credit, this can reduce the interest repayment on/for the mortgage.

 

B.

1. repayment mortgage

a. the mortgage interest rate is linked to the interest rate of country’s central bank.

2. interest-only mortgage

b. the mortgage interest rate stays the same.

3. endowment mortgage

c. you pay the capital sum and interest.

4. offset mortgage

d. you pay the interest in installments, and you pay the capital sum by another method.

5. fixed rate mortgage

e. the mortgage interest rate can only rise as far as a certain level.

6. base-rate mortgage

f. an interest-only mortgage, with the capital repaid by an endowment.

7. variable rate mortgage

g. you current and mortgage accounts are combined to reduce the interest.

8. capped mortgage

h. the mortgage lender can change the interest rates as they wish.

 

C.

1. house, bungalows, apartment, offices, shops, and any other type of building you can own are called .

a. housing                       b. property            c. buildings

2. The are a document which proves who owns a property.

a. owner’s deeds                 b. owner’s papers       c. title deeds

3. In some countries you can get a mortgage for   your annual salary.

a. times five                     b. five times            c. five of

4. If a mortgage borrower    the installments…

a. does not pay                   b. defaults on           c. fails on

5….the mortgage lender will eventually    the property.

a. retake.                        b. take back            c. repossess

6. Before a property can repossessed, the lender must apply to a court for a .

a. repossession order          b. repossession paper       c. repossession document

7. When the lender has a repossession order, the occupants of the property can be.

a. evicted                     b. put out                  c. ejected.

8. Generally, mortgage lenders only repossess as.

a. a desperate action           b. a last resort              c. the final option

9. A mortgage lender can also be called a mortgagee or a

a. mortgage provider           b. mortgage maker          c. mortgage producer

10. A mortgage borrower can also be known as a mortgagor or a

a. mortgage owner            b. mortgage possessor        c. mortgage holder

11. to change your mortgage agreement is to your property.

a. mortgage again             b. remortgage               c. unmortgage

12. a mortgage paid over 25 years is called a mortgage

a. 25                         b. 25 year                    c. 25 years

13. When somebody’s mortgage is the most they can possible afford, you can say they are “mortgage up to the”.

a. hilt                          b. top                     c. head

14. If property prices go down, and you house is mortgaged for more than its current value, you have .

a. negative money               b. negative value            c. negative equity

15. After you have paid your last mortgage installment, you can say that you have your mortgage.

a. paid out                     b. paid up                   c. paid off

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