6. Mortgages CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

CHECK YOUR ENGLISH VOCABULARY FOR BANKING AND FINANCE

6. Mortgages

A. Choose the best words from each pair in grey type. For the majority of 1 homeowners / houseowners, the purchase of their property is financed by a mortgage. The bank or building society which lends the money to buy a property is called a mortgage 2 lender / giver or mortgagee. The person who borrows money in the form of a mortgage is called a mortgage 3 borrower / taker or mortgagor. There are several different types of mortgage 4 in / on the market. Probably the most common is a repayment mortgage, in which the 5 capital sum / capital price and the interest are paid in 6 instalments / pieces over a long period (for example 25 years). An alternative is an interest-only mortgage, in which the interest is paid, and the capital sum is 7 repaid / paid in another way, for example with an endowment assurance policy (see unit 9). This type of mortgage is known as an endowment mortgage. With an offset mortgage, the mortgage borrower's 8 daily / current account is combined with her/his mortgage. Provided the current account is usually 9 in / with credit, this can reduce the interest repayments 10 on / for the mortgage. B. Match the types of mortgage with the definition (you can find some of the information above). 1 repayment mortgage a The mortgage interest rate is linked to the interest rate of country's central bank (see unit 16). 2 interest-only mortgage b The mortgage interest rate stays the same. 3 endowment mortgage c You pay the capital sum and the interest. 4 offset mortgage d You pay the interest in instalments, 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 tracker mortgage f An interest-only mortgage, with the capital repaid by an endowment (see unit 9). 7 variable rate mortgage g Your current and mortgage accounts are combined to reduce the interest. C. Choose the best word. 1 Houses, bungalows, apartments, 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 instalments… A doesn’t pay B defaults on C falls on 5 …the mortgage lender will eventually __________ the property. A retake B take back C reposses 6 Before a property can be 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 unmortage 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 "mortgaged up to the __________". A hilt B top C head 14 If property prices go down, and your 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 instalment, you can say that you have __________ your mortgage. A paid out B paid up C paid off

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