Discounted rate mortgage
Mortgage which offers discount off the lender's variable rate.

Daily Interest
A rate of interest that is calculated every day as opposite to every month.

Daily Interest Mortgages
A type of mortgage with a rate of interest calculated every day as opposite to every month.

Data Protection Act (1988)
Legislation introduced to ensure that personal records held by third parties are protected from misuse while allowing individual access to the information held by the third parties.

Debt
A sum of money that is owed to another person, organisation, etc.

Debt Consolidation
The process of obtaining a loan with the purpose of paying off the existing loans and lowering monthly outgoings by reducing the rate of interest paid on outstanding loans or by agreeing to repay over the longer period.

Debt-To-Income Ratio
A formula used by lenders to ascertain financial eligibility of the applicant.

Deed
A legal document confirming the property ownership.

Deed Of Covenant
A legal document that represents a binding agreement imposing certain restrictions on the use of land and/or property.

Deed Of Proxy
A legal document authorising one party to deal with other party’s financial and legal matters.

Deeds Release Fee
A set amount of money payable to the lender on completion of term of mortgage in exchange for the documents pertaining to the property (Title Deeds).

Default
Non-payment of due amounts on outstanding debts, such as mortgage, loan, credit and/or store cards. A record of this may stay on one’s credit file for up to six years and may effect future credit eligibility.

Default Notice
An official letter sent by the creditor to the borrower who failed to pay the amount due advising of the breach of credit agreement and seeking immediate action to avoid County Court application.

Deferral Period
A set period of time when no repayments are made on a mortgage, loan, etc. Student/graduate loans offer this option to allow the student to complete their studies as well as ‘buy now pay nothing for the first 12 months’ purchase offers.

Deferred Interest
A loan that provides for the percentage or the whole of the interest to be added to the outstanding balance.

Deferred Interest Mortgage
A mortgage that allows for the percentage or the whole of the interest not to be paid for a limited period only.

Deflation
Decrease of prices and the actual quantitative value of money as opposite to inflation.

Delayed completion
17Completion can take place any time after exchange of contracts. However, if it is longer than 28 days it is referred to as delayed. An instance when the actual completion of the property purchase or sale takes place 28 days or more after the contracts have been exchanged.

Delinquency
Failure to make a payment on the prescribed date.

Delinquent Loan
A loan becomes delinquent when the borrower systematically fails to keep up with payments.

Dependant
A person who relies on someone else for support, financial or otherwise.

Deposit
With regards to the mortgage, a sum of money the purchaser has to pay (excluding mortgage loan) towards the property purchase. Usually paid to sellers upon exchange of contracts.

Deposit-based Savings
A type of savings scheme that offers regular dividends dependent on the sum of money invested at the agreed rate of interest (usually variable).

Depreciation
A term referring to the circumstances when property value falls as a result of general decrease in property prices on the market as opposite to the appreciation.

Despatch Fee
Please refer to Deeds Release Fee

Detached
A type of property that does not share any of its walls with other properties.

Development
A term referring to the property that has just been built or the one that has been fully modernised and refurbished.

Dilapidations
A term referring to damage the property has suffered or defects (disrepair) requiring attention.

Direct Debit
A type of payment method whereby an agreed amount is taken from one’s nominated account on a regular basis as agreed, for example every month or every three months. The amount could be fixed, for example, payment in respect of council tax, or variable, for example in respect of a telephone bill.

Direct Lenders
Type of lenders who do not have branches to operate from. They conduct their business via call centres, internet or mailing houses.

Disbursements
Expenses associated with the property purchase process such as search fees, stamp duty, land registry fee. These are usually paid on buyers’ behalf by their legal representatives and exclude the actual legal fees.

Discharge
A term referring to final settlement on one’s mortgage loan.

Discharge Fee
A sum of money, often referred to as Deeds Release Fee, payable to lender at the end of mortgage in respect of lender’s administrative overheads.

Discharged Bankrupt
A person who, having completed his bankruptcy period, is not barred from applying for credit.

Discharged CCJ
Judgement by the County Court which was duly paid (discharged).

Disclaimer
A term referring to party’s notice in writing discharging them of any liability for providing inaccurate information.

Discounted Period
A term referring to a period of time when discounted rate of interest is applicable. This period could be anytime from 6 months to some years as agreed.

Discount Purchase Price
A special property offered by the local authority under the ‘right to buy’ schemes and/or by the builder for the new-build properties. Such price is often below the current market value. Under the ‘right to buy’ scheme the buyer may lose all or part of their discount if the resell their property within the agreed period.

Discount Rate
A type of interest rate on a mortgage that is usually fixed for a period of time only below lender’s standard variable rate, or LIBOR rate or Band of England Rate.

Distance mortgage mediation contract A type of mortgage contract that is taken by way of telephone, fax, e-mail or internet.

Diversification
A term referring to the advantages of having various types of investments, such as a ratio of shares, deposit based investment, property portfolio, etc. However, the actual fund performance of various investments cannot be guaranteed.

Draft Contract
A contract at its initial stages that has neither been agreed, signed or exchanged.

Draw Down Facility
An option offered by certain mortgage loans, such as flexi mortgages, that allows the borrower to borrow more funds against their property up to agreed limit.

Durable Medium
A concept applicable to the way documentation could be used. It enables the said document to be used by the recipient, information could be reproduced without any changes and/or stored and used for future reference.

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