Early Repayment Charge (ERC)
A sum of money (a penalty) paid by the borrower for paying off the mortgage before the agreed term expires. Also known as Early Redemption Charge

Early Redemption Charge
See Early Repayment Charge (ERC)

Easement
Third party right to access or to use the land/property for a specific purpose, for example, a right of way.

Employment Status
A term used to identify whether the person is employed or self-employed.

Endowment(Mortgage)
A type of financial product allowing the borrower to invest a set amount of money on a monthly basis for a set period of time, the proceeds of which are to be used to repay the mortgage at the end of its term.

Engrossment
A legal document ready to be signed and sealed once the final draft has been agreed by all the interested parties.

Equity
Also known as capital. Current market value of the property less outstanding mortgage.

Equity Release
A way of accessing capital tied up in a property with no outstanding mortgage whereby an agreed percentage of the property value is released to the property owner by the lender in exchange for a share of the property sale proceeds upon the property owner’s death.

Equity Release scheme
A financial product allowing more mature home owners (usually 60 and over) with no outstanding mortgage to exchange a percentage of future sale proceeds for a lump sum on money.

Estate
A legal term describing the total amount of assets (property and personal) of a deceased.

Estate agent
A person or company dealing with sale and/or lease of property and/or land on behalf of others in exchange for commission.

Estate Agent's Code of Practice
A set of rules (binding only for members of Ombudsman Estate Agents as this area is not regulated) promoting minimum standard of service.

Eviction
A process defined by law allowing the landlord to expel his tenant from the property.

Examination of Title
A process of checking the property deeds.

Excess
An agreed amount of money paid by the insurance policy holder upon the insurance claim.

Excess Payments
Additional payments towards the mortgage. Certain lenders may charge for extra payments or limit the amount that could be paid in a certain period of time or frequency of payments.

Exchange of Contracts (excludes Scotland)
The date in the property purchase process when the contract becomes binding and whereby the deposit is paid to the sellers and a purchase completion date is entered on the contract (with some exception).

Execution
The process of signing and sealing of the legal document (deed) in front of independent witness.

Existing Liabilities
One’s financial obligations such as mortgage, loan, credit and store cards, hire purchase and rental agreements, child maintenance, etc.

Expatriate
A term referring to a person who resides (for a short period or permanently) in a country which he is not a national of and/or was not born there.

Back to top