Failed valuation survey
A property report undertaken by the lenders surveyor concluding that the property is worth less than the purchase or remortgage amount.
Fair Market Value
A property sale price representing a fair reflection of the similar properties sale prices in the same location.
Fee
A set amount of money paid to a broker, financial advisor, lender, etc for their services in arranging a financial product.
Fee Simple (Scotland only)
In Scottish law, a type of property, where the owner has a right to decide who is to inherit his property without any restrictions.
Fees Free
Term referring to the remortgage product where lender offers to pay legal and mortgage valuation costs.
Financial Adviser
A qualified professional providing a variety financial services.
Financial Ombudsman Service (FOS)
Free independent expert service established by government dealing with consumers? complaints against the organisations providing financial services.
Financial Services Authority (FSA)
An independent organisation responsible for regulating most of the financial services (some buy to let mortgages as well as general insurance are excluded).
First Charge
Also see Second Charge
A right determined by law where a lender holding the first charge on the property has priority over others to benefit from the sale proceeds in the event of repossession.
First Mortgage
A mortgage that has priority in the event of repossession.
First Time Buyer (FTB)
A person who has never been a property owner and is going through the process of purchasing his first property.
Fixed Rate
Also see Fixed Rate Mortgage
A rate of interest that stays the same for a set period of time.
Fixed rate mortgage
A rate of interest that stays the same for a set period of time notwithstanding any changes in variable rates.
Fixtures & fittings
Items that form part of the property and included in sale, such as built-in ovens, baths, sinks, curtain rails, etc
Flat Buyer's Report
See Home Buyers Report
Flat over Shop
An apartment/flat that is situated straight above the retail premises. As it could be seen as having less appeal to prospective buyers and more difficult to sell, not all lenders are keen to offer mortgage on this type of property.
Flexi
Common abbreviation for Flexible Mortgage.
Flexible Drawdown
An option offered on some mortgages facilitating access to additional funds.
Flexible Mortgage
A type of mortgage loan that allows for extra payments and/or payments breaks without attracting
a penalty.
Flying freehold
A part of property that overhangs another property and/or land.
Forbearance
Lenders? right to delay starting a legal process against the borrower who defaulted on a loan.
Foreclosure
Legal process by lender against the borrower defaulting on his loan.
Foreign Currency Mortgage
A mortgage in currency other than pounds that represents higher risk to both lenders and borrowers due to fluctuating exchange rates.
Forfeiture
Circumstances when borrower, having defaulted on his loan, decides to surrender his right to property.
Freehold(England & Wales only)
The best possible type of property ownership whereby the whole of the property is owned without any time restrictions as opposite to leasehold property where the owner leases the property for an agreed period of time.
Full Structural Survey
Also see Structural Survey and Building Survey
A very detailed (comprehensive) survey of the property that is to be purchased, remortgaged or structurally altered. Usually recommended when buyer older properties.
Further Advance
A sum of money released by existing lender to the borrower against the property value typically used for home improvements or debt consolidation. Main loan and further advance form part of the first charge on the property.
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