Negative equity
Term used to describe the circumstances when current property value’s less than the outstanding balance on the mortgage loan. This happens when there is, for example, a sharp fall in prices of the houses. Some lenders, however, offer schemes to assist with negative equity, especially for existing customers who have satisfactory payments record.

Net pay
A term that refers to the amount of money (income) that is left from one’s gross salary once all tax has been taken off.

Net profit
A term that describes company’s or self-employed total remaining profit once tax and relevant expenses such as overheads, interest, etc have been taken off.

Net worth
Often referred to as wealth, a terms that describes one’s financial circumstances, ie total value of one’s assets less total value of one’s debt.

New-Build
A term that refers to one property or the housing estate that has just been built and have not been lived in yet.

New instruction
A term used by the estate agents to describe a newly received request to sell and/or let the specified property.

NHBC scheme (National House-Building Council)
A national UK body, originally set up as the National House-Builders’ Registration Council back in 1936, that sets the standard for the new-build properties as well as newly converted UK properties. It is also the national leading provider of warranty for the new-build properties that offers protection to its purchasers.

No Capital Raising
A term used in the remortgage process where a new loan is to the exact same amount as an existing one. Thus no extra cash is released upon completion of remortgage.

No Income Verification
An instance when lender does not require a prospective borrower to provide evidence of income. Please also see Stated Income.

No/Low Fee Mortgages
A type of mortgage that offers full or partial reimbursement of such fees as valuation, booking and/or arranging fee to the borrower. It is sometimes referred to as Fees Free mortgage.

Nominal Interest Rate
Often referred to as an Applied Interest Rate. A rate of interest which is used to work out the interest that is due.

Non Contributory Pension
A type of pension scheme where the person who is to benefit from (employee in this case) does not pay any contributions. It is his employer who makes regular payments towards their employees’ pensions.

Non Status (Loan/Mortgage)
A type of mortgage where a decision to grant loan is made without checking the applicants income and/or credit history.

Notice Of Default
A document given by lender to borrower who failed to keep up with his repayments. This notice requests for the monies along with legal fee to be paid within the set period to avoid further action. It is the first stage in the process of recovering outstanding debt. Failure to take prompt action may lead to repossession.

Back to top