Mortgage Loans

Application Fee

For processing your mortgage application and the administration involved in assessing the application. This fee is payable on submission of your mortgage application and is non-refundable if the Bank offers you a mortgage, even if the mortgage does not complete, or if you reject our offer.

 

Arrangement Fee

For the setting up of your mortgage. This fee is payable upon your acceptance of our offer and is non-refundable.

 

Bank

The Bank of East Asia, Limited UK Branch (operating through three branches in London, Birmingham and Manchester) - is a branch of The Bank of East Asia, Limited and its successors and assigns. References to "we", "us", "ours" etc. mean the Bank.

 

Bank's Base Rate

The Bank’s Base Rate from time to time in force as published in the UK Branch and online at the Bank's website which can be found here.

 

Early Repayment Charge (ERC)

An ERC is a charge you may have to pay if you repay the whole of your mortgage by paying it back early during a certain term. Any ERC payable will be explained to you at the mortgage application stage and will be set out in our offer to you.

 

Interest (see "Repayment" below)

The money you are charged for the mortgage.

 

Interest Rate

The rate of interest payable for the mortgage.

 

Margin

The fixed interest percentage that is added on top of the Bank’s Base Rate to determine the Interest Rate.

Mortgage

A loan which is secured against a property.

 

Mortgage Term

The length of time over which you agree to pay back your mortgage.

 

Principal (see "Repayment" below)

The amount you borrow to help you buy your property/refinance your property/as a further advance.

 

Repayment

Monthly repayments covering both the Principal and Interest - so by the end of the agreed term, the amount borrowed is repaid in full (providing all repayments are made in full each month).

 

Security

Legal charge over the property to protect the Bank in respect of the mortgage. The Bank can take possession and sell it if you do not keep up the mortgage payments.

 

Valuation

A basic inspection of the property conducted on our behalf to assess its value and whether the property is suitable Security for the mortgage.