Financial Adviser: An individual who advises and helps clients with financial issues.
Financial Ombudsman Service (FOS): Provides consumers with support in resolving disputes involving financial services. Established by the Government, it gives independent advice on complaints in areas including banking, investments, insurance, mortgages and pensions. Decisions made by FOS regarding disputes are not legally binding unless agreed by both parties.
Website: www.financial-ombudsman.org.uk
Financial Services Authority (FSA): This independent organisation regulates the UK’s financial services industry, including mortgage lenders and brokers. Any organisation regulated by the FSA is legally bound by its rules. The three main aims of the FSA are to promote efficient, orderly and fair markets, assist retail consumers in achieving a fair deal and improve business capability and effectiveness.
Website: http://www.moneymadeclear.fsa.gov.uk/
Financial Services Compensation Scheme (FSCS): This is the fund of last resort for customers of authorised financial services companies. The FSCS can provide compensation if a company is unable to meet the costs of claims made against it. The FSCS is funded by levies on authorised firms.
Website: www.fscs.org.uk
First Charge: A legal charge used to secure a mortgage. A lender with a first legal charge over a property has the first call on any funds made available from the sale of the property.
First Time Buyer: A buyer that is purchasing a property for the first time. Some lenders offer preferential lending terms to first time buyers. In recent years, it has become more difficult for first time buyers to get on the property ladder. See – House Price Income ratios for first timebuyers -
http://www.mortgageguideuk.co.uk/first_time_buyers/mortgage-income-ratios.html
Fixed Rate Mortgages: A mortgage where interest payments are fixed for a certain time period, e.g. 2, 5 years. The rate payable will not change during that period regardless of changes in the lender’s standard variable rate.
Fixtures and Fittings: Carpets, curtains, light fittings, etc. may be included as part of the house sale. Thses items are termed “Fixtures and Fittings”.
Flexible Mortgages: Flexible mortgages are offered by some lenders. These allow overpayments in order to repay the mortgage early.
Forbearance: Action taken by a lender to delay foreclosure or legal issues with a defaulting borrower.
Foreclosure: A foreclosure takes place when a mortgage borrower cannot make principal and/or interest payments on their loan, typically leading to their property being seized and sold.
Foreign Currency Mortgage: It is now possible to obtain a mortgage loan for property in the UK in a foreign currency. It can provide a borrower with an opportunity to borrow money at a lower rate of interests than those available in the UK.
Forfeiture: A process whereby a delinquent borrower surrenders their property rights.
Freehold: Land or property which is owned outright. The owner has the right to occupy the land or property indefinitely.
Full Structural Survey: A comprehensive survey carried out property. It is advisable to have a full structural survey completed when buying an older property.