Glossary

European Central Bank. The bank who decide what rate which will be applied to interbank lending, this is the rate which directly effects the rate of your loan.

An interest only mortgage, which requires an endowment policy to be assigned to the lender (these policies have come in for criticism in the last few years, homeloans do not process endowment mortgages).

A combined life assurance and investment policy. Premiums are paid by the borrower to a life assurance company, usually monthly. Homeloans does not recommend this type of mortgage, as the policies often don’t have an ability to repay the mortgage.

The difference between the value of the property and the amount of any loan secured against it.

Work required to be carried out on the property, this may appear in your valuers report.

Outright ownership of the property and the land on which it stands.

An additional loan by the lender to the borrower, which may be for any purpose and secured by the existing or a second mortgage deed.

When an offer, having already been accepted by an auctioneer or a vendor (seller) but before contracts are exchanged, accepts another, higher offer from someone else.

An annual charge payable by leaseholders to the landlord.

A person who promises they will pay the borrower's debt.

A certificate issued by the National Home Builders Guarantee Scheme Ltd. (see above)

This scheme was established by the Construction Industry Federation and the Irish Home Builders Association, in conjunction with the Department of the Environment. It ensures that proper building standards are maintained and protects purchasers by underwriting any major structural defects. Homebond provides a ten-year warranty for structural defects to new properties built by registered builders. Under the scheme builders and developers register properties with Homebond and pay a fee for each of them. The buildings are inspected by Department officials during construction and when everything is completed satisfactorily, a certificate is issued. This certificate more or less guarantees the property for up to ten years against major structural faults. Should a fault or defect occur, the builder or developer is responsible for rectifying it. Homebond has a complaints scheme for non-structural defects in new houses, arising within a year of buying the house with effect from 1 January 2001. Non-structural defects covered under the scheme include leaky plumbing, uneven flooring, breaches of fire requirements such as smoke alarms and lack of insulation. The register of builders is available in local libraries, building societies and local authorities. Buyers should check that their particular builder or developer is registered. If a problem arises, the buyer must notify the builder in writing. If the builder fails to rectify the problem, Homebond will mediate and possibly refer the issue to arbitration.