Freehold - Term meaning ownership of property
Freehold is the legal term used for the owner of property. Freehold means the consumer is the absolute owner of the property and the land it's on and has the deeds to the property. When the consumer has paid their mortgage loans off and no debt is left outstanding on it they would then have the freehold to their property.
Freehold Example - UK Mortgages
Once the mortgage is arranged, whatever the type chosen, and the exchange of contracts have taken place the mortgage broker takes possession of the freehold on the property. This is part of the lenders guarantee on the mortgage loan, and is one of the ways the lender has security on the finance lent. The customer then proceeds to make the repayments on their mortgage during its term. Eventually the customer will make the final mortgage repayment and the mortgage loan will be then completely repaid. When this is complete to both the lenders and borrowers satisfaction, the freehold will be signed over to the customer and then they will truly own the property and its freehold.
Mortgage Information.
When arranging a UK mortgage be realistic and honest about the ability to pay and if there is mortgage protection insurance it is always worth taking out even with the extra expense. With all mortgage repayments amounts being connected to the base rate of interest the repayments can both go up as well as down, depending on the type of mortgage customers have. Finally if the repayments can not be easily managed, do not take or use the UK mortgage.