Leeds Building Society
Leeds Building Society is the fifth largest in the United Kingdom based in Leeds, England. It serves 719,000 customers across the UK who together hold £9.9 billion in savings balances. In 2015 their average interest rate paid to savers was 1.78% and their net mortgage lending was £1.4bn. The society was registered as the Leeds and Holbeck Building Society in 1875, though the society originated from a group called the Leeds Union Operative Land and Building Society which formed in 1845; the society was renamed to Leeds Building Society in September 2005. It has 65 branches across the UK, with 29 located in Yorkshire and it has a branch in Gibraltar and a branch in Dublin, its head office is located on The Headrow in Leeds city centre. It should not be confused with the defunct Leeds Permanent Building Society, known as The Leeds, merged with the Halifax Building Society on 1 August 1995. In July 2006 Leeds Building Society was voted "Best Building Society" by Mortgage Magazine; this award is judged by an independent panel and takes into account long term value, customer service, how easy products are to understand and commitment to mutuality, as well as competitive interest rates.
On 1 August 2006, following approval by the Mercantile members and confirmation by the Financial Services Authority, Leeds Building Society merged with Mercantile Building Society. Mercantile members overwhelmingly supported the proposal at the Society’s AGM at the end of April with 97% of the votes in favour of the merger, it is a member of the Building Societies Association. The Leeds Building Society is the main shirt sponsor of the current Super League Champion rugby league side Leeds Rhinos. Official website
Nationwide Building Society
Nationwide Building Society is a British mutual financial institution, the seventh largest cooperative financial institution and the largest building society in the world with over 15 million members. It has its headquarters in Swindon, with an office in Threadneedle Street and administration centres based in Bournemouth and Glasgow. Made up of over a hundred mergers — most notably its merger with Anglia Building Society in 1987 and Portman Building Society in 2007 — Nationwide is now the second largest provider of household savings and mortgages in the UK, it has a 7.7% market share of current accounts and was ranked number one for customer service satisfaction amongst its high street peer group for the three months ending 31 March 2016. For the financial year 2015/2016, Nationwide had assets of around £208.9 billion compared to £331 billion for the entire building society sector, making it larger than the remaining 44 British building societies combined. It is a member of the Building Societies Association, the Council of Mortgage Lenders and Co-operatives UK.
In 2016 Nationwide appeared 3rd in The Sunday Times'Top 25 Big Companies To Work For' poll, up from 6th in 2015. The Society's origins lie in the Northampton Town & County Freehold Land Society and the Southern Co-operative Permanent Building Society, London; the Co-operative Permanent, based at New Oxford House in the London Borough of Camden, changed its name to Nationwide Building Society in 1970, reflecting an organisation that had coverage throughout the country, after a decision by the British Co-operative Union in August 1970. The new name was put with members voting 135,675 to 15,585 in favour. In 1987, the Northampton-based Anglia Building Society merged with Nationwide; the new society was known as Nationwide Anglia Building Society at first, but the Anglia name was dropped in 1992. Nationwide launched an early UK internet banking service on 27 May 1997. In 1999, together with various UK tabloid newspapers and media, launched a campaign against controversial cash machine fees; the campaign reached a peak when Barclays Bank announced a plan to charge all customers of rival banks and financial providers, including those of Nationwide, £1 for every cash machine withdrawal made from a Barclays-owned cash machine.
This prompted Nationwide to warn Barclays that it would take legal action against the bank if it did not back down. Nationwide claimed Barclays had broken the rules of the LINK network of cash machines, which the bank had joined earlier in the year; the following year, withdrawals from most cash machines owned by UK banks were made free for customers of all banks and building societies throughout the UK. Nationwide completed a merger with Portman Building Society on 28 August 2007, creating a mutual body with assets of over £160 billion and around 13 million members. Portman's earliest component was the Provident Union Building Society founded in Ramsbury, Wiltshire in 1846. In the financial crisis of 2007–2008, the Nationwide acted to safeguard the mutual sector, acquiring the ailing Cheshire and Derbyshire building societies in September 2008, followed by the Dunfermline Building Society on 30 March 2009. On 24 March 2009 Nationwide opened a direct savings branch in Dublin, Ireland called Nationwide UK, to distinguish it from the unconnected and now-defunct Irish Nationwide Building Society.
However, Nationwide ceased all operations in the Irish Republic in 2017. In 2012, the society announced that it would integrate the Cheshire and Dunfermline building societies into Nationwide; the societies had operated under their own brands as divisions of the society. The rebranding of each business was phased, with the Dunfermline first to be merged in June 2014; the Cheshire and Derbyshire followed in November 2014 respectively. On 22 May 2015, it was announced that the Society's Chief Executive, Graham Beale, intended to retire. On 16 November 2015, Nationwide announced that Joe Garner, CEO of Openreach, would succeed Graham as Nationwide CEO in Spring 2016. Joe Garner joined the Society as Chief Executive on 5 April 2016. In May 2016, the society confirmed that it would be closing its subsidiary on the Isle of Man, Nationwide International, following a review of its business; the branch, based in Douglas, provided a range of offshore savings accounts in euros, pound sterling and US dollars.
It held assets in excess of £2.76 billion as at 31 March 2008, increasing to £3.69 billion by 31 March 2009, making it one of the largest deposit takers in the Isle of Man. Nationwide confirmed it would close on 30 June 2017. On 1 October 2016, Carillion began providing services for Nationwide's Headquarters in Swindon,'specifically aligned to Nationwide's sustainability strategy'; this contract is expected to be worth £350 million, building on an existing partnership of nearly nine years. In April 2017, the society confirmed that it would be closing its subsidiary on the Republic of Ireland, Nationwide UK, following a review of its business, its branch at 13 Merrion Row, Dublin 2 closed on 31 May 2017. The remainder of the business closed at the end of the year. Nationwide is committed to staying mutual and is keen to emphasise that it has members rather than shareholders. However, it has had challenges against its mutual status in the past. Nationwide was by far the largest British building society that did not convert to a bank in the wave of demutualisations that occurred from the late 1980s to the late 1990s.
In 1998, society members seeking a windfall, branded as carpetbaggers by the UK media, meant Nationwide members had to vote on whether to demutualise the society and float on the London Stock Exchange. The attempt failed, despite media reports of possible pay-outs to members of around £1,000 to £
Yorkshire Building Society
The Yorkshire Building Society is the third largest building society in the UK, with its headquarters in Bradford, West Yorkshire, England. It is a member of the Building Societies Association; the society owns the Chelsea Building Society and Norwich and Peterborough Building Society, as well as Accord Mortgages and the savings business of Egg, which are referred to as the Yorkshire Building Society Group. Collectively the group employs services 3 million members; the society provides financial services both directly and through a 143-strong branch network and 99 associated agencies across the UK. Despite changes in the industry in recent years, Yorkshire Building Society remains one of the major mutual building societies in Britain - a review in 1995 confirmed that their mutual status was important to them, so that they remain answerable to their members, rather than outside shareholders. In 1864, the Huddersfield Equitable Permanent Benefit Building Society was founded in Huddersfield, expansion through a series of agreed mergers, predominantly with the Bradford Permanent Building Society in 1975, has seen it evolve into the national building society that it is today.
The current name came into use in 1982, following the merger of the Huddersfield & Bradford Building Society and the West Yorkshire Building Society. Yorkshire Building Society has a mortgage subsidiary company, Accord. In August 2011 it announced that it was closing Yorkshire Guernsey; the Yorkshire took over the Sussex-based Haywards Heath Building Society in 1992, in an effort to develop a southern based branch presence. In 2001, the Society merged with the Gainsborough Building Society. In 2008, the Yorkshire merged with the Barnsley Building Society which had become a victim of the Icelandic banking crisis. After learning lessons from previous mergers, with the Barnsley being a larger organisation with a well-established brand, the Yorkshire decided to keep the Barnsley brand in order to keep existing customers and use it as another route to market their products. In 2009, the Yorkshire noted; the following day it was announced. The merger with Chelsea Building Society, which retained its own branding until 2016, was completed in 2010.
Chelsea branded services are now available online and by telephone only. The ninth largest building society at the time and Peterborough, entered into merger discussions with the Society on 19 March 2011. Following due diligence by the Yorkshire board, N&P members voted in favour of the proposal on 22 August. FSA approval followed on 23 September and the transfer of engagements was completed on 1 November. With no geographical overlap, the N&P name was retained as a separate and distinct brand. On 25 July 2011, the Yorkshire announced it was buying the Egg savings and mortgage business from Citi in a deal worth £2.5 billion. Use of the Egg trade marks by Yorkshire Building Society is under licence from Egg Banking Plc which provides any residual Egg savings products that were not transferred to the Yorkshire and any Egg loans products that were not sold to Britannica Recoveries S.a.r.l. In 1993, the former Hammonds Sauce Works Band was renamed as the Yorkshire Building Society Band; the building society supported the main band and the YBS Hawley Band and YBS Juniors.
The building society ceased its sponsorship in December 2004 although the YBS initials were retained in the band's name until 2008. From January 2009, the band was renamed the Hammonds Saltaire Band. List of banks List of banks in United Kingdom Official website
Skipton Building Society
The Skipton Building Society is a building society in the United Kingdom. It is a member of the Building Societies Association; the Society was established in 1853 in North Yorkshire, where it remains headquartered. It has over 1 million members and 100 branches, its pre-tax profit was £146.9 million for 2015. The Society has several subsidiary companies in the financial services industry These include Connells Group, one of the largest estate agency networks in the UK with 542 branches across the country. In 2010, it merged with the Chesham Building Society, founded in 1845, at the time the world's oldest surviving building society. Mortgage and savings - Amber and North Yorkshire Mortgages Estate Agency - Connells Group Financial Advice - SFS Investment Portfolio - includes, Jade Software Corporation and others 1853 - The Skipton Permanent Benefit Building Society is established at a public meeting in Skipton, West Riding of Yorkshire, held at the old Town Hall. Samuel Farey, a cotton mill owner and George Kendall, a timber merchant, are amongst the founders of the Society.
They are benevolent, wealthy industrialists who have prospered from the Industrial Revolution of the 1800s, establishing the new Society as a safe place to deposit savings, with a return on investment offered. 1854 - First Annual Meeting of Skipton and District Permanent Benefit Building Society. The society has 223 members and £2,951.16s.8d. in balances. 1879 - 1,185 members, £47,129 balances. 1892 - Head Office moves to 11 Newmarket Street from its home at the Old Post Office. 1895 - Samuel Farey dies, aged 73. 1903 - The Society becomes incorporated. It now has £ 82,305 in balances. 1921 - The Head Office moves a few yards along the street to numbers 5 & 7 Newmarket Street, Skipton. 1922 - Branches open in Nelson and Lytham, soon followed by branches in other towns and cities. 1923 - Henry Smith's is bought, with a view to demolishing it to make space for a brand new Head Office. 1928 - The new Head Office in Skipton town centre is opened by The Rt. Hon. Philip Snowden, Chancellor of the Exchequer in the Labour Government.
1929 - In the year of the Wall Street Crash, the Society holds assets of £1 million. 1945 - The Second World War ends and the Society holds assets of £5 million. 1950 - Assets double in five years to £10 million. 1953 - The Society celebrates its centenary, holding assets of £11.7 million. 1956 - Assets rise to £14 million. 1958 - Assets stand at £15 million. 1963 - Assets grow to £25 million. 1974 - Assets have now reached £100 million. 1977 - Assets stand at £150 million. 1978 - A five-storey extension to the rear of the High Street Head Office is built, to house over 200 staff. It occupies part of the site where the first office opened in 1853; this year sees the installation of the first computer in the new Skipton Administration Centre. The society now has 32 branches and 75 agencies throughout the UK, holding more than 125,000 accounts. 1990 - The Bailey, the Society's modern new premises on Harrogate Road, Skipton is built. 1992 - John Goodfellow becomes Chief Executive 1998 - The Bailey is extended.
2005 - Featured in Private Eye magazine accused of hiding £30 million of losses at subsidiary CallCredit PLC and buying its main computer system from near-bankrupt IT company, Jade Software Corporation. 2008-10 - Closes sub-prime lending vehicles, with over £1,920 millions lent to risky, sub-prime clients. 2009 - Takes over the former Scarborough Building Society. 2010 - Skipton Building Society merges with The Chesham Building Society - at the time, the world's oldest surviving building society, founded in 1845. 2014 - Sells HML, PHP and Torquill Clark 2015 - Skipton launches retirement website - retiresavvy.co.uk 2016 - Awarded Best National Building Society at 2016 What Mortgage Awards. The Skipton Building Society bailed out the former Scarborough Building Society on 31 March 2009; the Scarborough Building Society had encountered difficult trading conditions which had a significant impact on profitability and a weakening of the Society's resources. As a result, the board of The Scarborough concluded the effect of continuing UK house price instability and growing prospect of recession, the best way to protect its members' interests would be to seek a buyer.
Scarborough's former Chief Executive, John Carrier, retired on 31 December 2008. After the take over, the majority of employees from the original Scarborough Building Society were made redundant and the headquarters closed. On 1 June 2010 the building society merged with the Chesham Building Society following the latter's financial difficulties; the Society is engaged in its local communities with schemes including: Grassroots Giving - community funding programme Skipton Charitable Foundation Regular supporter of the Great Yorkshire Show Sponsorship of Skipton Building Society Camerata Former Chief Executive John Goodfellow's tenure at SBS was perceived as controversial by some. In 2008 Goodfellow received £1,244,000, despite him being required to leave early from his service contract, he was allowed to accrue pension benefits until the end of 2009. Skipton waived any early retirement discount factors applicable to his benefits in the scheme, enabling him to access his £2.3 million pension pot from 10 January 2010 with no penalty.
When Skipton announced it was taking over the Scarborough Building Society in November 2008, society chiefs told staff no
The Cambridge Building Society
The Cambridge Building Society is a UK mutual building society based in Cambridge, England. It is the 14th largest in the United Kingdom based on total assets of £1,128 million at 31 December 2015, it is a member of the Building Societies Association. The Society was formed in 1850 as the Cambridgeshire Permanent Benefit Building Society, adopting its current name in 1945. There is no connection between this Society and the Cambridge Foresters’ Benefit Building Society, dissolved in 1960 or the Cambridge Peers Economic Building Society, dissolved in 1972. Having been established in 1850, the Society was based at 6 Post Office Terrace in Cambridge from 1884 until 1967 when it moved to new offices at 32 St. Andrews Street. Ten years after the move the first sub-branch opened in Mill Road. In 1979 the Society's assets reached £50 million and in the following years from 1980 to 1984 another four branches opened; the Sapphire Savings Account by 1984 assets had reached £ 100 million. From 1985 to 1991 another six sub-branches opened their doors, while more savings products were launched including a Monthly Income account and tax-free savings solutions - TESSA and First Account.
By 1991 assets had reached £250 million. The rest of the 1990s saw huge changes for the Cambridge Building Society, including agency offices becoming full service branches, another five full branch openings, an increased range of products on offer and a move to the present Head Office accommodation at 51 Newmarket Road. By 2000 assets had reached £500 million and this figure has continued to rise; the late 90s and early 2000s saw the development of a number of community schemes including the inaugural Village and Community Magazine Awards, sponsorship of the Sawston Fun Run, the Society's first annual cycle event which raised £10,000 for local charities. By 2006 The Cambridge had opened its 22nd branch in Bar Hill, at a time when local banks were closing smaller branches. In 2016, The Cambridge Building Society was placed first in the Best Regional Building Society category at the What Mortgage Awards 2016; this was the third year in a row. Andy Lucas, chief operating officer at The Cambridge Building Society said, "With customer focus and community values running through every aspect of our business, it's an honour to be recognised yet again in these independent and prestigious awards."At the Moneyfacts Awards 2016, The Cambridge was Highly Commended in the Regional Lender of the Year category.
The Cambridge provides residential and buy-to-let mortgages on properties located in Bedfordshire, Cambridgeshire, Hertfordshire, Norfolk and Suffolk. The Society offers a range of fixed and variable rate products, including low-deposit mortgages, for first-time buyers, buy to let owners and those looking to remortgage. Other products and services include savings, financial planning, home insurance, family insurance and travel money. In 2015, the Society maintained its financial strength while undertaking significant investment in the business. Underlying profit, after adding back non-recurring costs invested in the IT systems and transition, was £3.1m. Mortgage loans totalled £99m; the Group's gross capital ratio was up 0.3% on 2014 to 5.7% in 2015. Total liquid assets was up 6.8% in 2015 to 22.5%. The Cambridge runs a community programme in which staff support and raise funds for local charities throughout the year. In 2015, the Society raised more than £15,000 for the chosen charities, while staff members gave more than 1,000 hours of voluntary work time to support awareness and fundraising.
The chosen charities for 2016 were Camsite, Hearing Dogs for Deaf People, Tom's Trust, Marie Curie Cancer Care, Eddie's, Wood Green Animal Shelter, Petals, ACT, Papworth Hospital Charity, Arthur Rank Hospice Charity, Little Miracles. Following its 2016 mortgage advertising campaign, in which a small girl tries to help a slug find a new home by showing it a variety of shells, the Society teamed up with the Wildlife Trust for Bedfordshire and Northamptonshireto initiate a Homes for Wildlife campaign. Youngsters were encouraged to think about the creatures they may find in their gardens and begin creating homes for them. In March 2016, the Society announced that five of its branches would be closing in June of that year; the villages of Burwell and Milton saw closures and, in Cambridge, the branches in Mill Road and Chesterton Road were closed. Five members of staff were deployed elsewhere within the Society. At the same time Stephen Mitcham, Chief Executive of The Cambridge, announced a £3 million investment programme to provide online services for customers.
"Investment decisions were taken following a full strategic review that considered the changing needs of existing members whilst ensuring future customers were catered for too. Customer feedback indicated that face to face advice and guidance remains critical for big decisions such as taking out a mortgage or choosing between savings accounts, but that there was a growing demand for more self-service options that made better use of the range of technologies now available to consumers." In 2011, as interest rates hit a historic low of 0.5%, The Cambridge was featured in a BBC news article as one of a number of banks and building societies offering savings products to "inflation-proof your savings". Featuring in Cambridge News for its charity work and community initiatives, opinion is sought from The Cambridge Building Society in relation to matter
Swansea, is a coastal city and county known as the City and County of Swansea in Wales. Swansea lies within the historic county boundaries of Glamorgan and the ancient Welsh commote of Gŵyr on the southwest coast; the county area includes the Gower Peninsula. Swansea is the twenty-fifth largest city in the United Kingdom. According to its local council, the City and County of Swansea had a population of 241,300 in 2014; the last official census stated that the city and urban areas combined concluded to be a total of 462,000 in 2011. During the 19th-century industrial heyday, Swansea was the key centre of the copper-smelting industry, earning the nickname Copperopolis. Archaeological finds in the Swansea area come from the Gower Peninsula, include items from the Stone Age, Bronze Age, Iron Age; the Romans occupied the area. The two largest rivers in the region are the Tawe which passes through the city centre and the Loughor which marks the northern border with Carmarthenshire; the Welsh name, translates to Mouth of the Tawe.
It first appears c.1150 as Aper Tyui. Swansea is thought to have developed as a Viking trading post, its English name may derive from Sveinn's island – Old Norse: Sveinsey – the reference to an island may refer either to a bank at the mouth of the River Tawe or to an area of raised ground in marshes. An alternative explanation derives the place name from the Norse personal name Sweyn and ey, which can mean "inlet"; this explanation supports the tradition. The name is pronounced Swans-y /ˈswɒnzi/), not Swan-sea; the earliest known form of the modern name, appears in the first charter, granted sometime between 1158 and 1184 by William de Newburgh, 3rd Earl of Warwick. The charter gave Swansea the status of a borough, granting the townsmen certain rights to develop the area. In 1215 King John granted a second charter. A town seal, believed to date from this period names the town as Sweyse. Following the Norman conquest, a marcher lordship was established under the title of Gower, it included land around Swansea Bay as far as the River Tawe, the manor of Kilvey beyond the Tawe, the peninsula itself.
Swansea was designated chief town of the lordship and received a borough charter at some point between 1158 and 1184. From the early 1700s to the late 1800s, Swansea was the world's leading copper-smelting area. Numerous smelters along the River Tawe received copper and other metal ores shipped from Cornwall and Devon, as well as from North and South America and Australia; the industry declined in the late 1800s, none of the smelters are now active. The port of Swansea traded in wine, wool, cloth and in coal. After the invention of the reverbatory furnace in the late 1600s, copper smelting was able to use coal rather than more-expensive charcoal. At the same time, the mines of Cornwall were increasing copper production. Swansea became the ideal place to smelt the Cornish copper ores, being close to the coalfields of South Wales and having an excellent port to receive ships carrying Cornish copper ore; because each ton of copper ore smelted used about three tons of coal, it was more economical to ship the copper ore to Wales rather than send the coal to Cornwall.
The first copper smelter at Swansea was established followed by many more. Once smelting was established, the smelters began receiving high-grade ore and ore concentrates from around the world. More coal mines opened to meet demand from northeast Gower to Llangyfelach. In the 1850s Swansea had more than 600 furnaces, a fleet of 500 oceangoing ships carrying out Welsh coal and bringing back metal ore from around the world. At that time most of the copper matte produced in the United States was sent to Swansea for refining.. Smelters processed arsenic, zinc and other metals. Nearby factories produced pottery; the Swansea smelters became so adept at recovering gold and silver from complex ores that in the 1800s they received ore concentrates from the United States, for example from Arizona in the 1850s, Colorado in the 1860s. The city expanded in the 18th and 19th centuries, was termed "Copperopolis". From the late 17th century to 1801, Swansea's population grew by 500%—the first official census indicated that, with 6,099 inhabitants, Swansea had become larger than Glamorgan's county town and was the second most populous town in Wales behind Merthyr Tydfil.
However, the census understated Swansea's true size, as much of the built-up area lay outside the contemporary boundaries of the borough. Swansea's population was overtaken by Merthyr in 1821 and by Cardiff in 1881, although in the latter year Swansea once again surpassed Merthyr. Much of Swansea's growth was due to migration from within and beyond Wales—in 1881 more than a third of the borough's population had been born outside Swansea and Glamorgan, just under a quarter outside Wales. Copper smelting at Swansea declined in the late 1800s for a number of reasons. Copper mining in Cornwall declined; the price of copper dropped from £112 in 1860 to £35 in the 1890s. In the early 1900s, mining shifted to lower-grade copper deposits in North and South America, the lower-grade ore could not support transportation to Swansea; the Swansea and Mumbles Railway was built in 1804 to move limestone from
A mortgage loan or mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination; this means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can be described as "a borrower giving consideration in the form of a collateral for a benefit". Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property.
The lender will be a financial institution, such as a bank, credit union or building society, depending on the country concerned, the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, other characteristics can vary considerably; the lender's rights over the secured property take priority over the borrower's other creditors, which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first. In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector or through the capital markets through a process called "securitization", which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.
According to Anglo-American property law, a mortgage occurs when an owner pledges his or her interest as security or collateral for a loan. Therefore, a mortgage is an encumbrance on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan secured by such real property; as with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time 30 years. All types of real property can be, are, secured with a mortgage and bear an interest rate, supposed to reflect the lender's risk. Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property. Although the terminology and precise forms will differ from country to country, the basic components tend to be similar: Property: the physical residence being financed; the exact form of ownership will vary from country to country, may restrict the types of lending that are possible.
Mortgage: the security interest of the lender in the property, which may entail restrictions on the use or disposal of the property. Restrictions may include requirements to purchase home insurance and mortgage insurance, or pay off outstanding debt before selling the property. Borrower: the person borrowing who either has or is creating an ownership interest in the property. Lender: any lender, but a bank or other financial institution. Principal: the original size of the loan, which may or may not include certain other costs. Interest: a financial charge for use of the lender's money. Foreclosure or repossession: the possibility that the lender has to foreclose, repossess or seize the property under certain circumstances is essential to a mortgage loan. Completion: legal completion of the mortgage deed, hence the start of the mortgage. Redemption: final repayment of the amount outstanding, which may be a "natural redemption" at the end of the scheduled term or a lump sum redemption when the borrower decides to sell the property.
A closed mortgage account is said to be "redeemed". Many other specific characteristics are common to many markets, but the above are the essential features. Governments regulate many aspects of mortgage lending, either directly or indirectly, through state intervention. Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system. Mortgage loans are gen