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7 Cards in this Set
- Front
- Back
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Capital |
In relation to mortgages, capital refers to the total amount borrowed. |
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Capital gains tax |
A tax payable on the profit when someone disposes of an asset. Each person is allowed to make a certain amount of profit before being taxed on it. |
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Loan to value |
The ratio of the size of the loan to the value of the property |
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Loan to income |
The ratio size of the loan to the income of the customer. It means that the lower someone’s income, the less they can borrow. |
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Loan forbearance I |
When lender does not seek to repossess a property as soon as the borrower has misses a few monthly payments, instead allowing the customer to stop paying or make reduced payment for a set period. |
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Murabaha method |
The provider buys the property at an agreed price and then sells it immediately to the client at a higher price. The higher price charged to the purchaser reflects the profit element for the provider |
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Ijara method |
The provider buys the clients selected property. The provider then sells the property to the client for the same price under a promise to purchase agreement, with the repayment spread over a term of up to 25 years |
