Deeds

The formal written document which lists exactly who owns a property and enables transfer of a property’s ownership from seller to buyer. A mortgage lender will record details of their mortgage on these deeds (which means they can take ownership of the property if you default on the loan payments).

Deposit

In the context of mortgages, the deposit is the initial lump sum payment which the buyer must contribute to the property’s total purchase price. Commonly set at around 5% to 10%.

Deposit-based Savings

A method of saving which pays regular, usually variable interest based on the amount invested (instead of relying, for example, on the unpredictable returns from stock market investment).

Discounted Rate

A mortgage which has an interest rate below the lender’s standard variable rate (SVR), Bank Base Rate or Libor rate, typically for the first few months or years of the loan. The rate payable may move up and down, but the discount on SVR remains constant.

Distance mortgage mediation contract

Mortgages completed at distance – namely not face-to-face – are classed as a distance contract.

Diversification

The principle that wise investors should spread their risk among many different types of investment. A properly balanced portfolio will contain elements of share, deposit-based and property investments. Fund performance and objective achievement are not guaranteed.

Durable Medium

A document which meets the following criteria is said to be in a durable medium:

• Capable of being used by the recipient.
• Enables the recipient to store the information in a way accessible for future reference for a period of time adequate for the purposes of the information.
• Allows the unchanged reproduction of the information.