Elementary Tips

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What does it mean by "All Money" ?

 

Mortgage loans on private properties are usually offered by bank in the way of "All Money". This type of mortgage is mutually beneficial to property owners and banks in the way that no specific amount is indicated on the related document. Loan amount is determined by the agreement between banks and property owners on the collateral amount.


If borrowers need cash flow after their partial repayment few years later, they could specify the new loan amount by signing new overdraft agreement with banks without signing any new legal document. This kind of mortgage is usually listed as "Consideration is all money " or "General banking facilities to an unlimited extent" on the registration in The Land Registry.

 

What’s the difference between deposit and initial payment?

 

Deposit is amount, usually 2% to 3% of the property price, paid to vendor for confirmation of transaction. Initial payment including deposit is usually 10% or above of property price.

 

How to determine the terms of loan?

 

Generally, bank will approve loans based on applicants’ loan repayment capacity and the property conditions. Bank will determine the mortgage rate, loan tenor and loan amount according to the property conditions and applicants’ loan repayment capacity. Property conditions include age of property, district and orientation, etc. Borrowers’ loan repayment capacity includes occupation, salary, asset and past repayment record on credit card or loan.