Mortgage glossary

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Negative amortization: a condition where the loan balance goes up, rather than down, as payments are made. If a payment is not large enough to cover the interest due the difference is added to the principal.  FFI mortgage glossary.

Negative equity: when the value of the property has fallen and is less than the loan secured on it.

NHBC guarantee: a 10-year guarantee, provided by the National House Building Council, that the builder will put right serious defects on a newly-built property. Zurich Municipal and Premier Guarantee all offer similar guarantees.

No cost loan: many lenders offer loans that you can obtain at "no cost." You should inquire whether this means there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a "no-point" loan, the interest rate will be higher than if you obtain a loan that has costs associated with it. FFI mortgage glossary.

No Cost Refinance: a refinance with the fees and charges are added to the new mortgage amount instead of being paid up front.

Non Conforming Loan: a mortgage which does not conform to credit or other standards, or to the maximum loan limits set by Fannie Mae and Freddie Mac.

Non Status: where a lender may not require income details from you or may accept some previous poor credit history i.e. CCJ's or previous mortgage arrears.

Note: a signed, formal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time.

Note Rate: the stated interest rate on a mortgage or other loan agreement.

Notice of default: a formal written notice to a borrower that a default has occurred and that legal action may be taken.