Explanatory dictionary

It operates on behalf of, in the name of, and at the risk of the financial institution, and is authorized to enter into contracts with borrowers on the basis of an agency agreement concluded with the financial institution, meaning that borrowers do not come into direct contact with the lender.

The loan applicant becomes a debtor after signing the contract.

The person who, together with the debtor, assumes joint and several liability for payment to the financial institution granting the loan.

In the case of credit products, annuity refers to the method of credit repayment. In the case of annuity, the monthly repayment installment (principal, interest, handling fee) remains constant throughout the entire term (per interest period).

A person who offers their own property as collateral to secure repayment of a loan, on which a mortgage is registered.

The ownership of real estate subject to such a prohibition cannot be transferred to another party, nor can the real estate be used as collateral.

Prepayment refers to a situation where the customer deviates from the repayment schedule specified in the loan agreement and repays more money at once. There are two types: partial and full prepayment (= final repayment). In the case of full prepayment, no outstanding debt remains.

A fee determined based on the amount to be prepaid for prepayments initiated by the Customer. In certain cases, Beyond Financing Zrt. waives the prepayment fee.

The fee for valuations carried out for the purpose of assessing the loan application (determining the acceptance value), which fee shall not be refunded to the Customer if the loan application is rejected.

The fee for registering the mortgage right with the Land Registry after concluding the individual loan agreement and mortgage agreement. Payment of this fee is a condition for the disbursement of the loan. The fee may change in the event of changes in legislation.

The fee is determined to cover the costs of compiling the loan application, preparing it for assessment, assessing it and carrying out the necessary checks, drawing up the loan and collateral agreements and providing the legal assistance required in this process, and the administration of disbursement, which is determined to cover (part of) the costs directly attributable to the financial service provided. It may be paid in a lump sum prior to disbursement or continuously during the repayment of the loan.

The value determined during the appraisal, which is not the market value of the appraised property, but the value at which the bank considers the property to be collateral. Its amount is usually about 10-30% lower than the market value of the property. The financing ratio is usually given as a percentage of the collateral value.

The debtor register, i.e. the Central Credit Information System (KHR), formerly known as the Interbank Debtor and Credit Information System (BAR), abbreviated name. A list of debtors who have debts exceeding the minimum wage for more than 90 days.

A loan whose primary collateral is a mortgage registered on the property.

In the case of mortgage loans, a mortgage right is registered on the debtor’s property for the bank providing the loan, which serves as collateral. The debtor can, of course, use the property during the term of the loan, but the mortgage right is registered on the property’s title deed in favor of the bank and remains there until the loan is repaid in full.

The fee charged for making the loan amount available.

The period during the term of the loan during which the interest rate cannot change. At the end of the interest period, the bank may adjust the interest rate in line with market conditions, but it must remain unchanged for the following period.

The fee charged by the bank for administration, the amount of which generally depends on the principal debt.

A fee determined on the basis of the outstanding principal under the loan agreement. The amount is based on the principal debt at the beginning of the transaction year. The amount is fixed within the transaction year. Its purpose is to cover the lender’s costs related to the registration and management of the loan. The amount is determined unilaterally by the lender.

If the Customer fails to repay the loan, pay interest or fees arising from the loan agreement for any reason, or is late in doing so, MHK Zrt. shall be entitled to charge default interest at the rate of 10% p.a. on the outstanding amount for the period of delay. interest or fee payment obligations arising from the concluded loan agreement for any reason, MHK Zrt. shall be entitled to charge the transaction interest rate valid at the time of the delay and the interest specified in the List of Conditions for late performance of obligations for the period of the delay, and the Customer shall be obliged to pay these.

A person who is liable for the entire amount of the loan with all of their assets in the event of the debtor’s failure to pay.

Loans may also be granted in cases that deviate from the standard terms and conditions set out in the product descriptions. In such cases, the interest rate on the loan transaction will be increased by a so-called risk premium.

Beyond Financing Zrt. is also entitled to apply a risk interest premium if any of the Customer’s payment obligations are fulfilled more than 20 calendar days after the due date within the interest period.

If the Customer’s payment delays do not exceed a maximum of 20 calendar days in the interest period affected by the “Risk interest premium applied in the event of late repayment,” this risk interest premium will not be applied in the subsequent interest period. The amount of the risk interest surcharges applied is specified in the current List of Conditions.

In the case of a purchase, the portion of the total purchase price that the customer finances from their own funds.

If the value of the collateral offered is insufficient to cover the requested loan amount, additional collateral will be required.

A fee charged in the event of any change to the terms and conditions of the loan agreement or mortgage agreement initiated by the Customer.

Fee for requesting a title deed and map copy from the TakarNet Land Registry Information System. The fee may change if the service provider changes its pricing policy.

The annualized interest rate expressed as a percentage, which includes interest, handling fees, credit assessment fees, appraisal fees, and any other on-site inspection costs that may arise in connection with a home loan, but does not include special items such as late payment interest, the cost of extending the term, costs arising from non-payment, insurance and guarantee fees, and transfer fees.

Following disbursement, there is a transitional period during which the customer only pays interest and handling fees. Repayment of the principal only begins after this period. Grace periods only apply to annuity loans.

Interest applied in the event of failure to meet the conditions specified in the Customer’s individual loan agreement, which are to be fulfilled after the loan has been disbursed, by the deadline also specified in the individual loan agreement.