Vocabulary:

principal – основная сумма

finance charges – зд. оплата кредита

service charges – плата за обслуживание

annual percentage rate – ставка годового процента

installments – взносы

arrangement – договоренность

charge accounts – кредиты по открытому счету

household mortgage – жилищная ипотека

credit history – досье заемщика

capacity – способность

credit worthy – кредитоспособный

pledged as security for the loan – заявленное как обеспечение займа

loan credit and sales credit – ссудный кредит и коммерческий кредит

thrift institutions and lending agencies – сберегательные учреждения и кредитные агентства

good credit rating – хорошая кредитоспособность

Unit 11: a mortgage

Exercise 1: Fill in the spaces with the appropriate word or words.

1. My ________'s in the order of £ 10,000 a year.

2. The bank's got very good __________ with the organization you work for.

3. The Central Mortgage Agency can lend you the difference between the first mortgage and 80% of the __________ value of the house.

4. To what ________ are you in a position to help me?

5. I think £60,000 is a __________ of the value of the house.

6. My contract will be __________ at least twice.

7. Have you got any other _________ of income besides your salary?

8. I've already had a second _________ concerning the value of the house, and it seems that the price is reasonable.

9. If you'll just fill in this ________, we can send it to the CMA for you.

10. The bank can let you have a first __________ on your house, and the CMA can give you a second.

Text 1: Read the dialogue; translate it into Russian using Terminology.

Peter MacDonald works with the World Health Organization in Geneva. He started the job two months ago, and is at present looking for a suitable permanent place to live for himself and his family. His wife and children are still in Paris.

His present contract at the WHO is for a minimum of three years, but he has been assured that it will be renewed at least twice.

He has now found a house which seems ideal. It costs £60,000. Peter has about £12,000, and his problem is to find the rest.

He visits George Hudson at the bank to discuss the possibility of getting a mortgage.

MacDonald. Mr Hudson?

Hudson. Yes. Good morning. Come in.

MacDonald. Good morning.

Hudson. Have a seat, please.

MacDonald. Thank you.

Hudson. What can I do for you, Mr MacDonald?

MacDonald. I've been here for two months now. I work with the World Health Organization.Up till now, I've been living in a small apartment that belongs to a friend, and I've been looking round to find somewhere permanent to live. My family's still in Paris, by the way... my wife and children. I've recently found a house about twenty minutes from my office, which seems ideal... The price is £60,000. I've got some £12,000, and my problem is to find the rest. The reason I'm here, is to find out to what extent you are in a position to help me.

Hudson. First, I'd like to say that we aren't specialists in mortgages. But as you're a civil servant working for the WHO ... we can probably help you, in view of our relations with that organization. How long is your contract with the WHO?

MacDonald. Three years minimum, but I've been assured that the contract will be renewed at least twice. Personally, I don't plan to be here all my life, but I think that eight to ten years is a reasonable estimate.

Hudson. What's your position in the organization, Mr Mac-Donald?

MacDonald. I'm here as a specialist in statistics, and I'm head of a small section. I presume you're interested in my income, however. It's in the order of £10,000 a year, in addition to expenses.

Hudson. Have you got a plan of the house?

MacDonald. A plan... no... but I can ask the agency to let you have one. It's quite big... It's got five bedrooms, and two living rooms, in addition to the kitchen, laundry, three bathrooms and so on. It's got quite a big garden too... oh, and a garage for two cars.

Hudson. What's the total area of the property?

MacDonald. It's about 2,200 square metres.

Hudson. (writing) About 2,200 square metres. Well, that's quite enough to keep you busy during your free time.

MacDonald. (laughing) Luckily my wife's very energetic, so she'll cut the grass.

Hudson. Good. You have £12,600 at your disposal.

MacDonald. Yes.

Hudson. First of all, we'll have to ask our architect to look at the house, just to see whether the price of £60,000 is reasonable.

MacDonald. Yes, I see. I'm sure your architect will agree with the price. I've already had a second opinion, and I'm told that the price is perfectly reasonable. What I'd like to have is some details on a mortgage...

Hudson. We'll allow you a first mortgage of 50% of the value of the property. In other words, £30,000. Now you say you have £12,000. Have you also got any investments that we could use as collateral?

MacDonald. Yes. I've got some bonds and some shares... to a value of some £20,000.

Hudson. We'd be able to lend you 60% of that. That would come to about £12,000. Let's see. £12,000 plus £30,000 plus £12,000 ... that comes to £54,000. You still need £6,000. There's an organization called the Central Mortgage. Agency, which gives second mortgages. They can lend you the difference between the first mortgage and 80% of the estimated value of the house. If we calculate the value of the house at £50,000 ... they' re always very cautious ... 80% would be £40,000. If we deduct £30,000 for the first mortgage, that, leaves £10,000... just what you need.

MacDonald. Do you do everything necessary to obtain the second mortgage?

Hudson. We'll give you a form to fill in and send it on to the CMA. Shall we just calculate the annual cost such a mortgage would represent?

MacDonald. Certainly.

Hudson. The first mortgage is 7%. That comes to £2,100; the amortization at 2% comes to £600...; the loan against bonds... 7% too, that's to say, £840; the 20% lent by the CMA at 7.5% comes to £750; the amortization at 6%... £600. Let's just add that up. Nine... twenty-eight... four. That comes to four thousand eight hun­dred and ninety pounds a year.

MacDonald. In other words, about £400 a month... That's a lot.

Hudson. Have you got any other source of income?

MacDonald. Yes. My wife has some investments, and I think we'll have to look into that. I must say, housing is very expensive here.

Hudson. I agree, and the monthly cost of such an operation would be enormous.

MacDonald. Do you think it's worth buying a house? Or do I run a risk of a loss when I move on?

Hudson. In general, buying a house insures you against infla­tion if the price at the start is correct.

MacDonald. Well, thank you for your help. When do you think your surveyor could visit the house?

Hudson. Well, my telephone's 228.496. As soon as you have the documents on the house, you can call me, and we can fix an appointment with our architect.

MacDonald. Thank you very much. I'll be calling you in two or , three days.

Hudson. Thank you.