| Acceptance | | | | property that is on it. |
| When you are offered and accept a mortgage offer | | | | Gazumping |
| from a lender this is what you need to sign and | | | | This is when a vendor (seller) accepts an offer but |
| return. | | | | later rejects it to accept a higher offer by another |
| APR | | | | buyer. |
| Stands for 'Annual Percentage Rate' relating to | | | | Gazundering |
| interest on a loan | | | | This is the opposite of gazumping - when the buyer |
| Applicant | | | | threatens to pull out just before the exchange of |
| The term used by an estate agent to refer to you | | | | contracts if the price is not reduced. |
| when you are a potential buyer of a property. | | | | Gearing |
| Appraisal | | | | Using loaned funds to progress investments. For |
| When selling your house an estate agent will 'appraise' | | | | example, buying a house with a small deposit and the |
| your property to determine a current value for it. | | | | rest with a mortgage and then selling the property |
| Arrangement Fee | | | | on at a higher price, making a profit. |
| Some lenders may ask for this fee for providing or | | | | Ground Rent |
| 'arranging' a loan | | | | This is rent paid annually by the leaseholder of a |
| Assignment | | | | property to the owner of the freehold. Usually it is |
| The transfer of ownership from one person to | | | | paid to the owners of the land on which the |
| another. For example if you buy a leasehold property | | | | property/properties are built. |
| ownership is 'assigned' to you via the contract. | | | | Guarantor |
| Base Rate | | | | A person who agrees to guarantee that they will pay |
| This is the lowest rate of interest a bank will charge | | | | a debt or loan if you default on payment. |
| when it lends you money and is used as a | | | | Home Information Pack ( HIP ) |
| benchmark to set interest rates for borrowers. This | | | | Also known as a 'Sellers Pack' this will be a |
| rate set by the Bank of England and is reviewed | | | | mandatory Survey from the 1st of June 2007 to be |
| several times a year. Lenders will charge borrowers a | | | | produced by a home owner or selling agents via a |
| margin above the base rate. | | | | home inspector before a property can be put on the |
| Bridging Finance/Loan | | | | open market. The aim is to help improve the process |
| You may need 'Bridging Finance' if you are buying a | | | | of buying and selling a home, it is part of the |
| new property before selling your current house. This | | | | conveyancing process and will include detailed |
| is to 'bridge' the gap before you have sold your | | | | information about a property. |
| property so as to complete the buying process of | | | | IFA |
| your new property before selling your existing home. | | | | Independent Financial Adviser |
| Broker | | | | Instruction |
| This is a person who advises on mortgages and | | | | This is when you give an estate agent 'Instructions' |
| loans, known as a 'mortgage broker' | | | | or the right to sell or let your property. |
| Capped Rate | | | | Joint / Multiple Agency |
| The maximum set interest rate you will pay on a | | | | This is when you instruct more than one estate |
| mortgage for a set period of time. This means that | | | | agent to market your property. |
| the interest rate cannot go higher than the capped | | | | Land Certificate |
| rate during the specified time period, usually the first | | | | The certificate that proves ownership of land issued |
| few years of the loan. | | | | by the land registry. |
| Chain | | | | Land Registry |
| This refers to a sequence of buyers and sellers. Most | | | | A government office that stores records of land |
| people who sell their homes are also buying at the | | | | ownership and any charges like a mortgage. |
| same time. There can be a 'chain' of several buyers | | | | Lease |
| and sellers, each dependent on each other for the | | | | A legal document detailing an agreement made |
| sale and purchase of their new homes. If one buyer | | | | between a freeholder and those occupying their |
| or seller drops out the whole chain may collapse, | | | | property for a specified period of time. It lists all the |
| leading to a domino effect where the paperwork for | | | | conditions which the leaseholder must abide by and |
| several properties is delayed or cancelled altogether. | | | | what the landlord's responsibilities are. |
| Chain Free | | | | Leasehold |
| This is when the owner of property doesn't need to | | | | Land or property is 'leasehold' when the owner has |
| sell the property in order to buy another, thus it is | | | | to pay the freeholder an annual sum of money. |
| offered chain free. | | | | Lender |
| Collateral | | | | A person or company that lends money for an |
| Your house is 'Collateral' when used as a guarantee | | | | agreed time period. They expect to have the money |
| you will repay a loan to your lender. If you do not | | | | repaid back with interest added - your mortgage |
| keep up with repayment your house could be sold by | | | | company is a lender. |
| the lender to get back the money they have loaned | | | | LTV |
| you. | | | | Loan To Value |
| Completion | | | | Maintenance Charge |
| This is the final stage of the property buying process | | | | A landlord charges for the annual maintenance of a |
| - when the agreed sale price has been paid by the | | | | property which should be agreed in your contract. |
| buyer to the seller. Legal ownership has been | | | | This includes keeping the outside of the property in |
| transferred from the seller to the buyer of the | | | | good order and gardening services in communal areas. |
| property. | | | | MIG |
| Contents Insurance | | | | Mortgage Indemnity Guarantee - an insurance |
| This insurance is taken out to cover/protect personal | | | | premium some lenders may need you to take out on |
| belongings that are in your home. | | | | certain mortgages. |
| Contract | | | | B>Mortgage |
| This is the agreement that once signed by the buyer | | | | Money borrowed from a lender to buy a property. |
| and seller binds both parties to the sale and purchase | | | | The borrower agrees to use his or her property as |
| of the property. | | | | security against it until the loan is paid back. |
| Conversion | | | | Mortgage Deed |
| This can refer to a property that has had the loft | | | | A document which has the details of a mortgage |
| converted into a room, or a house that has been | | | | arrangement. |
| converted into flats. | | | | Mortgage Offer |
| Conveyancing | | | | An offer from a lender which details the terms and |
| The name of the legal process that transfers | | | | conditions of a loan. |
| property ownership from the seller to the buyer. | | | | Mortgagor |
| Covenant | | | | The individual who is borrowing money for the |
| A requirement by law on the owner of a property to | | | | purpose of buying a property. |
| either do or not do something with their property. | | | | Negative Equity |
| CAM | | | | When you owe more than the market value of your |
| Stands for Current Account Mortgage | | | | property, or have paid or are paying back more than |
| CCJ | | | | a property is worth. |
| This stands for County Court Judgement. If you | | | | Offer |
| have a judgement against you for defaulting on a | | | | An offer, usually below the asking price, you make |
| debt it may mean you are turned down for future | | | | on a property. |
| loans or pay a higher interest rate. | | | | OMV |
| Deeds | | | | Open Market Value - the value a property can |
| The legal documents regarding a property. | | | | achieve when there is a willing buyer and seller. |
| Default | | | | Redemption |
| This is a term used when you do not do as you | | | | This is the moment when you pay off your |
| agreed, eg. failing to make a mortgage payment. If | | | | mortgage |
| you fail to make mortgage payments (or default), | | | | Registered Land |
| your home could be repossessed. | | | | Land including any property on it that is registered |
| Delayed Completion | | | | with the land registry. |
| Typically completion takes less than 28 days after | | | | Right Of Way |
| the exchange of contracts. If it takes place after 28 | | | | The legal access to a piece of property so as to |
| days then it is called 'delayed completion' | | | | access your own property. |
| Deposit | | | | ROI |
| In terms of mortgages a deposit is the initial lump | | | | Return On Investment - how much you get out of |
| sum payment the buyer contributes towards the | | | | what you put in. |
| total purchase price of the property. | | | | Searches |
| Disbursements | | | | The process of finding out if there are any unwanted |
| This is another word for the legal costs involved with | | | | effects now or planned for the future on a property. |
| purchasing a property. | | | | Sole Agency |
| Discounted Rate | | | | When a single (sole) estate agent has been given the |
| This type of mortgage has an interest rate lower | | | | right to sell or let a property. |
| than the lender's Standard Variable Rate (SVR). | | | | Stamp Duty |
| Early Repayment Charge | | | | Tax paid to the government on the purchase price |
| This is a charge or 'fee' payable if you pay part or all | | | | of property. |
| of your mortgage off earlier than agreed. This is | | | | Subject To Contract |
| used to compensate the lender for interest that | | | | The point at which both parties are free to pull out |
| would have been paid if the mortgage had run for | | | | of an agreement before exchange of contracts. |
| the full time period agreed. | | | | Survey |
| Equitable Interest | | | | A survey is the report produced by a building |
| When a person has some legal rights to a property | | | | surveyor for the purpose of determining the value of |
| but not including sale of the property. | | | | the property and if it is structurally sound. |
| Equity | | | | Tenant |
| This is what you actually own - it is the difference | | | | A person or persons (can be a company or |
| between the market value of your property and the | | | | organisation) who is entitled to occupy a property |
| amount of the loan you still owe to the lender. | | | | under the terms and conditions of a tenancy |
| Exchange of Contracts | | | | agreement. |
| This is the point at which the buyer and seller are | | | | Tenure |
| legally bound to complete the sale. | | | | The type of ownership of a property such as |
| Execution Only | | | | Freehold or Leasehold |
| A service with no advice, just carry out the orders | | | | Title |
| of a customer. | | | | The legal right to ownership of a property. |
| Fixed Rate Mortgage | | | | Title Deeds |
| A mortgage which has a 'fixed' rate of interest for a | | | | A Document that shows ownership of a property. |
| set period of time. | | | | Under Offer |
| Fixtures and Fittings | | | | When a property has had an offer accepted but |
| These are items in a house that are included in the | | | | contracts have not been exchanged. |
| sale. For example lighting fixtures, carpets and so on - | | | | Valuation |
| these should be agreed / confirmed before a sale. | | | | A service by an estate agent or independent expert |
| Flexible Mortgage | | | | to determine the value of a property in the current |
| As the name suggests this mortgage is flexible in | | | | market. |
| terms of how you pay the loan back. An example | | | | Vendor |
| could be that it allows you to make overpayments or | | | | The person who is selling a property. |
| pay off your mortgage early. | | | | This is meant as a general guide and should not be |
| Freehold | | | | seen as legal advice. |
| Complete ownership of a piece of land and the | | | | |