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A B C
D E F
G H I
J K L
M N O
P Q R
S T U
V W X
Y Z
apr- Annual Percentage Rate of charge. The total cost of a loan, including all costs (interest rates, boreks fees,
legal fee, etc.;
Advance - a mortgage loan;
Abstract Of Title - a summary of the documents which prove your ownership of the property;
Assurance(Life) - a life insurance policy linked with a mortgage or loan. A portion of premium goes toward
insuring your life and will pay off loan in event of death. The rest is invested and will pay a lump sum at the
end of the term.
B
Balance outstanding - the amount of loan owed at a particular time;
Broker (Mortgage) - a middleman who identifies and places customers requiring a mortgage with a mortgage lender
able to provide it. The broker usually carries out the administrative work with processing the loan;
BSQ - Building Society Questionnaire. It is completed by bank, building society or other lender, providing details
of an applicant's mortgage account;
Buildings insurance - insurance against the cost of rebuilding a property from structural damage;
Building regulations - the health and safety requirements that any new construction must meet;
Building society - a mutual institution owned by its investors and borrowers that provides a range of savings
and mortgage-lending schemes;
Buy-to-Let scheme - a scheme which allows buying a property in order to let it to be considered an investment;
C
Cashback - a type of loan where the borrower is given back a sum of money;
Charge - a legal term often used to describe a mortgage;
Commission - the fee charged for services provided;
Completion - a formal completing of a contract of sale - the money transaction is complete and the buyer becomes the
legal owner of the property;
Contents insurance - insurance against damage / theft of all moveable contents;
Contract - The document that sets out the terms of sale between the seller and the buyer of the property;
Contractor - a person or a firm that does jobs or services under a contract;
Conveyancing - the legal work involved in transfering the ownership of land/property;
Conveyancer - a person who carries out the legal work involved in buying/selling a property;
Council Tax Charge - a tax paid to the local councils to cover the cost of local amenities and services;
D
Deeds - see Title Deeds;
Deposit - Sum of money which the buyer puts down to secure the mortgage loan after exchange of contracts;
Discharge - paying off a mortgage;
Discounted Rate - it gives a reduction of the Standard Variable Rate (SVR) for a period;
Down payment - see Deposit;
E
Early redemption - completion of loan payments before term;
Endowment - a life assurance policy producing a lump sum to pay off an interest only mortgage;
Equity - the difference between the value of a property and the amount of mortgage owed;
Estate agent - an intermediary between sellers and buyers;
Exchange of Contracts - the time when the home buyer signs the contract and becomes obliged to complete the purchase within a specific period of time;
Ex-local authority property - a property formerly owned by the council;
F
Freehold - you (freeholder) own the land or property absolutely and it is your forever;
Fixed Rate - the rate is fixed for a period of time and the payments will be over at the end of this period;
Fixtures and fittings - all non-structural items included in the purchase of a property;
Flexible mortgage - a mortgage giving you the benefit to repay it in line your circumstances;
G
Gazumping - a tactic whereby the seller demands more money, or accepts a higher offer, just before exchange of contracts;
Gazundering - a tactic whereby the buyer offers less than the agreed price just before exchange of contracts;
Ground rent - the annual fee which a leaseholder pays to a freeholder;
H
Home buyer's report - a surveyor's report containing more detail than the valuation;
Home contents insurance - a policy insuring household contents against damage/theft;
Housing association - a non-profit organisation which lets you buy a percentage of the property and pay rent on the rest;
I
Interest Only Mortgage - a type of mortgage; the repayments cover only the interest of the loan, the capital is paid by another repayment vehicle e.g. an endowment;
J
Joint Mortgage - mortgage shared jointly between two people with the agreement that if one dies, the other automatically inherits their share;
K
K - symbol for 'thousands' used in denoting house prices, for example £135K;
Kettle - one of the first items that buyers are advised to pack separately for easy retrieval in the new property;
L
Land certificate - a Land Registry certificate proving ownership of a property;
Land Registry - an organisation that keeps a record of land ownership;
Leasehold - the land /property is owned for a fixed period of time;
Lender - a company that provides the finance to satisfy a loan or mortgage request;
Loan(Secured) - the equity of a property is a guarantee against not paying the loan back;
Loan (Unsecured) - the financial position of the applicant is such that a guarantee for the loan is not required;
LTV - Loan to Value; a loan or a mortgage that is a percentage of the value of the property or the price being paid for the property;
M
Maintenance charge - the cost of repairing communal parts (external or/and internal) of a building;
MCRI - Mortgage Coe Register of Intermediaries. This register is maintained by the Council of Mortgage Lendersand consists of the names of the mortgage brokers subscribed to the Mortgage Code;
MGI - Mortage Guarantee Insurance.An insurance policy needed in case the amount owned on a mortgage and the value of the property don't match;
MIG - Mortgage Indemnity Guarantee;
MIRAS - Mortgage Interest Relief at Source. Government scheme providing tax relief on mortgage interest payments. Expired April 2000;
Mortgagee - The organisation or person that lends you the money on a mortgage, usually a building society;
Mortgage - a loan to purchase a property and the property is used as a security for paying the loan back;
Mortgagor - the borrower who takes out the mortgage;
N
Negative Equity - the shortfall between the value of the property and the amount owed on a mortgage on a mortgage;
O
Offer - sum of money that the lender offers to pay for a property;
Offer of Advance - known also as a mortgage offer. A document that the applicant must sign, detailing the terms and conditions of the mortgage loan;
Office Copies - copies of the documents for property ownership and mortgage held by the land Registry;
Ombudsman - independent professional bodies who investigate complaints on behalf of customers against (e.g. estate agents, solicitors, insurance companies);
P
Penalty- costs that may be incurred if the borrower repays the loan too early or switches between lenders;
Planning permission - the permission granted by the local planning authority (usually the local council) for any new building or engineering operations or change of use of a building if it meets the public's interest;
Preliminary enquiries - questions which the seller must answer before the exchange of contracts;
Private sale - sale of a property without the use of an estate agent as intermediary;
Processing - the administration and paperwork related to a loan from the time the application is received to completion of the whole process;
Q
Quotation- statement of the current price of stock; borrowers are advised to gather quotations from different mortgage lenders and insurance companies before making a commitment;
R
Rate(Capped) - The interest rat cannot go up or down for an agreed period of time;
Rate(Variable) - the interest rate may vary up or down;
Redemption Penalties - when the loan is paid off early the lender charge the borrower a fee. This applies to to Fixed, Discounted or Capped rate mortgages;
Registered land - land for which the ownership is registered at the Land Registry;
Remortgage - the borrower takes out the loan to replace another loan secured on the same property;
Repayment mortgage - monthly interest combined with payment towards the capital sum borrowed;
RTB - legislation that gives council tenants the Right to Buy their homes;
Retention - holding back part of a mortgage loan until repairs to the property are satisfactorily completed;
S
Scheme for Maximum Advances (SMA) - see Indemnity premium;
Sealing Fee - a fee charged when the mortgage is paid off;
Search - enquiries about the property, raised by a solicitor with the local authority;
Second Charge - mortgage ranking behind a first mortgage;
Second Mortgages - company or building society who have registered a mortgage behind that of the first mortgages;
Sole agency - the choice of a single estate agent to act on the seller's behalf, incurring a lower fee than a multi-agency sale;
Solicitor - a lawyer who deals with the sale/purchase of land or property;
Stamp Duty - a tax paid on property purchase; it applies if the property costs more than £59,999;
Subject to contract - words to indicate that an agreement is not yet legally binding;
Survey (Structural Survey) - inspection of property for structural damage, carried out by a Structural engineer or Charteled Building Surveyors;
Surveyor - person who conducts the survey;
T
Tenant - a person who pays rent to the landlord for the use of a room, house etc;
Tenants in common - tenants who own unequal shares of a property and are free to dispose of their share in any way they wish;
Term - period of a loan or mortgage (months, years);
Title - the legal ownership of a property or land;
Title Deeds - documents relevant to the previous and present ownership of a property;
Total amount payable - the total cost of repaying a mortgage;
Transfer deeds - the Land Registry document that transfers legal ownership from seller to buyer;
U
Under offer - a term describing a situation in which the seller has accepted the buyer's;
V
Valuation - an inspection of the property for mortgage purposes. Also the report that the lender requires from the surveyor;
Variable interest rate - rate of interest payment that fluctuates over time with general interest rates;
Vendor - the buyer of land/property;
W
Wood rot - a major cause of damage to timber floors which should be discovered during the survey;
X
EXtension - a common home alteration which is subject to building regulations and planning permission;
Y
Z
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