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COVID-19 UPDATE: We are still open and operating safely for buyers, sellers, renters and landlords. Find out more
COVID-19 UPDATE: We are still open and operating safely for buyers, sellers, renters and landlords. Find out more
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Mortgage Loan.
A recommendation about the most suitable mortgage for you made by an adviser who is regulated by the Financial Conduct Authority (FCA).
The overall cost of a mortgage, including the interest and fees.
A certificate some lenders will give you showing the amount they will probably be prepared to lend you. This is not a guarantee but can be helpful when registering with estate agents.
Annual Percentage Rate, the total cost of a loan, including all costs, interest charges and arrangement fees, shown as a percentage rate and easily comparable with mortgage interest rates.
The sale of a property to the highest bidder.
The amount of loan owed at a particular time
The interest rate set by the Bank of England is known as the Base Rate. This can change at any time. [View Base Rate Changes]
The individual(s) designated to receive the benefits from a policy.
A temporary loan advanced to help buy a new property before the existing one has been sold.
Insurance against the cost of repair or rebuilding a property from scratch following structural damage, for example by flood, fire or storm.
An investment where you buy a property – usually with a mortgage – and rent it out.
Some lenders offer "cashback" on completion of your house purchase. This could be a fixed lump sum, or an agreed percentage of the mortgage loan. Remember to check whether there will be conditions attached.
A number of linked property sales where exchange of contracts must take place simultaneously.
The date set for submission of offers when more than one party show interest in the property.
Completion of the legal transaction with all monies and documents having been distributed. This is also when the seller's solicitor will instruct the estate agent to release the keys.
See under 'Subject to contracts exchanged'
Insurance against accidental damage or theft of all moveable contents, including furniture, appliances and soft furnishings.
A formal agreement between the buyer and the seller, usually prepared by a solicitor or licensed conveyancer, detailing the terms and conditions of the sale.
Person other than and similar to a solicitor who may conduct the conveyancing.
The legal work involved in buying and selling properties.
Levied by local councils to cover the cost of local amenities and services.
A condition, contained within the Title Deeds or lease, that the buyer must comply with, which is usually applied to all future owners of the property. A restrictive covenant is one that prohibits the owner from doing something.
Pays out a lump sum if you are diagnosed with a specified critical illness.
Typical illnesses include:
Life insurance an employer provides that may be linked to a pension scheme. As cover ceases should you change jobs this is not normally suitable for mortgage protection.
This provides a lump sum in the event of death during the policy term. The amount of cover (sum assured) decreases over the term of the plan. This type of cover is usually used as the basis of a Mortgage Life Insurance plan to protect the declining balance of loan.
Legal documents assigning ownership of a property and/or land.
A period of time that has to pass before benefit from a policy is claimed. Typically Income Protection policies will have a choice of deferred periods to suit any benefit you may be eligible for from your employer.
Sum of money that represents the personal capital that the buyer is putting toward the purchase of the property.
Fees, such as Stamp Duty, Land Registry and search fees on top of conveyancing which you normally pay via your solicitor.
A set percentage discount below your lender's Standard Variable Rate for a predetermined length of time. Your monthly payments can still go up and down with this type of rate.
Unconfirmed version of the contract.
A charge made by the lender if the borrower terminates a mortgage in advance of the terms of the particular mortgage. Normally occurs when the borrower has benefited from reduced payments or cash back in the early period of a mortgage.
It's important to remember that if you repay your mortgage early it can mean you end up paying an additional payment depending on the type of mortgage you have.
All properties let for private residential purposes must have an EPC, unless the property is Grade II Listed, It is used to report the energy performance of a property.
The difference between the value of a property and the amount of mortgage owed.
The point at which the sale becomes legally binding from which neither party can withdraw without financial penalties - In Scotland see 'Missives Concluded'.
Financial Intermediaries Managers & Brokers Regulatory Authority.
The body that regulates the financial services industry in the UK.
Offers are invited at the price shown
A fixed interest rate is applied to your mortgage for a predetermined time, during which your monthly repayments will stay the same.
All non-structural items included in the purchase of a property.
Ownership of the property and land upon which the property is situated.
A full structural survey looks at all the main features of the property, including walls, roof, foundations, plumbing, joinery, electrical wiring, drains, and garden.
The practice by a seller accepting a higher price than that previously agreed with someone else.
The practice by a buyer lowering his offer just before exchange of contracts.
The annual fee which a leaseholder pays to a freeholder.
Premiums will stay the same throughout the term of a policy.
Required by some lenders if your loan is for more than a required percentage of the value of the house. Although the borrower pays the premium, the policy protects the lender not the borrower.
Insurance to protect the lender from financial loss in case you fall significantly behind with your mortgage payments and your property is repossessed. This might be required if your borrowing exceeds 75% of the property's value.
The homebuyer's report comments on the structural condition of most parts of the property that are readily accessible, but does not involve in-depth investigation or the testing of water, drainage or heating systems.
A non-profit making body which lets you buy a percentage of the property and pay rent on the rest.
Independent Financial Advisor
Investments Managers Regulatory Organisation. Regulates investment managers.
Provides tax-free income in the event of you not being able to work due to ill health. Payments are usually paid monthly until you either return to work, the policy term expires, you retire or death occurs.
When a seller instructs an estate agent to market a property.
You pay the interest on your mortgage to the lender each month until the end of the mortgage term. The capital borrowed does not reduce and it is your responsibility as a borrower to ensure that you have a method or means of repaying the capital at the end of the term.
Where two estate agents work together to market a property.
A mortgage where there is more than one individual named responsible for the mortgage.
A Land Registry certificate proving ownership of property.
The Government organisation that holds records of all registered properties in England and Wales.
Life Assurance Unit Trust Regulatory Organisation.
To be given ownership of a property but not the land it is built on. This normally requires payment of ground rent to the landlord. A leasehold is normally offered for either 999 years, 99 years or shorter terms.
This fee may be charged by the lender to cover their administration costs in setting up your mortgage.
The interest rate set by the lender and varies from lender to lender. If your mortgage is on this rate your payments will vary in line with lender rate charges.
A policy that pays a fixed lump sum upon death during the policy term.
An application made to the appropriate Local Authority requesting details of any planning or other matters which might affect the property being sold.
A charge made towards the upkeep of a leasehold property.
Completion of the legal transaction with all monies and documents having been distributed. This is also when the seller's solicitor will instruct the estate agent to release the keys.
A legal document relating to the mortgage lenders interest in the property.
A decreasing term life insurance plan that’s designed to help protect a repayment mortgage by paying a lump sum in the event of death during the policy term. These are usually flexible plans with options available to pay insurance premiums and mortgage payments in the event of you becoming incapacitated by illness or injury.
A formal written offer made by a bank or building society to lend an approved amount to purchase a property.
This is the period of time over which your mortgage is proposed to run. Remember the longer your mortgage runs, the more interest you are charged overall so care needs to be taken to ensure that the term chosen is suitable.
The selection of two or more estate agents to act on the seller's behalf, usually incurring a higher fee than if the sale is completed by a sole agency.
When the value of a property is less than the outstanding sum owed on a mortgage.
A bid made by a prospective buyer, this is not legally binding.
Offers are invited above the price shown.
Independent professional bodies who investigate complaints on behalf of customers against estate agents, solicitors and insurance companies.
The term used when a property is being sold, where a tenant has legal right of occupation.
Premium Payments to the insurance company to purchase cover.
Covers the cost of policy premiums during periods of unemployment due to illness or injury. Also known as waiver of premium.
The way in which most house sales are completed in England and Wales.
Your home or the property you wish to sell or buy.
Your monthly repayment includes part interest and part capital repayment. So long as you meet all of the payments required by the lender your mortgage will gradually reduce until it is repaid in full at the end of the mortgage term.
Monthly interest combined with capital repayment against the original sum borrowed.
When loans are in default the mortgage lender can repossess the property and sell it so they can repay the debt.
Holding back part of a mortgage loan until repairs to the property are satisfactorily completed.
Premiums are very likely to change over the term of the policy, an insurer may choose to review premiums at set intervals such as every five years.
A verbal agreement from the seller.
Checks of local council records for planning applications and restrictions, etc.
The choice of a single estate agent to act on the seller's behalf, incurring a lower fee than multi-agency.
Legal expert handling all documentation for the sale and purchase of a property.
A tax paid to the Government by the buyer upon completion.
The interest rate set by the lender and varies from lender to lender. Your monthly payments will vary in line with lender rate changes.
Words used to indicate that an agreement is not yet legally binding.
The amount of money you are insured for from outset of a policy.
An inspection made by a qualified surveyor. There are three main types of survey. Valuation report (for mortgage purposes), Homebuyers report (also comments on general condition) and Full Structural survey (examines structural detail).
The process whereby the seller asks for written offers on a property usually with a set closing date.
The sum assured from a life assurance plan becomes payable if you are diagnosed with a terminal illness where life expectancy is considered to be less than 12 months.
The ultimate record of ownership of a property, the evidence of which is found in the title deeds.
This type of rate is usually defined as a percentage amount above, below or equal to the Bank of England's Base Rate. As the Bank of England can change rates at any time your monthly payment can vary as your rate follows or "tracks" this base rate.
The Land Registry document that transfers legal ownership from seller to buyer.
By placing the benefits of a policy “in trust” you can ensure that the correct person receives the proceeds. Assets owned in a trust do not form part of an estate of a deceased person.
When the seller has accepted an offer on the property but contracts have not yet been exchanged.
A person who assesses and classifies the degree of risk that a proposed insurance represents.
Normally charged by the lender to carry out a basic inspection of the property. The resulting valuation report is solely for the lender's benefit and is used to assess mortgage suitability.
Rate of interest payment that fluctuates over time inline with general interest rates.
The legal name sometimes used to describe the seller of the property.
Offer from prospective purchaser, not legally binding on either party.
Mode of commencing legal proceedings.