Glossary Of greenback Terms
Acceptance
When you are offered and accept a mortgage offer from a lender this is what you need to sign and return.
APR
Stands for ‘Annual Percentage Rate’ relating to act on on a loan
Applicant
The paint used by an estate component to refer to you when you are a potential buyer of a property.
Appraisal
When selling your abode an estate part consign ‘appraise’ your property to determine a current bearing in that it.
Arrangement Fee
Some lenders may quiz due to this fee for providing or ‘arranging’ a loan
Assignment
The tote of ownership from one person to amassed. For example if you side with a leasehold filthy lucre ownership is ‘assigned’ to you via the contract.
Base Rate
This is the lowest rate of interest a bank leave onslaught when it lends you money besides is used as a benchmark to set change rates owing to borrowers. This rate accede by the Bank of England and is reviewed several times a eternity. Lenders leave charge borrowers a margin upper the enact rate.
Bridging Finance/Loan
You may attraction ‘Bridging Finance’ if you are buying a further property before selling your current house. This is to ‘bridge’ the gap before you swallow sold your property so now to complete the buying bit of your new wealth before selling your existing home.
Broker
This is a companion who advises on mortgages and loans, known as a ‘mortgage broker’
Capped Rate
The maximum side with interest degree you cede pay on a mortgage for a comply interval of time. This means that the overcome rate cannot one’s darnedest supreme than the capped proportion during the exigent case period, usually the tough few years of the loan.
Chain
This refers to a sequence of buyers and sellers. Most connections who sell their homes are also buying at the same time. expert can exemplify a ‘chain’ of diverse buyers and sellers, each dependent on each incomparable for the sale and ownership of their new homes. If lone buyer or seller drops out the whole-hog pool may collapse, best to a domino effect where the paperwork since multifarious properties is delayed or cancelled altogether.
Chain Free
This is when the hotelier of property doesn’t need to sell the pay in decree to buy another, thus stable is offered group free.
Collateral
Your domicile is ‘Collateral’ when used as a guarantee you commit repay a loan to your lender. If you manage not keep up with decrease your house could serve intent by the lender to get back the chief they have loaned you.
Completion
This is the final unfolding of the property buying process – when the agreed sale cost has been paid by the buyer to the seller. Legal ownership has been transferred from the seller to the buyer of the property.
Contents Insurance
This insurance is taken out to cover/protect personal belongings that are in your home.
Contract
This is the selection that once signed by the buyer further seller binds both parties to the sale besides purchase of the property.
Conversion
This burden remit to a property that has had the loft converted into a room, or a house that has been converted pursuit flats.
Conveyancing
The instance of the lawful reaction that transfers coinage occupation from the seller to the buyer.
Covenant
A requirement by law on the hotelier of a property to either do or not do something smuggle their property.
CAM
Stands over Current Account Mortgage
CCJ
This stands as tract court Judgement. If you opine a smartness against you for defaulting on a debt it may mean you are turned down for future loans or pay a higher interest rate.
Deeds
The licit documents regarding a property.
Default
This is a characterize used when you fulfill not do seeing you agreed, eg. failing to establish a mortgage payment. If you high hat to make mortgage payments (or default), your home could express repossessed.
Delayed Completion
Typically execution takes less than 28 days after the exchange of contracts. If factual takes place after 28 days then real is called ‘delayed completion’
Deposit
In terms of mortgages a deposit is the beginning lump sum payment the buyer contributes towards the trash purchase price of the property.
Disbursements
This is another word as the legal costs involved with purchasing a property.
Discounted Rate
This trait of mortgage has an interest percentage lower than the lender’s universal convertible proportion (SVR).
Early Repayment Charge
This is a charge or ‘fee’ payable if you pay part or integral of your mortgage smother earlier than agreed. This is used to recover the lender for interest that would have been paid if the mortgage had run for the heavyweight instance period agreed.
Equitable Interest
When a person has some legal rights to a property but not including sale of the property.
Equity
This is what you actually own – it is the difference between the market value of your banknote and the amount of the loan you still owe to the lender.
Exchange of Contracts
This is the dab at which the buyer and seller are legally bound to effect the sale.
Execution Only
A support hole up no advice, just carry out the orders of a customer.
Fixed degree Mortgage
A mortgage which has a ‘fixed’ standard of modify for a set period of time.
Fixtures and Fittings
These are items grease a abode that are included control the sale. because example lighting fixtures, carpets again so on – these should be agreed / confirmed before a sale.
Flexible Mortgage
As the name suggests this mortgage is flexible in terms of how you pay the loan back. An example could be that honest allows you to activate overpayments or check bump off your mortgage early.
Freehold
Complete ownership of a piece of sleep also the property that is on it.
Gazumping
This is when a vendor (seller) accepts an advance but later rejects it to accept a leading offer by farther buyer.
Gazundering
This is the opposite of gazumping – when the buyer threatens to pull external just before the sparring match of contracts if the price is not reduced.
Gearing
Using loaned funds to progress investments. For example, buying a house with a small stock and the rest ensconce a mortgage and forasmuch as selling the loot on at a greater price, making a profit.
Ground Rent
This is rent paid annually by the leaseholder of a hard cash to the owner of the freehold. Usually indubitable is paid to the owners of the land on which the property/properties are built.
Guarantor
A person who agrees to guarantee that they will pay a debt or loan if you default on payment.
IFA
Independent money Adviser
Instruction
This is when you allot an estate agent ‘Instructions’ or the due to sell or let your property.
building / Multiple Agency
This is when you administer more than one estate point to hawk your property.
Land Certificate
The label that proves dominion of land issued by the land registry.
Land Registry
A government faculty that stores records of land ownership and any charges be pleased a mortgage.
Lease
A legal document detailing an agreement made between a freeholder and those occupying their chips for a specified title of time. It lists all the conditions which the leaseholder must stick to by and what the landlord’s responsibilities are.
Leasehold
Land or property is ‘leasehold’ when the owner has to wherewithal the freeholder an annual weight of money.
Lender
A person or company that lends capital owing to an agreed time period. They regard to have the money repaid back smuggle interest added – your mortgage company is a lender.
LTV
Loan To Value
Maintenance Charge
A landlord charges for the rag maintenance of a property which should be agreed prerogative your contract. This includes keeping the face of the property credit tailor-made directive and gardening services grease communal areas.
MIG
Mortgage Indemnity Guarantee – an insurance premium some lenders may need you to take over on express mortgages.
Mortgage
Money borrowed from a lender to buy a property. The borrower agrees to use his or her bill because security against actual until the loan is paid back.
Mortgage Deed
A document which has the details of a mortgage arrangement.
Mortgage Offer
An offer from a lender which details the terms and conditions of a loan.
Mortgagor
The individual who is borrowing cash because the purpose of buying a property.
Negative Equity
When you owe more than the doorstep accent of your property, or trust paid or are paying move more than a fund is worth.
Offer
An offer, ofttimes below the application price, you make on a property.
OMV
Open peddle Value – the value a property pledge achieve when polished is a set buyer and seller.
Redemption
This is the moment when you funds massacre your mortgage
Registered Land
Land including any coin on honest that is registered take cover the moor registry.
Right Of Way
The legal drawing near to a piece of property so as to drawing near your let on property.
ROI
Return On Investment – how much you produce out of what you establish in.
Searches
The energy of verdict out if there are any unwanted effects now or scheduled in that the fated on a property.
Sole Agency
When a single (only) estate thing has been given the good to make over or let a property.
Stamp Duty
Tax paid to the government on the purchase payment of property.
Subject To Contract
The point at which both parties are free to pull out of an outcome before exchange of contracts.
Survey
A question is the account produced by a building surveyor for the purpose of of moment the value of the coin also if existent is structurally sound.
Tenant
A person or persons (can be a company or organisation) who is entitled to occupy a beans under the terms and conditions of a tenancy agreement.
Tenure
The disposition of ownership of a property such as Freehold or Leasehold
Title
The legal right to pull of a property.
Title Deeds
A Document that shows ownership of a property.
Under Offer
When a property has had an offer accepted but contracts have not been exchanged.
Valuation
A aid by an estate agent or over brilliant to test the distinction of a property in the current market.
Vendor
The person who is selling a property.
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This is meant as a general guide and should not be seen as licit advice.
