A :

Auction : Way of selling a property to those who wins the bid.

Additional Security Fee : It is the charge paid to the lender to protect from the borrower evasion.

Actual Percentage Rate : It is the actual cost of a loan.

Agreement : It is a written document between the seller and buyer predicting rules and regulations about the property and sale.

B :

Bridging Loan : It is a provisional loan to buy a new property before selling your old property.

Building Insurance : It is the insurance coverage if any structural damage occurs.

C :

Capital : It is the total amount of the money on loan.

Chain : It is a process where the sellers and buyers are linked together and depends on one another to complete a transition. If one link collapses, the whole chain will be disturbed.

Charge : It is the security for the lender when granting a loan.

Completion : This term is used when the ownership is transferred from seller to buyer.

Contents Insurance : It is the insurance to cover any damage or loss to the belongings in the property.

Contract Race : when to or more buyers try to purchase the same property and the seller will sell the property to the first party to exchange the contract is called Contract Race.

Conveyancing : It is the legal work, involved in transferring the ownership from seller to the buyer.

Contracts : It is an agreement between the buyer and the seller depicting the terms and conditions to complete the buying/selling transaction.

D :
Disbursements : These are the third party costs paid by the solicitor.  These payments include stamp duty, land registration and other miscellaneous costs.

Down Payment : It is the initial amount of money paid by the buyer to the seller to reserve the property. It is also known as deposit.

E :

Endowment Mortgage : It is a type of mortgage in which you can made monthly payments into an endowment policy that is used to pay-off the loan at the end of the term.

Estate Agent : Estate agents are the mediators between the buyers and the sellers. He will advertise the property on behalf of the seller by charging some fee usually some percentage in the selling price.

Excess : The initial amount we have to pay on an insurance claim.

Exchange of Contracts : It is the point where the buyer and seller exchanges the contracts to transfer the ownership from seller to the buyer and they are bound the terms and conditions under law.

F :

Failed Valuation Survey : When the lender turns down a mortgage on reading the reports of the surveyor.

Freehold : It is the complete ownership of the land and property.

G :

Gazumping : When the seller agreed to a fixed deal with one party but then consecutively accepts another party’s highest deal.

Gazundering : When the buyer accepts a deal with the seller but subsequently reduces the amount before exchanging the contracts.

H :

Homebuyer’s Report : It is the report given by the surveyor about the property and valuation on behalf of the buyer.

Home Information Pack : It is the compulsory information pack which is fixed by the seller before marketing the property.

I :

Independent Financial Advisor : A qualified professional about the market place to choose the financial products to met the needs of his client.

Interest Charge : It is the amount charged by the lender on the borrower.

J :

Joint Agents : Two agents are together guided by a seller to market his property.

L :

Land Registry : It will be done by the solicitor on behalf of the buyer to attain the ownership to the buyer.

Lease : Letting the others to live in his/her property for a specified time on an agreement by the owner. This is also known as tenancy.

Leasehold :  Attaining the ownership of the lease by paying some fixed amount yearly.

Lender’s Legal Fees : It is the fees incurred by the lender in arranging a mortgage which is passed to the borrower.

Loan to Value : It is the ratio of a mortgage loan to its market value.

Local Authority Search : It is a search carried out by the solicitor to inquire if there are any legal authority notices on the property in future.

M :

Mortgage Indemnity Guarantee : It is the fee charged by the lender to protect from the borrower defaulting.

Mortgage : It is a long term loan to purchase a property on which the property is kept as security.

Mortgager : Mortgager is the buyer i.e. those who take loan.

Mortgage Term : It is the period in which the mortgage is to be repaid.

N :

Negative Equity : This occurs when the price falls less than the mortgage value.

O:

Ombudsman : It is an independent body which is responsible for investigation of complaints on behalf of the consumers.

P :

Premium : It is an amount paid on an insurance policy.

Principal : It is the total amount borrowed from a lender on which the interest is levied.

Public Liable Insurance : This insurance will cover the injury or death to anyone on or around the property.

R :

Redemption : Completion of the mortgage loan.

Repayment Mortgage : Mortgage with monthly repayments containing capital and interest with it.

Repossession : If the mortgage repayments are in pending and the lender will take his possession back that secures the loan.

S :

Sole Agent : If the seller is fixed to one agent to market his property, he is known to be sole agent.

Solicitor : Person who is professional legal expert who will acts on behalf of buyers in preparation of documents regarding the property.

Stamp Duty : It is a government tax to be paid by the house owners which costs above £60,000.

Structural Survey : It is a detailed report on the construction, any defects in the property by a chartered surveyor.

Surveyor : A person who performs a survey on the structure of the property and general state of the house.

T:

Tenancy : A person who lives in owner’s property under terms and conditions by paying some rent on monthly basis.

Title : Right to ownership by law.

U :

Under Offer : It is the status of the property from which the seller accepts to deal until the exchange of contracts.

V :

Valuation Survey : It is the survey carried out by the lender to ensure that the price of property is not less than the proposed loan.

Y :

Yield : It is the income generated by a property, expressed in percentage of the possession value.