Greenacre Estate Agents Glossary
Annual Percentage Rate (APR)
The total charge for the loan including fees interest expressed as a percentage.
Arrears
Mortgage payments which have not been paid as requested and are overdue.
Building Survey
A full inspection of the property by a surveyor on behalf of and paid for the buyer.
Buy to let mortgage
A type of mortgage specifically designed for people buying a property with the intention of letting it out.
Capital
The amount you owe excluding costs and interest outstanding
Contract
The written agreement between the seller and the buyer of a property to transfer ownership.
Conveyancer
Solicitor is licensed conveyancer who deals with the legal aspects.
Freehold
Outright ownership of the property and the land on which it stands.
Ground Rent
An annual charge payable by leaseholders to the freeholder.
Guarantor
A person who promises they will pay the borrower's debt, usually if the borrower fails to.
Gazumping
When the seller, having already accepted an offer but before contracts are exchanged, accepts another, higher offer from someone else.
Home-buyer's Survey
A surveyor's report on a property which is less extensive than a building survey and is paid for by the purchaser.
Interest only Mortgage
A mortgage where only interest is paid during the mortgage term. The capital is repaid at the end of the term, usually from the proceeds of an investment plan such as an endowment policy.
Loan to Value (LTV)
The size of a mortgage as a percentage of the value of the property or its purchase price.
Lender
The bank/building society where you have your mortgage.
Leasehold
The right to possession, but not ownership, of a property for an agreed period of time. Ultimate ownership remains with the freeholder.
Mortgage Term
The period over which the mortgage loan is to be repaid.
Negative Equity
When the value of the property has fallen and is less that the loan secured on it.
Payment Protection
Insurance which pays your monthly mortgage payments, usually for a specified period, if you lose your income through sickness, injury or unemployment.
Repayment Mortgage
A mortgage where the capital borrowed is gradually repaid over the agreed term.
Remortgage
Repaying one mortgage by taking out another secured on the same property, possibly to take advantage of a particular mortgage product or better interest rate from a different lender.
Repayment
When a mortgage is repaid (Also called redemption).
Surveyor / Valuer
The person qualified by the Royal Institution of Chartered Surveyors or the Incorporated Society of the Valuers and Auctioneers to carry out valuations and surveys of properties.
Subject to Contract
The phrase used before exchange of contracts which allows either party to withdraw without incurring a penalty.
Standard Variable Rate
Traditionally, mortgage interest rates would rise and fail in line with the Bank of England base rate.
Specialist Report
A report required by the lender into particular defects discovered at the property to be purchased, such as dry or wet rot, damp, etc, before they will agree the mortgage.
Stamp Duty
A government tax payable on exchange of contracts on properties of a
certain value.
Title Deeds / Title Documents
The legal documents which provide proof of ownership of a property.
Transfer Deeds
A form which provides details of the transfer of ownership to be entered on the Land Registry register.
Valuation
An inspection of the property to ascertain its acceptability to the lender as security against the mortgage loan, for which the borrower may have to pay.
Vendor
The person(s) from whom you are buying your new home.
