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Jargon

APR

This stands for Annual Percentage Rate. It takes into account all fees and other costs in connection with the mortgage as well as the lender’s interest rate. The APR is intended to help you compare the terms offered by different lenders and all lenders must quote an APR in addition to the actual rate of interest applied annually to your mortgage.

Loan Advance

This is the actual amount of money that the lender agrees to lend you.

Completion

The point at which the money to buy your new home is released to the seller, ownership is transferred to you and you can then move in.

Booking Fee

If you wish to take out a special offer mortgage (fixed, capped or discounted rates), a reservation fee may be charged to cover any extra administration involved and the special arrangements required to secure the funds.

Bridging Loan

A temporary loan which enables you to complete the purchase of a new home if you have to do this before completing the sale of your existing house.

Conveyance

The legal document which transfers ownership of unregistered freehold land

Disbursements

The fees your solicitor has to pay (e.g. stamp duty, land registry, search fees, etc.) which will be added to your solicitor’s bill.

Equity

The difference between the value of your property and the amount of any outstanding loans secured against it.

Freehold

The term used to indicate ownership of a property and the land on which it stands where both belong to the owner indefinitely

Gross

A term used in connection with a sum of money from which tax has not been deducted

Lease

A document which grants possession of a property for a fixed period of time and sets out the obligations of both parties, landlord and tenant, such as payment of rent, repairs and insurance.

Leasehold

The arrangement by which property is let by lease by a landlord to a tenant for a fixed period of time.

Mortgagee

A building society, bank or other company which lends money against the security of a charge over the property purchased.

Mortgagor

A person who borrows money, usually to buy a property (i.e. the Borrower).

NET

A term used in connection with a sum of money from which tax has been deducted

Registered Land

Land for which title is registered and recorded at HM Land Registry, the central registry of title to property in England and Wales.

Searches

Enquiries made at the Land Registry, the Land Charges Register and Local Authorities to ensure there is nothing to cause concern about title to land.

Subject to Contract

A provisional agreement made between buyer and seller, before exchange of contracts, which allows either side to back out without penalty.

Term

The length of time over which your mortgage loan is to be repaid

Title

The legal right to ownership of a property.

Title Deeds

The documents showing the ownership of a property.

Transfer Deed

The legal document which transfers ownership of registered land.

Unregistered Land

Land, the ownership of which is established by a bundle of deeds but is not registered on the registered land system