Below, you’ll find a simple jargon buster to help explain what each term means.
Acceptance: This is the document the vendor signs when accepting a lender’s mortgage offer.
APR: Annual Percentage Rate is the total cost of a loan, including any interest, arrangement fees and other costs, displayed as a percentage.&
Arrangement fees: Fees that are changed by the mortgage lender/broker to arrange the loan.
Assign: Transferring the right/interest in a property from one individual to another.
Base rate: This is the rate of interest that the Bank of England charges when lending to other banks. Banks use this as a figure to benchmark from for the interest rates they charge their customers.
Bridging loan: A short-term loan that allows an individual to buy a property before selling their existing property.
Building inspection: An inspection into the physical and structural condition of a property. The report will cover all accessible parts of the property, the surveyor will detail any defects or issues found.
Capital: Also referred to as equity, Capital represents the amount of money that you have put into a property.
Chain: A chain is formed when property sales become dependent on a vendor being able to sell their own property.
Closing date: This term applies to Scotland only and is the date and time by which the buyer’s solicitor must submit their best offer in writing to the solicitor the seller has appointed.
Completion: The point where the sale of the property has been concluded.
Completion statement: Your solicitor will provide you with this document so you can keep a record of all of the financial transactions and costs.
Contract: A legal document that details the agreed terms between the seller and the buyer.
Conveyancing: The process of legally transferring the ownership of the property from the buyer to the seller.
Date of entry: This applies to Scotland only and refers to the date on which the buyer becomes the legal owner and can move into the property.
Deeds: A legal document that proves ownership of the property.
Deposit: The amount paid by the buyer when contracts are exchanged, this usually equates to 10% of the purchase price.