The term used when an individual increases their borrowing to release some of the equity available in their property 

An agreement between two or more people to enter into a legal arrangement

Same as a Decision in Principle – An agreement to lend based on initial assessment of your income and outgoings

The interest payable on what you have borrowed is added up with all other fees, eg product fees and then expressed as an annual rate of charge

The standard interest rate calculation which reflects the total amount of interest that will be paid over the entire term of the loan

A person who makes an application for a mortgage

The fee charged for the administration of the mortgage 

This is the price the seller/vendor wants to get for sale of their property, this can be negotiable

A type of tenancy agreement which entitles the landlord to a possession order immediately after the initial agreed period

A person who is given the responsibility to deal with someone else’s financial or other personal affairs through a legal document called a Power of Attorney

A financial institution licensed to receive deposits and make loans

This is the variable interest rate set by the Bank of England monetary policy committee (MPC)

The rate at which bank of England lends to other financial institutions

A person who is insolvent

This is a formal process for dealing with personal insolvency

Spending to meet day to day needs, eg food, heating

Things such as clothing, personal items

This is a document issued by a lender with no requirements to be met

A non-refundable fee charged on some mortgages to secure a particular mortgage deal

A person who takes a loan from a lender under an agreement with an intention to pay it back later typically with interest 

This is a short term loan taken out by a borrower against their current property to finance the purchase of a new property, can be useful when buying a new property and sale of a previous property will not complete in time

The fees a mortgage broker charges for their service to arrange a mortgage 

This covers the cost of repairing damage to the structure of the property, the lender will always expect an individual to have building insurance before completing on the mortgage

These are designed to set standards for the design and construction of buildings

A building society is a financial institution owned by its members as a mutual organisation

This is a thorough and complete inspection of the property carried out by a qualified surveyor

Mortgages taken out by individuals for business purposes

This is an arrangement between self employed people to work together

The person looking to buy the seller’s property

If you are planning to buy a property to rent out then you need a buy to let mortgage

This is tax on the profit when you sell a property that has increased in value

Your monthly payment is made up of capital, which is the amount you have borrowed and interest, which is what the lender charges you on the amount you have borrowed

Adding the arrears to the total amount owing on the mortgage, with repayments increased to reflect the additional amount owed

Buying a property without any form of finance

This requires landowners to pay for the repair of the part of the church containing the altar

A commercial mortgage secured on a commercial property, for eg on a factory instead of a residential property

These are generally credit agreements and other contractual commitments, eg loans, mortgage payments

A form of land tenure of a unit within a multi – occupancy building but with shared responsibilities for common services

The solicitor ensures all monies have changed hands and let you know when you can move into that dream home

A fee for electronically transferring the mortgage funds to the acting solicitor, licensed conveyance or existing lender

Its a process of buying a property under the market value

This is a type of valuation which is focused mainly on the condition of the property, without providing a market value

This is where the purpose of arranging a mortgage is not wholly for business purposes, an eg of this could be someone who has tried to sell their property but has been unsuccessful so resorts to a buy to let arrangement

This covers the cost of repairing or replacing objects within the property

Final step in house buying, generally this is signed when the solicitor has carried out all necessary searches

In simple terms this is an individual who carries out all necessary searches in the house buying process, for eg the local authority searches, environmental searches, etc

The process to transfer a property from one owner to the other

Lending to a limited company either for residential or commercial purpose

This is a judgment that a county court issues when someone has failed to pay money they owe

Restrictions or conditions placed by a landowner on those who subsequently buy or lease the land

Review of an individual credit profile by a lender using a number of sources, eg bank statements

An organisation with vast database of information on individuals relating to their credit history

This is used by lenders to decide whether to lend you money, how much to lend you, interest rate to charge, etc

A person or company to whom money is owning

Lump sum benefit payable if an individual is diagnosed with a specified illness or undergo a surgical procedure 

This is the regulatory term for the process of verifying a customer and their identity

An order granted by the official receiver to an individual with debts less than £20,000 and limited assets who cannot repay their debts

A person, country or organisation that owes money

An agreement to lend based on initial assessment of your income and outgoings

Failure to fulfil an obligation, in particular to repay a loan

The amount of your own money available to support your home purchase, generally the more of this you have the less you borrow from the lender 

Appointed by the Court of Protection to look after the affairs of someone who becomes mentally incapacitated

These are usually areas such as conservation areas, national parks, etc

This is a type of valuation carried out internally by a lender using computer software and does not require an inspection of the property

This is a standalone single dwelling house for residential purposes

The lender normally gives you a discount on your payments for a set period, following which your repayments are placed on another payment method, for example, no payments for first 6 months then variable rate payments for set period

This is when interest charged takes into account any changes in the mortgage balance from a day to day basis

This is the distribution of various costs to all parties involved in the transaction

This is applicable in instances when you have to pay a lender to release their hold over a property once you have settled your mortgage balance in full

The person granting the powers to their representative

Is a right that one property has over the land of another, eg rights of way 

Tells you how energy efficient a building is and gives it a rating (A being very efficient and G – inefficient)

This is the difference between how much your property is worth, the balance of your outstanding mortgage and any other debts secured on the property

This is the borrower’s right to settle the mortgage debt in full at any time up to the point of sale 

A way of releasing extra money by borrowing against the equity in your home 

A person, organisation whose role involves selling, renting, and sometimes managing buildings and land for its clients

This is an enhanced version of the Key Facts Illustration (KFI)

This is the swapping of signed contracts between the seller and the buyer

This is where a firm acts on an individual specific instruction and the firm gives no advice

This is usually the closure administration fee payable to service providers when you fully repay your mortgage

This is when some lenders add a clause in the mortgage offer that the borrower keeps their mortgage with that lender for a period of time

This enables the borrower to buy a share in the property with the remaining share held by the lender, developer or another provider

Describes the situation in which people are unable to access financial services because they are unable to produce a type of document required

This is the first legal charge secure against the value of the property

An individual who has never owned a property 

Are items that the vendor would take with them on sale, example, curtains

The payments you make each month are fixed until a particular time and do not change in line with interest rate fluctuations

This is normally the date when a fixed rate come to an end

These are generally permanent additions to the fabric of the property, example, fitted kitchen

This is a residential unit in a high rise building 

The term used when part of a freehold property extends above or below another person’s property but is not next to or touching the ground

This is the legal process a lender takes control of a property, evicts the homeowner and sells the home after the home owner is unable to make full capital and interest payments on their mortgage

This is one where the borrower’s income is in a different currency from that applying to the mortgage

This is a term used to describe the ownership of both the property and land that it is built on

This occurs when a person deliberately sets out to obtain funds from another person or organisation by dishonest means

This is an exclusive right to enjoy the possession and use of a parcel of land for an indefinite period

This is a top up to an existing mortgage normally over the remaining term of the existing loan

This body regulates the financial services in the UK

When an individual makes a higher offer on a house than (someone whose offer has already been accepted by the seller) and in doing so is able to acquire the house

Lowering the amount of an offer that one has made to the seller of a property just before exchange of contracts

This is a sale of a property to a family member at a price below market value and this difference between the full market value and the reduce purchase price is used as the deposit for the purchase

This is when a borrower’s deposit for a property purchase comes from usually a family member by way of a gift which is non refundable, and the family member has no financial interest in the property to be purchased

This is expressed as rent as a percentage of purchase price

A formal agreement to accept legal responsibility for the repayment of a loan if the borrower cannot

An individual, company or partnership that provides a guarantee

This is rent paid under the terms of a lease by the owner of a building to the owner of the land on which it is built

A UK government initiative to help first time buyers get on the property ladder

This is a home buying scheme where an applicant with minimum 5% deposit can purchase a new build property up to £600,000 and the government provide a further equity loan to help with the purchase

A type of valuation where the professional surveyor carries out a thorough inspection and detailed breakdown of the property condition

This is a set of documents that provides the buyer with key information on the property and must be provided by the seller or agent

Moving from one property to another

An arrangement where one person buys a qualifying interest in land

This is a report arranged by a seller of a property in Scotland and must be made available to prospective buyers on request

This is increases in the price of houses over a period of time

These are generally properties with a minimum of 3 unconnected tenants sharing parts of a property such as kitchen, bathroom and toilet facilities

These are mortgage products containing two difference products, eg part interest only and part repayment

A formal agreement between a debtor and their creditors to make reduced payments towards their total debts over an agreed period of time

Where a person’s liabilities exceed their assets

Your monthly payment only pays the interest you owe. You will still have to pay the capital (the amount you have borrowed) at the end of the mortgage

This is the interest chargeable on the outstanding mortgage balance each day

The rate at which you pay back interest which is generally shown as a percentage of the amount borrowed

This may be standard variable or fixed

These are mortgages available to civil servants with a certain annual income threshold

This is the department that registers ownership of land in Northern Ireland

This is a department that registers the ownership of land in England and Wales

This is a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest

A person who rents our land, a building or accommodation

A form of land tenure where a person has rights over a land for a specific period only

An organization or company that lends money, for example a bank, building society

The fees a lender normally charges in arranging a mortgage for an applicant

This can be defined as the temporary giving of money or property to another person with the expectation that it will be repaid

This is when the term of the borrowing exceeds an individual’s retirement age

A lump sum benefit payable upon death or upon earlier diagnosis of a terminal illness

Enable older homeowners over a certain age to release some of the equity in their property

A form of partnership where the business is a separate legal entity from the partners who act as agents of the partnership

These are properties that are of significant architectural or historical value

What the money being borrowed will be used for

It is the amount you need to borrow in relation to the value of your property. For example, if you are borrowing £80,000 to buy a property worth £100,000 then your LTV is 80%

This is generally an area a lender will lend, for some lenders lend in all UK including Scotland & Northern Ireland, whilst other only lend in England & Wales

The rate at which banks lend to each other

This is when an individual makes an agreed one-off payment to reduce the outstanding balance of their mortgage

This is applicable when a local authority charges for answering your conveyancer’s questions about the property you want to buy

The highest age a lender will consider when lending

The highest term a lender will lend to, for eg some lenders will lend for a maximum of 25years, others 30years, and some 35

The lowest age you have to be in order to get a mortgage from a lender

The lowest term a lender will lend to, for eg some lenders will lend for a minimum of 5, 8, 10 years, etc

A person under the age of 18 years

This is indication of the monthly mortgage payments at the current stated interest rate

Is a loan taken out to buy a property or a land. The loan is secured against the value of your home until the loan is paid off

A specialist with in-depth knowledge of the market who is able to look through a range of products to meet your needs

A person, organisation or company that arranges a mortgage between a borrower and a lender

A tool used by lenders to provide an illustration of how much loan you can borrow based on your income, expenditure, number of dependents, etc

A legal document which once signed confirms you are happy with the terms of the mortgage offer from the lender

Formal document issued by a lender to a borrower that confirms the lender is happy to lend the amount you want to borrow

In effect this is a middleman who operate between the lender, the intermediary or customer

These are companies who process mortgage applications on behalf of brokers for submission to a lender

This is the length of time over which a mortgage is taken

Sometimes known as the lender

Sometimes known as the borrower

This is a situation in which the market value of a property falls below the amount of mortgage loan secured on it

Rent minus running costs as a percentage of the purchase price

This is a property that is yet to be occupied for the first time

This is a document issued by a lender which sets out certain requirements to be met

The number of people making the application for the mortgage

A type of mortgage where your savings and current account balances are linked to your mortgage

Enables the attorney to carry out activities relating to the donor’s financial and property affairs

The house as it was originally built

This is the outstanding amount owed to a lender under a mortgage

This is used to describe a sum of money in addition to the original sale price a seller of a land may be entitled to receive if the buyer complies with certain agreed conditions

You can make additional payments on top of your normal monthly payments without incurring a charge, for example most lenders will allow an additional payment equivalent to 10% of the mortgage balance each year

Short –term high interest lending designed to be paid off on the borrower’s next pay day

A period of one or more months when you don’t make repayments on your mortgage, even though interest continues to accrue during this time

They act in managing the estate of a deceased person

This is a permission sought from the local council to extend or build a property according to certain building regulations

The ability to transfer the existing mortgage to another property

Using precast concrete panels attached to a steel or timber frame

This is lending to borrowers who meet a lender’s standard criteria and present normal risk

A person who is borrowing to purchase a home for themselves and/or their families

An individual who has worked in the home finance sector for at least one year

Generally evidence of where you have lived in the last three years, this can be in the form of original utility bills received in the post

Evidence of who you say you are, for eg a driving licence, passport, etc

Evidence of your income, for eg by way on payslips, bank statements, signed company accounts, etc

This is the value of a property in the current market conditions

This is the period at which a fixed or tracker rate applies

The period during which the fixed, tracker, or discounted rate applies

This generally refers to the period the lender provides to an individual to consider the contents of a mortgage offer

This is a department that registers ownership of land in Scotland

This is the valuer’s estimate of the cost of rebuilding the property from scratch in the event of destruction by fire or another catastrophe

This is a process by which an insurer passes on some of the risk to another insurer or company in return for a premium

When a person uses a new mortgage to repay an existing mortgage and transfer from another lender

This is the proportion of the mortgage payment covered by the anticipated rental income

The rent payments you receive from a tenant when you rent out a property

This is a government scheme that has been set up to help individuals own their first home, even if you can’t afford a deposit in current time

This is the process in which a lender takes possession of your property when you default on your mortgage payments

An area primarily used for housing

This is a situation where a portion of the loan is held back by the lender until the buyer provides evidence that certain repairs have been completed

This is not a mortgage scheme but gives the tenants of a social housing in the UK the right to buy the property they are renting

An example of this could be needing a right of way across someone else’s land in order to access your own property

This gives tenants of housing associations the right to buy the existing property they are renting or an alternative property

This is a loan secured on a property but registered after a mortgage (first charge)

This is a loan that allows an individual to use any equity they have in their property as security, and always ranks behind a first charge mortgage

A financial practice where financial institutions sell on sub-prime and prime debts to other institutions to raise capital

The security for the mortgage debt stated in the mortgage offer document which will be first legal charge over the security

This is a single family dwelling home built as one of a pair that share a common wall

This is the formal term of a bankruptcy in Scotland

Its an affordable home ownership scheme where the buyer purchases a share in a property and pays rent normally to a housing association for the remaining share

A member of the legal profession to deal with the legal matters of the home buying process

This is a way of holding business property through a limited company rather than the individual holding the property in their own names

This is the process where a buyer owning a percentage of a property under the shared ownership scheme purchases additional shares in the property

The tax you have to pay if you purchase a property or land in England and Wales which is worth over £125,000

Professionally prepared to give an inspection of the property and a market value

The payments you make you each month may go up or down as the lender increases or decreases its own interest rates

This is a process where lenders increase interest rate on a mortgage product by a certain percentage to determine if an individual will be able to afford the mortgage payments if interest rates did rise in the future

This is the same as a Building Survey – see Building Survey

Lending to borrowers who represent a higher risk than normal

This is a situation where land below a building drops unevenly causing it to shift

When an individual moves to a new mortgage with the same lender, for example, when their fixed rate period ends and they move onto a variable rate mortgage

These are charges payable by a leaseholder to the landlord for the services the landlord is obliged to provide under the terms of the lease

Paid on completion to cover the legal work carried out during the purchase or home moving process

A type of property ownership where each joint owner owns a set share of the property

An individual who rents a property

Describes the way in which title to a property is held

This is one of a row of similar houses joined together by their side walls

These are usually conditions attached to owning the property ranging from how the property can be used or altered

Similar to the standard variable rate mortgage, but your monthly payments fluctuate in line with increases or decreases in the bank of England base rate

This Is/are individual (s) who are appointed in a document called a trust deed to hold specific asset, or assets on behalf of others call the beneficiaries, and to act for the beneficiaries according to the terms set out in the deed

This is when you own a property with no mortgage secured on it

Land which has not been legally transferred since the introduction of compulsory registration

This is a fees charged by the mortgage lender to instruct a professional surveyor to value a property

The person who is looking to sell their property

Someone who is susceptible to detriment as a result of personal circumstances