Property Owner's Guide 150 Terms Every Buyer, Seller and Landlord Must Know
terms every landlord, buyer or seller should know.
Greek when the topic of property, buying, selling or letting comes up? Are you confused by all the terms, or perhaps never heard some of them at all before? Do the acronyms make you nervous? This guide aims to help you understand property jargon and terminology! 01279 295524 | @townandcountryhertsandessex.co.uk | www.townandcountryhertsandessex.co.uk
A document you sign and hand back to the mortgage lender to confirm you want to accept its offer. Agreement in Principle (AIP) A document from a mortgage lender that confirms it will lend you a certain amount based on your earnings and usually a credit search and credit score. An AIP will help prove to a seller you’re a serious buyer. 01279 295524 | info@townandcountryhertsandessex.co.uk | www.townandcountryhertsandessex.co.uk
Rate (APR) Often misunderstood, an APR is the total percentage cost of the loan every year. So, that includes interest as well as any additional fees. APRs are a legal requirement when advertising financial deals like credit cards and mortgages. Appraisal An old-fashioned word meaning an estimate of a property’s current value according to an estate agent or surveyor. Arrangement fee A fee charged by some lenders to cover the administration of arranging a mortgage. They often apply to deals with special rates, such as fixed rates or trackers. 01279 295524 | info@townandcountryhertsandessex.co.uk | www.townandcountryhertsandessex.co.uk
The amount of money that is overdue on your mortgage. If left unpaid it may result in the lender repossessing the property. Asking Price The price a seller is hoping to achieve for their home. Assignment The transfer of a right, title or claim to a property from one party to another. Auction Method of sale whereby a property is sold to the highest bidder. If the reserve price (the minimum the owner is willing to sell the property for) is not reached, then it remains unsold. 01279 295524 | info@townandcountryhertsande sex.co.uk | s www.townandcountryhertsandessex.co.uk
Interest rate set by the Bank of England every month (also known as base rate or simply interest rate). If the rate you pay on your mortgage is variable, it may be affected if the bank rate changes. Bridging loan A high-interest temporary loan that offers short-term access to money, so you can buy a property before selling your existing home, for example. Buildings insurance An insurance policy that covers any structural damage to your property from events such as a fire or flooding. If you need a mortgage, building insurance will normally be a condition of the loan. 01279 295524 | info@townandcountryhertsande sex.co.uk | s www.townandcountryhertsandessex.co.uk
Formerly known as a structural survey, a Building Survey is a detailed report on the construction of a property. It’s the most comprehensive survey you can buy and is suitable for listed buildings, older or unusual homes or ones you intend to completely renovate. Buyer Straightforward. The person who is buying a property (also known as the purchaser). Buy-to-let mortgage A mortgage designed specifically for buying a property that will be rented out, usually for investment purposes. 01279 295524 | info@townandcountryhertsande sex.co.uk | s www.townandcountryhertsandessex.co.uk
The highest interest rate or ‘cap’ you will pay on your mortgage for an agreed period – usually the first few years of the loan. Capital The amount of money put into either buying a property or paid as a deposit. 01279 295524 | info@townandcountryhertsande sex.co.uk | s www.townandcountryhertsandessex.co.uk
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