Sometimes we use slightly perplexing words in the property world, so if you're not sure what they mean, check out our jargon-buster.
The amount you owe excluding costs and interest outstanding.
With this sort of mortgage, the interest rate you pay goes up and down in line with the standard variable rate. However, you will not pay more than the capped rate for the capped-rate term. So if the standard variable rate is higher than the capped rate, you pay the capped rate. If the standard variable rate falls below the capped rate, you pay the standard variable.
An incentive given by some mortgage lenders when a sum is paid to the purchaser upon completion of the mortgage.
When selling a property, the situation often occurs when a buyer is reliant on the sale of their own home in order to purchase a new property.
CML (Council of Mortgage Lenders)
A trade association for UK mortgage lenders.
A form of freehold which combines the freehold ownership of a unit in a development with membership of a commonhold association. The association (and consequently the unit holders) will own and be responsible for the management and upkeep of the common parts of the development.
This is the final stage of the home-buying process when the property is legally transferred to you.
Conditions of Sale
These details determine the rights and duties of the buyer and seller. These could be imposed by the Law Society or specifically devised by your solicitors.
Cover for all your personal belongings.
An agreement which is legally binding between the seller of a property and a buyer. This binds both parties to complete the transaction at an agreed time.
When two parties have made an offer on the same property, two contracts can be sent out (although this is not common). The vendor will sell to whoever exchanges contracts first.
Refer to 'Conveyancing'
Usually carried out on your behalf by a solicitor or licensed conveyancer. It establishes the legal boundaries of the property, any local planning applications or developments that may affect the future value and checks that the seller is the rightful owner.
The local Council identifies several categories or bands based on property value for the purposes of establishing the amount payable in rates per year.
Some properties have rules and regulations that govern what can and can’t be done and would be lodged with the title deeds or lease.