Menu

A

Agreement in Principle

This is when your application for your mortgage has been approved by your lender, subject to further checks. These are likely to be checks on your income and the value of the property.

Arrangement Fee

A fee your lender will charge you for arranging your mortgage. It can be paid on completion or included in your mortgage loan.

B

Base/Bank Rate

A Mortgage rates are determined by this. It is the interest rate at which the Bank of England will lend money to other banks.

Bridging Loan

If you’re buying a new property and the sale of your old property has not yet gone through, you may need a loan to bridge the gap.

C

Completion

The final stage of the sale. At this time all the monies are passed over and the buyer has legal right to the property.

Contract

A legal agreement between two parties that has two parts. You, the buyer sign one part and we, the seller sign the other.

Conveyancing

The legal transfer of a property from one owner to another via your legal representative/solicitor.

Covenant

Usually in your deeds, this is a legal restriction or condition affecting the property, which you must comply with. For example, pledging to maintain a fence.

D

Deeds

The legal documents relating to the property. They are usually held on your behalf by your mortgage provider.

Deposit

Paid by the buyer on exchange of contracts and usually a percentage payment of the agreed purchase price.

E

Energy Performance Certificate

In England and Wales, if you are selling a property you are required to provide a valid Energy Performance Certificate (EPC). It tells the prospective buyers how energy efficient the property is.

Exchanging

This is where you, the buyer and us, the seller exchange contracts. After the exchange, the sale is legally binding.

F

Freehold/Leasehold

If your home is freehold, then the parcel of land on which your house sits is yours. If it is leasehold, then your ‘ownership’ of the land is set for a period of time, usually 999 years. After this time the land returns to the freeholder.

G

Guarantor

A person who guarantees that a loan will be paid, even if the buyer defaults on the repayments

H

Help to Buy

With the Help to Buy scheme the government give you a 20% interest-free loan if you find just a 5% deposit. It adds up to just a 75% mortgage and reduced monthly payments. Great for first time buyers.

Home Builders Federation

A trade association representing private sector homebuilders in England and Wales. They will ask you to complete a Customer Satisfaction Survey shortly after moving in to determine how happy you are with the quality of your Morris home and the level of service you have received.

I

Independent Financial Advisors

Known as IFAs, these professionals offer independent financial advice on all financial matters. They have knowledge of the whole market and can recommend the most suitable financial products, such as mortgages.

J

Jargon Buster

Home moving jargon and what it all means to you and me.

L

Land Registry and Fees

The Land Registry is the government body that records who owns land and property in the UK. You pay them a fee, through your solicitor, to register your ownership of your new property.

Local Searches

These are carried out by your solicitor and reveal any changes that may effect your new home or the surrounding area, including any planning decisions and applications.

M

Management Company

A company who is appointed to take responsibility for the maintenance and management of all communal areas and shared services, like roads, streetlights, open spaces.

Mortgage

Most people take out a mortgage to buy a house. An Independent Mortgage Adviser can explain all the types of mortgages available to you. When you take out a mortgage your property is used as security.

Mortgage Valuation

When you apply for a mortgage the lender will normally insist on a survey before agreeing on a loan. They will asses the value and condition of the property.

N

NHBC

The National House Building Council’s primary purpose is to raise the construction standards of new homes in the UK. They ‘sign off’ of every single one of our homes and then provide you with a 10-year Buildmark warranty.

Notice

The period immediately after the building work on your new home has finished in which legal completion must take place. We will let your Solicitors know when notice is served.

P

Part Exchange

With Part Exchange, you buy our home and we buy yours. You’ll get the full market value, a guaranteed buyer and none of the hassle of a chain, or the stress of a sale falling through.

S

Sold Subject to Contract

When both the seller and the buyer have agreed a sale but the legal paperwork isn’t complete.

Stamp Duty

This is a government tax on the sale of a residential property. You will pay this at completion. The amount varies dependent on the purchase price and increases in bands.

Standard Variable Rate (SVR)

The standard interest rate set by the lender that in most instances tracks the Bank of England base rate.

T

Title Deeds

The legal documents that set out the rights and liabilities that attach to the property and state who are the legal owners. You sign this and it is then sent to the Land Registry for registration

W

Will

To decide on how your estate will be managed and distributed after your death, it’s advisable to make a will. Especially when you’re new home will form part of your estate. This is a legal document that must be complied with.