Agreement in Principle (AIP/DIP)
A lender's provisional indication of what it might lend, based on limited checks; it is not a mortgage offer.
Plain English
The words between you and the keys.
Search the language used by agents, lenders, surveyors and conveyancers.
AML checks
Identity and source-of-funds checks used by regulated firms to prevent money laundering.
Amortisation
The gradual repayment of mortgage capital through scheduled payments over the term.
APRC
Annual Percentage Rate of Charge: a standardised illustration of mortgage interest and certain fees over time.
Base rate
The Bank of England rate that influences borrowing costs, savings rates and many tracker mortgages.
Best and final offers
A process asking competing buyers to submit their strongest final bid by a deadline.
Building Survey (Level 3)
The most detailed RICS home survey, generally suited to older, altered or unusual buildings.
Buildings insurance
Insurance covering the structure and permanent fixtures against specified damage.
CCJ
A County Court Judgment recording that a court has ordered repayment of a debt.
Chain
A linked group of property purchases where each transaction depends on another completing.
Chain-free
A buyer who does not need to sell, or a property whose seller is not making a linked purchase.
Completion
The legal and financial transfer of ownership, after which the buyer can collect the keys.
Completion statement
The conveyancer's final account showing money received, costs paid and the completion balance.
Conveyancer
A solicitor or licensed conveyancer who carries out the legal work of transferring property.
Conveyancing
The legal and administrative process of transferring ownership from seller to buyer.
Council tax band
A valuation band used by the local council to determine a home's council tax charge.
Covenant
A promise or restriction attached to land that may control how it can be used.
Credit file
A record held by a credit-reference agency of accounts, searches, addresses and repayment history.
Deposit
Buyer cash contributed to a purchase; the exchange deposit and total mortgage deposit are related but not always identical.
Disbursements
Third-party costs a conveyancer pays for the client, such as searches and Land Registry fees.
Down-valuation
A lender valuation below the agreed purchase price, which can reduce the available mortgage.
Early Repayment Charge (ERC)
A fee that may apply for repaying or moving a mortgage during a restricted period.
Easement
A legal right benefiting one property over another, such as a right of way.
EPC
An Energy Performance Certificate rating a property's energy efficiency from A to G.
Equity
The part of a property's value left after subtracting borrowing secured against it.
Exchange deposit
Money transferred before exchange and at risk if the buyer later defaults under the contract.
Exchange of contracts
The point when signed contracts are exchanged and the sale becomes legally binding.
First Homes
An England scheme offering qualifying first-time buyers eligible homes at a lasting market-value discount.
Fixtures and fittings (TA10)
The standard form recording which items the seller will leave, remove or sell separately.
Freehold
Ownership of a building and the land it stands on without a lease expiry.
Freeholder
The person or organisation owning the freehold title.
Gazumping
A seller accepting another offer, usually a higher one, after previously accepting yours but before exchange.
Gazundering
A buyer reducing an offer late in the process before exchange.
Gifted deposit
Deposit money given without expectation of repayment, usually requiring a letter and source checks.
Ground rent
Rent a leaseholder may owe to the freeholder under the lease.
Guide price
An agent's indication of expected price, not an independent valuation or binding figure.
Hard search
A credit search visible to other lenders and commonly used for a full application.
HM Land Registry
The public body that records registered ownership and property rights in England and Wales.
HomeBuyer Report (Level 2)
A mid-level RICS survey commonly used for conventional homes in reasonable condition.
Income multiple
A rough ratio comparing mortgage borrowing with annual gross income.
Indemnity insurance
A policy covering a defined legal property risk rather than correcting the underlying problem.
Japanese knotweed
An invasive plant that can affect property condition, lending and treatment obligations.
Leasehold
A time-limited right to occupy property under a lease, often with charges and restrictions.
Lender panel
The conveyancers a mortgage lender permits to act for it.
Lifetime ISA (LISA)
A tax-advantaged account with a government bonus and detailed first-home withdrawal conditions.
Local authority search
A search revealing council-held matters such as planning, building control and road schemes.
LPE1
A standard leasehold property enquiries form completed by a landlord or managing agent.
LTV
Loan-to-value: mortgage borrowing as a percentage of property value.
Memorandum of sale
An agent's document confirming the agreed sale and parties' professional details; it is not binding.
Mortgage offer
The lender's formal written terms for financing a particular property.
Mortgage valuation
A valuation commissioned for the lender's security, not a detailed condition survey for the buyer.
Negative equity
A position where secured borrowing exceeds the property's current value.
Product fee
A charge for a particular mortgage deal, sometimes payable upfront or added to the loan.
Property Information Form (TA6)
The seller's standard form answering questions about boundaries, disputes, works and other matters.
Rebuild cost
The estimated cost of reconstructing a home, which can differ considerably from market value.
Remortgage
Replacing a mortgage deal, either with the same lender or another lender.
Report on title
The conveyancer's explanation of the title, contract, searches, enquiries and legal risks.
RICS
The Royal Institution of Chartered Surveyors, a professional body setting surveying standards.
SA302
An HMRC tax calculation commonly used as evidence of self-employed income.
SDLT
Stamp Duty Land Tax charged on qualifying land and property transactions in England and Northern Ireland.
SDLT return
The transaction return normally submitted to HMRC by the buyer's conveyancer after completion.
Searches
Reports ordered during conveyancing to uncover legal, environmental and infrastructure information.
Service charge
A leaseholder's contribution to shared maintenance, management, insurance or services.
Share of freehold
A leasehold owner also holding a share in the company or group that owns the freehold.
Shared ownership
A scheme where the buyer owns a share and pays rent to a provider on the remainder.
Sinking fund
Money collected over time for major future works to a shared building.
Snagging
Identifying defects or unfinished work, especially in a newly built home.
Soft search
A credit check that generally is not visible to other lenders making decisions.
Sold price
The price recorded when a transaction completes, rather than its earlier asking price.
SSTC
Sold Subject to Contract: an offer has been accepted but the sale is not yet legally binding.
Staircasing
Buying further shares in a shared ownership home.
Stress test
A lender check of whether repayments remain affordable under less favourable assumptions.
Subsidence
Downward movement of the ground supporting a building, potentially causing structural damage.
SVR
A lender's Standard Variable Rate, which it can change and which often follows an introductory deal.
Title deeds
Documents and registered information evidencing ownership and rights affecting property.
Tracker mortgage
A variable mortgage whose rate moves in line with a stated reference rate plus a margin.
Under offer
Marketing language indicating the seller has accepted an offer subject to contract.
Underwriting
A lender's detailed assessment of the applicants, property and proposed loan.
Vendor
Another word for the property seller.