how to understand uk property terms
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Want to get Savvy with UK property jargon and their meanings? Read Propsavvy’s glossary below to Understand the various UK Property Terms:TRANSCRIPT
- A Home Buyers Jargon Translator
HOW TO
Understand UK Property Terms
R PropSavvy’s glossary to find out more....
E A D
Want to get Savvy with UK Property Jargon
and their Meanings ?
A D V A N C E
This is another word for a Mortgage or Loan. Not used as much these days, but a few estate agents still use it.
A D V E R S E C R E D I T
A loan or credit that is offered to someone with a poor credit rating, which are usually attained by mortgage arrears or County Court Judgements (CCJ’s)
A S U
This is an Accident, Sickness and Unemployment Insurance. It is a wise type of insurance to take out as it covers your monthly mortgage payments should your finances negatively change, or you are unstable in your job (being made redundant)
B A S I C R A T E
The rate of interest set by the Bank of England. Sometimes lenders call their own rate their basic rate or basis rate.
B U I L D I N G R E P O R T
A detailed survey of a property that is usually provided for older properties that have the likelihood to encounter more problems.
C O M P L E T I O N
Used to describe when all the financial and legal workings are completed and the property is legally yours.
D I S B U R S E M E N T S
Used to describe the legal costs presented by your solicitor for all the legal duties they are carrying out for you.
E A R L Y R E D E M P T I O N
A penalty which is occurs when you pay your mortgage earlier than your contractual agreement.
F R E E H O L D
Land or property which is owned rather than leasehold which is leased for a particular time and then handed back to the freehold owner. For land or property to be classified as freehold it must be immobile and there must not be a fixed time of ownership.
G U A R A N T O R
Someone who guarantee your loan, and will be liable to pay your loan if you are unable to.
H O M E B U Y E R S R E P O R T
A basic version of a builder’s report, which should reveal any faults with the property.
I F A
Independent Financial Advisor who valuates the whole property market to find you the best possible mortgage.
L E A S E H O L D
Gives you the right to occupy the property on the land that the freeholder owns for specific period of time.
N E G A T I V E E Q U I T Y
Where the size of the loan on your home is greater than the property market value.
P A Y R A T E
The amount of interest you pay on a loan, in addition to the mortgage
R E M O R T G A G I N G
Arranging a new mortgage on your home, without moving.
S E L F C E R T I F I C A T I O N
Instead of providing pay slips and bank account details to the lender, you instead declare your income to them.
S T A M P D U T Y
A tax that all UK homebuyers pay, except if the cost of your house is below £125,000 or in a particular area. The amount you pay is usually worked out in percentages, depending on how much your home costs.
T I T L E D E E D S
Legal documents for a property valuation – an inspection carried out by a representative of the lender to establish whether the property is good security for the proposed loan.
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