HomeBuyers Corner is here to fight the corner for the buyer in UK property transactions with helpful, independent and impartial advice, guides and tips.
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Common terms and phrases you'll encounter during your home buying journey, explained in simple English.
A document from a mortgage lender that shows how much they might be willing to lend you. It's not a guarantee, but it shows estate agents you're serious about buying. Also known as a Decision in Principle (DIP) or Mortgage Promise.
A free informal valuation of a property by an estate agent. This isn't the same as a formal valuation or survey, but it gives you a rough idea of what a property is worth.
Insurance that covers the structure of your property. Your mortgage lender will require this to be in place when you exchange contracts. It protects against damage from fire, floods, and other disasters.
A property bought specifically to rent out to tenants. These properties need special mortgages and have different rules from homes you plan to live in yourself.
A sequence of linked house purchases, where each seller is also buying another property. If one purchase falls through, it can affect all the others. A "chain-free" property means the seller isn't buying another property, which can make things simpler.
The final stage of buying a property when money is transferred and you get the keys. This is when you officially become the owner and can move in.
The legal process of transferring property ownership from seller to buyer. A solicitor or licensed conveyancer handles this, checking everything is legal and proper.
The money you put towards the property purchase yourself. Usually at least 5% of the purchase price, but can be more. A bigger deposit often means better mortgage rates.
Costs your solicitor pays on your behalf, such as search fees and land registry fees. These are added to your final legal bill.
A document that shows how energy efficient a property is, rated from A (most efficient) to G (least efficient). It also shows estimated energy costs and suggestions for improvements.
The point when both buyer and seller are legally committed to the sale. You'll need to pay your deposit at this stage, and pulling out after exchange can be very expensive.
A mortgage where the interest rate stays the same for a set period (usually 2-5 years). Your monthly payments won't change during this time, making budgeting easier.
When you own both the property and the land it stands on outright. Most houses are freehold, giving you full control and responsibility for the property.
When a seller accepts a higher offer from another buyer after already accepting yours, but before exchange of contracts. Legal but frustrating for buyers.
A regular payment made by leasehold property owners to the freeholder. Recent reforms mean new leases will have zero ground rent, but existing ones may still charge it.
The government organization that keeps records of property ownership in England and Wales. They update their records when you buy a property.
When you own a property but not the land it stands on, and only for a fixed period. Common for flats. You'll have a lease agreement with the freeholder setting out your rights and responsibilities.
A check your solicitor does with the local council to find out about planning permissions, road schemes, and other things that might affect the property.
A loan secured against your property to help you buy it. You'll repay this monthly, usually over 25-35 years, and the lender can repossess the property if you don't keep up payments.
A tax you pay when buying property over a certain value. The amount depends on the purchase price and whether you're a first-time buyer or buying an additional property.
A detailed inspection of a property's condition. Different levels are available, from basic condition reports to full structural surveys. Helps identify any problems before you buy.
Legal documents that prove ownership of land and property. These are usually electronic records held by the Land Registry nowadays, rather than paper documents.
When you add or remove someone from the property's legal ownership. Common when getting married or divorced, or buying out a co-owner.
An assessment of a property's value, usually done by the mortgage lender. This is to check the property is worth what you're paying and is suitable security for the loan.
A mortgage where the interest rate can go up or down, usually following the Bank of England base rate. Your monthly payments will change when the rate changes.