Abbreviation for Annual Percentage Rate. Where an APR is quoted it will be based on the total charge for credit.

A legal transfer of rights or benefits, e.g. in your mortgage, a lease or life assurance policy.

The document prepared by the solicitor for the lender confirming all formalities are satisfactory, prior to completion.

Secured lending on the property.

The formal conclusion of the transaction when the mortgage monies are handed over and legal formalities are dealt with.

Regulates certain secured and unsecured lending up to £25,000.

A legal agreement between purchaser and seller, which binds both to complete the sale and purchase of the property. It is prepared in duplicate and each party signs a copy. When your solicitor exchanges these contracts, the obligation to buy and sell becomes legally binding.

The document that transfers the land ownership usually where the title is changing.

A technique based on probabilities used to assess the degree of risk exposure arising from a potential lending situation.

Amounts that your solicitor has to pay out on your behalf in connection with the transaction, e.g. local authority searches, land registry fees etc.

This is charged if the loan is repaid prior to a set period as laid down in the terms & conditions of the loan.

An investment vehicle combined with life assurance over a specific term. Typically used in conjunction with an interest only mortgage.

The difference between the value of the property and the amount of mortgage outstanding. NB can be positive or negative.

The Scottish term for the right to absolute ownership in land.

The right of absolute ownership in land.

An annual sum paid by the leaseholder to the freeholder as a rental amount for the ground on which the property stands, which the freeholder actually owns.

A single premium policy, paid for by the borrower on completion of the mortgage. It insures the lender for losses in excess of a percentage of the loan-to-value sum. The borrower still remains liable for any amount claimed.

This is the rate at which the interest charged on your mortgage is calculated.

A fee paid to H.M. Land Registry to register changes to the title e.g. new ownership.

A contract with rights and obligations between freeholders and tenant. The freeholder grants the tenant a leasehold interest in the land.

A right to exclusive possession of land for a fixed term of years, where the freehold is owned by a third party.

A search made by the purchasers solicitor at the local authority for the area in which the property is situated. This search would reveal detail such as the maintenance responsibility of roads and footpaths serving the property, road proposals in the immediate vicinity, whether the property is connected by the mains drain, any planning matters affecting the property or which could adversely affect the property in the future.

A loan that is secured on your home.

These are usually contained in a lenders booklet, which together with the terms of your offer (see: standard offer conditions) form the basis of the terms and conditions of your mortgage following completion.

The document which states that the lender is prepared to offer a mortgage for the purchase or remortgage of a property. This document will give details on the exact amount of money that will be lent to you and on what terms.

Also known as Mortgage Repayment Protector. An insurance policy designed to cover mortgage payments during uncertain financial situations caused by illness, accident or involuntary unemployment.

An independent valuer with whom a lending institute is prepared to arrange inspections of property to determine the adequacy of security for loans.

Mortgaging a property you already own, usually replacing an existing mortgage. You can remortgage to obtain lower monthly payments or if you have sufficient equity in your property to raise money for a number of purposes.

An amount kept back from the mortgage by the lender until certain works or other requirements to the property are complete.

Charge made for discharging the mortgage.

The lawyer who represents the parties in a transaction who takes care of all the legalities.

These are the conditions specific to your mortgage and are contained in your mortgage offer.

This is a tax payable on purchases above a level set by the government. The amount depends on the purchase price of the property. Stamp duty may also be payable upon a remortgage where there is a transfer of ownership.

These are printed conditions, which together with any special conditions, the mortgage offer and the mortgage conditions, form the terms of the mortgage.

Also known as Remittance Fee. This is charged for sending sums of money electronically.

The right to ownership of land.

The documents which prove the title. These may be in the form of conveyances or may be an extract of the records held at H.M. Land Registry.

The document that transfers the land where the title is registered.

The process of adding or removing a party from a mortgage.

A legal promise to complete a task.

This is carried out on behalf of the lender and is purely to find out the suitability of the property for lending purposes. A mortgage valuation is prepared on behalf of the lender and may not be relied upon by you for any purpose. There are other valuation reports that are available to you, these consist of a home buyers report and a full structural survey. A full structural survey is a thorough and complete inspection of the property. A Home Buyers report is a halfway house between the basic valuation and a full structural search, completed on your behalf. If you wish for either of these valuations to be carried out, the prices will vary.