Jargon, explained
A little less jargon.
A lot more clarity.
The words you will hear when buying your first home, with plain-English starting points.
Agreement in principle (AIP)
An initial indication of what a lender might lend, subject to checks. It is not a guaranteed mortgage offer.
Chain
A series of linked property purchases. Progress on one sale can affect the others.
Completion
The final legal stage when the purchase money is transferred and ownership passes to the buyer.
Conveyancing
The legal work involved in transferring ownership of a property.
Deposit
The part of the price you fund yourself. Ask your legal adviser about the separate amount due at exchange where applicable.
Exchange of contracts
The point when buyer and seller become legally committed in England and Wales.
Freehold and leasehold
Different ways of holding property. Leasehold ownership is for a period under a lease and can involve charges and restrictions. Ask your legal adviser to explain the tenure.
Loan-to-value (LTV)
The mortgage amount as a percentage of the property’s value.
Missives
Formal letters used in the Scottish purchase process. Your solicitor will explain when they create a binding contract.
Survey and valuation
A survey considers the property’s condition for you. A lender’s valuation serves a different purpose and is not a substitute for a survey.
Check the details
Use the linked guidance for the latest rules and advice for your circumstances.