Technical terms what do they mean?
You'll find most of the legal and technical terms involved in mortgages and buying property here, however please contact our advisers if you need any further explanation or help.

APR (Annual percentage rate)
This is the true cost of the mortgage over the full term, set out as a yearly rate, including all fees, terms and interest. The calculation assumes that you maintain the mortgage for the full term (for example, 25 years). APR is a standard calculation in the mortgage industry and allows mortgages from all lenders to be compared.

Arrangement fee
Nearly all mortgage lenders charge an arrangement fee when taking out a mortgage - however our advisers will be able to talk you through the conditions that apply.

Bank of England base rate
This is the rate set by the Bank of England, that in turn is reflected in the interest rates charged by the mortgage lenders.

Building survey
This is a more comprehensive survey, carried out by a qualified surveyor, to spot any faults and any potential problems in the property that you are buying.

Capital
This is the amount you have borrowed on the mortgage, on which interest will be charged.

Completion
This is where you become the legal owner of the property.

Conveyancing
This is the legal work involved in selling and buying property.

Disbursements
These are the fees that are paid to your solicitor or conveyancer for stamp duty, searches, land registry fee etc.

Early repayment charge
This is a charge some lenders make if a mortgage is paid off early, with a lot of lenders this charged is waived if you transfer your mortgage to another property.

Equity
This is the total value of your property less the amount of the mortgage and any other secured loans you have secured against the property.

Exchange of contracts
This is the point where the property sale becomes legally binding i.e neither party can withdraw from the sale

Guarantor
This is where your income isn't enough to secure a mortgage in your own right, you could ask a guarantor to guarantee the mortgage repayments for you. Your guarantor is fully liable for repaying the mortgage if you default on the loan.

Higher lender charge
Not all lenders charge these, but if you borrow a high percentage e.g. if you borrow more than 75% of the price of the property, you may have to pay this type of fee to protect the lenders extra risk. Normally they can be added to the loan

Home buyer survey
This survey includes a valuation but also contains a report on the condition of the property, highlighting any defects that the surveyor has spotted.

Home information packs
Every home no matter what size, must have a home information pack. It brings together valuable information at the start of the house buying process and includes a sale statement, local searches, evidence of title and an energy performance certificate.

Interest
This is what you are charged for borrowing the money off the lender

Lease
A legal contract which gives the ownership of a leasehold property to the buyer for a fixed period of time.

Mortgage
This is the loan to buy the property. The property acts as security for the loan and so can be repossessed and sold if the mortgage repayments are not made.

Mortgage application fees
These are fees charged by the lender to organise the mortgage for you. These are not usually refunded if you then do not go ahead with the mortgage. Some lenders will only charge such fees for specific mortgage deals.

Mortgage deed
This is the name for the legal agreement which gives the lender a legal right to the property.

Mortgage term
This is the length of time over which the mortgage will be repaid.

Offer of advance
This is the offer of a mortgage from a lender.

Redemption
This is where the mortgage is repaid and where the lender releases their charge on the property.

Stamp duty

Stamp Duty Land Tax was introduced in December 2003 and replaces the old stamp duty on purchases of flats, houses and other land and buildings.  It is a percentage paid on the purchase of a home or non-residential property, graded into bands.

The bands for the tax year 2010/2011 are 0% paid at 0 - £125,000, 1% paid on properties costing between £125,000 and £250,000, 3% between £250,000 and £500,000 and 4% for more than £500,000.

Structural survey
This is a detailed report that's tailored to your needs and can include tests on drains or utilities. It could be very useful if you're buying an older or unusual home or you're thinking about building an extension.

Subject to survey and contract
Wording included in any agreement before the exchange of contracts. This wording allows the seller or buyer to withdraw from the property sale.

Title deeds
These are the legal documents which set out the ownership of a property.

Valuation
This is the most basic type of survey and is the mortgage lender's inspection of the property to assess whether it is suitable for a mortgage.