Jargon buster

Home buying words, explained

30 words you'll hear from agents, lenders and solicitors, each in a sentence or two.

Agreement in principle: Also called: AIP, decision in principle, DIP, mortgage in principle; A quick check from a lender showing roughly how much they might lend you. It isn't a promise, but agents like to see one.
Chain: A line of buyers and sellers who all depend on each other. First-time buyers aren't selling anything, so you're chain free.
Closing date: Scotland. When lots of people are interested, the agent sets a date and everyone sends one sealed offer.
Completion: The day the money moves, the home becomes yours and you get the keys.
Conveyancing: Also called: solicitor, conveyancer; The legal work of transferring a home from the seller to you. A solicitor or conveyancer does it.
Council tax band: Every home in England, Scotland and Wales sits in a band from A upwards, based on its value. Higher band, higher bill.
Deposit: The part of the price you pay from your own savings. Most lenders want at least 5%.
Domestic rates: Also called: rates; Northern Ireland's version of council tax, based on what your home is worth.
Energy rating: Also called: EPC, energy performance certificate; A rating from A (cheap to heat) to G (expensive). Every home for sale must have one.
Exchange of contracts: Also called: exchange, missives; When the sale becomes legally binding and you pay your deposit. In Scotland it's called concluding missives.
Fixed rate: Your interest rate, and so your payment, stays the same for a set time, often 2 or 5 years.
Freehold: You own the home and the land it's on, with no lease running down.
Gazumping: When a seller accepts your offer, then takes a higher one before contracts are exchanged. Annoying, but legal in England, Wales and Northern Ireland.
Gifted deposit: Also called: gift, bank of mum and dad, family help; Money from family towards your deposit that doesn't need paying back. Lenders usually want a signed letter from the giver saying so.
Ground rent: A yearly fee some leaseholders pay to the freeholder. Many newer leases have none.
Home Report: Scotland. A survey, energy rating and questionnaire the seller pays for and shares with buyers.
Joint mortgage: Also called: buying with a friend, buying together, co-buying; A mortgage shared by two or more people, like a partner, friend or relative. You're each responsible for the whole loan, so agree in writing who owns what.
Leasehold: You own the home for a set number of years but not the building or land. Leases under 100 years can be harder to get a mortgage on.
Lifetime ISA: Also called: LISA; A savings account for 18 to 39 year olds. The government adds 25%, up to £1,000 a year, for a first home up to £450,000.
Loan to value: Also called: LTV; Your loan as a share of the price. A £180,000 loan on a £200,000 home is 90% LTV. Lower usually means a better rate.
Mortgage broker: Also called: broker; Someone who compares lenders and helps you apply. Many are free for first-time buyers. Ask how they're paid.
Mortgage term: Also called: term; How long you take to pay the loan back, often 25 to 35 years. Longer means lower payments but more interest.
Repayment mortgage: Each payment covers some interest and some of the loan, so you owe nothing at the end of the term.
Searches: Checks your solicitor runs with the council and others, for things like flood risk and planned roads.
Service charge: Also called: factor fee; What flat owners pay towards shared parts like the roof, lifts and hallways. In Scotland it's often called a factor fee.
Sold STC: Also called: subject to contract, under offer; An offer's been accepted but nothing is legally binding yet. We hide these homes.
Stamp Duty: Also called: SDLT, LBTT, LTT, Land Transaction Tax, Land and Buildings Transaction Tax, property tax; A tax you pay once when you buy. First-time buyers in England and Northern Ireland pay none up to £300,000. Scotland's version (LBTT) starts above £175,000 and Wales's (LTT) above £225,000.
Standard variable rate: Also called: SVR; The rate you move to when a deal ends. It's usually higher, so most people switch to a new deal.
Survey: An inspection of the home's condition. A basic one spots big problems; a fuller one costs more.
Tracker rate: Your rate moves up and down with the Bank of England base rate.