A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | R | S | T | U | V | W

Acceptance: the document that you will need to sign and return to a lender if you wish to accept the lender’s mortgage offer.

Additional Security Fee: this is a one-off fee charged by the lender. It is usually payable, up-front, on mortgages of more than 75% of the house value in order to protect the lender from repayment defaults. It is also known as MIG (Mortgage Indemnity Guarantee), Indemnity Premium or Indemnity Guarantee Premium.

Agricultural Covenant: this is a planning condition that permits the erection of a residential dwelling providing it is occupied by a person employed or associated with working on the land. Properties subjected to such a covenant are effectively “blighted” by this stipulation and values are relatively low because they cannot be sold to anyone who fails to meet the condition imposed, unless the planning authorities agree to lift the covenant.

Applicant: the term by which a potential purchaser is often referred to by estate agents / auctioneers.

Annual Percentage Rate (APR): this is commonly known by its acronym, APR. The APR gives the true annual cost of a finance agreement, expressed as a percentage, through the calculation of interest, insurance provided and any other fees charged. It provides an excellent basis for comparison across loans.

Arrangement Fees: these fees cover the arrangement of loans on certain products. They usually apply to loans for which a special rate of interest applies; for example fixed or capped rates.

Assignment: this is the transfer of ownership of a lease or insurance policy.

Auction: a means of selling a property whereby it is listed at an auction and if the property does not reach the reserve price then it is not sold. If it does then the auctioneer’s hammer falls that represents an exchange of contracts and the successful bidder is legally obliged to pay a 10% deposit and sign a memorandum of sale before leaving the auction. Usually completion takes places 28 days later and the buyer cannot re-negotiate any of the stipulated terms and buys the property “as seen”. Structural surveys and searches would have to be made in advance by a bidder.