Terminology

When it comes to signing on the dotted line, there are many processes and things to sort out beforehand. Each step, even if its a small one, is a step in the right direction, however, it also comes with jargon that isn't thrown around in day to day life. 

There are various terms and definitions that you will encounter when buying your first home, it’s a good idea to make yourself familiar with terms to avoid feeling overwhelmed or confused.

Take the time to research common terminology. Speak to friends and family who have been in your position before about things you are unsure on, they might be able to clarify a few terms for you. Or, jump on Google and start learning!

Here are just a few of the most common phrases/terms:

• Mortgage in principle – a document from a lender confirming that you can borrow your desired amount. This can be used to prove to the seller you can afford the property.
• A fixed rate mortgage – this charges a set interest rate over a period of time. This means you will know exactly how much you are paying each month.
• Freehold - If you purchase a new home which is freehold, you own the building and the land that it stands on outright. You will not have to pay annual ground rent unlike a leasehold property.
• Leasehold – this is the ownership of a property but not the land it is built on. This normally requires payment of ground rent to the landlord.
• Deeds - A formal written document detailing exactly who owns a property and enables transfer of the ownership of the property from the seller to the buyer.
• Conveyancing - this includes proving that the property is really owned by its seller, making sure that all the loans attached to the property are discharged, establishing its legal boundaries and searching local planning information for upcoming developments which might affect the property's value.