The Home Buyers Dictionary: The Key Terms Every Buyer Should Know
Feeling lost with terms like freehold, gazumping or APR? You’re not alone. Here is a quick, jargon-busting guide to the most common terms you’ll come across:
A recent Zoopla study shows many buyers especially first-timers, feel overwhelmed by property jargon. That’s why we’ve created a simple, easy-to-read dictionary to help you feel confident, informed and fully in control of your buying journey.
APR (Annual Percentage Rate) - The true yearly cost of your mortgage, including fees—great for comparing deals.
Base Rate - The Bank of England’s interest rate, which influences mortgage costs.
Bridging Loan - Short-term funding to help you buy before you sell, fast, but usually higher interest.
Buying Schemes - Government or developer-backed support like Help to Buy, Shared Ownership, or Right to Buy.
Closing Date - A deadline set for submitting offers when a property has lots of interest.
Completion - The final legal stage, money transfers, keys handed over, you move in!
Conveyancing - The legal process of transferring ownership from seller to buyer.
Covenant - A rule or restriction tied to the property—for example, what you can build or how you can use it.
Deeds - The documents proving legal ownership, held by the Land Registry.
Disbursements - The costs your solicitor pays on your behalf (e.g., searches, Land Registry fees).
Early Repayment Charge (ERC) - A fee for paying off your mortgage early during a fixed or discount period.
Energy Performance Certificate (EPC) - Shows how energy-efficient the property is from A (best) to G (poorest).
Equity - The portion of the property you truly own—value minus outstanding mortgage.
Exchange of Contracts - When the sale becomes legally binding for both buyer and seller.
Fixed Interest Rate - A mortgage rate that stays the same for a set period—great for certainty.
Freehold - You own the property and the land underneath it outright.
Gazumping - Another buyer swoops in with a higher offer before contracts are exchanged.
Gazundering - When a buyer lowers their offer just before exchange.
Leasehold - You own the property for a set number of years—but not the land.
Mortgage - The loan used to buy your home, secured against the property.
Mortgage Broker - A specialist who finds the best mortgage for your needs.
Under Offer - A sale is agreed but not legally binding until contracts are exchanged.
Stamp Duty - The Government tax paid when buying property over certain price thresholds.
Surveying - An assessment of the property’s condition and value.
Tender - A sealed-bid method of selling—buyers submit their best offer by a set deadline.
If there’s a term we’ve missed or you’re unsure about anything, we’re always here to help.
Ready to buy with confidence? Get in touch with our team today for expert guidance and a clear path to your next home.
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