The amount paid for a property in a transaction in which neither the buyer nor the seller is being forced into the contract. Typically this value will be set by looking at the sale prices of similar properties in the same area.
A term used in Scotland to refer to property where the owner has the right to decide who inherits the property.
A term used in Scotland to refer to the ownership of both a property and the land on which it is built. The closest equivalent in England and Wales is Freehold.
The point at which the borrower can expect the first rate adjustment under a variable rate loan.
A legal right under which the holder (of First Charge) has first call on the property in the event that the borrower defaults on repayments.
A mortgage that is the primary lien or first claim against a property.
A purchaser who is buying a property for the first time. Typically a lender will offer more attractive deals for first time buyers. Also known as First Time Purchaser (FTP).
A mortgage under which the rate of interest has been fixed for a specified period of time.
Under a fixed term mortgage, this is the specified period during which the rate of interest has been fixed.
A flat or apartment that is located above a retail property. Lenders may view such a property as a higher risk category and adjust their mortgage offer accordingly.
A facility written into a mortgage that allows a borrower to access additional funds.
A mortgage that allows the borrower to make over- or under payments, or take a payment holiday.
A mortgage that is taken out in a currency other than sterling. Typically used by people who are paid in foreign currency, this type of mortgage carries a higher risk for the lender (due to foreign currency fluctuations) and the rates may be adjusted accordingly.
A situation whereby the owner owns both the property and the land on which the property is built. See also Feuhold (Scotland)
The stage in a mortgage application at which the prospective borrower has provided credit check and other financial information.
A situation whereby the lender makes available another loan and under which both loans are included within first charge on the property. This is normally used to consolidate debt or pay for improvements to the property.