Jargon Buster

Capital

The amount you owe excluding costs and interest outstanding.

Capped Rate Mortgage

With this sort of mortgage, the interest rate you pay goes up and down in line with the standard variable rate. However, you will not pay more than the capped rate for the capped rate term. So if the standard variable rate is higher than the capped rate, you pay the capped rate. If the standard variable rate falls below the capped rate, you pay the standard variable.

Cashback

An incentive given by some mortgage lenders when a sum is paid to the purchaser upon completion of the mortgage.

Chain

When selling a property, the situation often occurs when a buyer is reliant on the sale of their own home in order to purchase a new property.

CML (Council of Mortgage Lenders)

A trade association for UK mortgage lenders.

Commonhold

A form of freehold which combines the freehold ownership of a unit in a development with membership of a commonhold association. The association (and consequently the unit holders) will own and be responsible for the management and upkeep of the common parts of the development.

Completion

This is the final stage of the home buying process when the property is legally transferred to you.

Conditions of Sale

These details determine the right and duties of the buyer and seller. These could be imposed by the Law Society or specifically devised by your solicitors.

Contents Insurance

Cover for all your personal belongings.

Contract

An agreement which is legally binding between the seller of a property and a buyer. This binds both parties to complete the transaction at an agreed time.

Contract Race

When two parties have made an offer on the same property two contracts can (although not commonly) be sent out. The vendor will sell to whoever exchanges contracts first.

Conveyancer

Usually carried out on your behalf by a solicitor or licensed conveyancer. It establishes the legal boundaries of the property, any local planning applications or developments that may affect the future value and checks that the seller is the rightful owner.

Conveyancing

Usually carried out on your behalf by a solicitor or licensed conveyancer. It establishes the legal boundaries of the property, any local planning applications or developments that may affect the future value and checks that the seller is the rightful owner.

Council Tax

The local Council identifies several categories or bands based on property value for the purposes of establishing the amount payable in rates per year.

Covenants

Some properties have rules and regulations that govern what can and can’t be done and would be lodged with the title deeds or lease.