Annual percentage rate

This is a percentage rate of the total cost of a loan (along with all costs, interest charges and arrangement fees included).



Sale of property to the highest bidder, who, on winning the bid is legally bound to buy the home. It is important to have your mortgage approved and 10% of purchase price ready to pay completion of bidding




Bridging loan

This is a temporary loan used to provide finance when you are purchasing a house and the sale of your own home is yet to be complete.



This is an independent agent who will advise you on the best mortgages available and help you put one in place if you so wish. Mortgage brokers, such as Mortgage Solutions, offer these services free of charge to the customer.


Building survey

This is a survey carried out on a property outlining in great detail the physical condition of the property. It is highly recommended that anyone thinking of purchasing a home should get a building survey carried out as defects which would not normally be detected by a purchaser will be detected by the building survey.




Capital Gains Tax

Capital Gains Tax in general is tax placed on any increase on the value of an asset from the time you bought until you sold it. A gain on the disposal of a principal private residence including grounds of up to one acre is exempt, provided the house had been occupied by the individual as his/her only or main residence during the individual's period of ownership.



This is were a potential purchaser of property is relying on the sale of their own property before they can buy a new one.



This is when all legal transactions have taken place and the ownership of the property is legally passed on to the buyer.


Contents insurance

This is insurance that covers the loss of or damage to your possessions within the property.



A legal agreement between a seller and buyer of a property.



The legal work to be carried out in either the sale or the purchase of a property. This is necessary to ensure that there are no legal issues in relation to the ownership of the property at a later date.




Deeds of Title

Documents showing ownership of a property.



A sum of money (usually 10% of the property value) paid by the buyer on exchange of contracts.



Expenses paid by the solicitor on behalf of the purchaser (admin/post/courier).




Early redemption fee

This is a fee associated with the early termination of a mortgage (before the full term is complete).



Equity is the property value less the amount of the mortgage still owed.


Estate Agent

Property agent, such as POWER ESTATE AGENTS, working on behalf of a buyer or seller to buy or sell a property.


Exchange of contracts

When the solicitors for the buyer and seller exchange signed contracts, binding them to the purchase and sale of the property at an agreed price.


European Central Bank

The ECB decide what the base interest rate will be for the European Union. The higher the ECB base rate the higher the interest rate lending institutions wil charge on mortgages.




First-Time Buyer

A person who has not purchased a property before. First-time buyers in general pay a lower rate of stamp duty than other types of purchasers.


Fixed Rate Interest Rate

This an interest rate that will be applied to your mortgage in calculating the amount of interest you pay on your mortgage, which will not vary during the time it is fixed. Normally lending institutions will offer fixed rates up to a five year period.





Someone who agrees to pay the borrower's debt if they should default on repayments.




Home Bond

A guarantee on new property which protects the purchaser against the builder going bankrupt, major building faults, and water and smoke damage on completion of building.




Interest-only mortgage

A type of mortgage whereby only interest is paid throughout the term of the loan. At the end of the term you still has to pay off the original amount borrowed. The advantage is that the monthly mortgage repayments are a lot lower than normal as you are only paying off the interest each month but the disadvantage is that at the end of the loan there is still the original loan amount to pay off.



Building insurance is required by all lending institutions to protect their interest. This covers any structural damage to the property.


Contents Insurance - often taken out with Building insurance to cover any loss or damage to the owners contents.




Land registry fee

This is where ownership of the property is registered to the new buyer by your solicitor and a fee is associated.


Life Assurance

All lending institutions require the mortgage holder to have an insurance policy in place to cover a fixed amount of the loan in the event of death.


Listed building

This is a building that has specific architectural or historic interest, which in general has a lot stricter planning criteria for alterations than non-listed buildings.


Loan Offer

A formal document approving a buyer's mortgage which will outline the terms and conditions that are applied.


Loan to value (LTV)

This is the size of the value of a mortgage in relation to the property's value.





This is a long-term loan advanced by a financial institution to finance the purchase of a property. It is then paid back with interest in monthly repayments over several years.


Mortgage deed

This is a legal document that details the lender's interest in the property. Also contains the terms of the mortgage.


Mortgage Protection

This is an insurance policy that will cover the payments on the loan for a limited period of time in the case of illness or disability.


Mortgage Rate

The interest rate that will be applied to your mortgage in calculating the amount of interest you pay on your mortgage.


Mortgage Term

This is the number of years over which the mortgage must be repaid.




Negative equity

This occurs when the amount borrowed exceed the value of the property.





An amount of money offered from a buyer for a property.




Payment break

This is a mortgage option that allows the borrower to cease payments for an agreed period of time. This can come in handy if you are planning to start a family.


Period Property

Georgian Period Property - used to describe properties constructed in the 18th Century under the reign of kings George I, George II, George III and George IV 1714-1830

Victorian Period Property - used to describe properties constructed under the reign of Queen Victoria 1837-1901

Edwardian Period Property - used to describe properties constructed under the reign of King Edward VII 1901-1910



A monthly amount paid on an insurance policy.



The amount of the loan or mortgage that you wish to borrow.





Increasing the original mortgage by switching to a different financial institution or redefining the terms to draw upon the equity gained in the increase house value.



This occurs when the mortgage lender takes possession of a property when the borrower defaults on payment.


Residential Tenancy Board

A statuary body set up to regulate the residential rental market. Tenants or landlords who have grievances with one and another can contact the Residential Tenancy Board who will then undertake to settle the dispute.




Sale Agreed

Whereby the seller agrees to accept an offer from a bidder and a booking deposit is paid.


Serious Illness Cover

Insurance which can be taken out as part of the mortgage protection which will repay the mortgage in the event of a listed serious illness.


Shared Ownership Scheme (SOS)

The SOS loan provides assistance to those on low incomes who cannot get loan approval for a mortgage from any other financial institution.


Snag List

A check carried out by a surveyor and purchaser to check all defects which need to be fixed before the purchase is complete.


Sole Agent

Where one estate agent is responsible for the sale of a property.



Legal expert who acts on behalf of the buyer or seller in sale or purchase of a property.


Stamp Duty

A government levy on buying a home. Rates vary for first time buyers and or investors/owners occupiers. The level of stamp duty payable rises with the level of value of the property.


Structural Survey

A details report on the structure of a house listing any defects. See “Building Survey”.



The professional qualified to carry out a survey.





The person who is renting and occupying a property from a londlord.



The period of the mortgage.


Title Deeds

Documents showing ownership of a property


Transfer Deeds

Land registry document that transfers legal ownership from seller to buyer.




Valuation Survey

A survey required by a financial institution, on a property to ensure the value of the mortgage is not more than the value of the property.


Value Added Tax (VAT)

VAT is a consumer tax. It is collected by VAT registered traders on their supplies of goods and services. It is currently levied on New Homes but not second hand residential homes.


Variable Base Rate

This is a mortgage interest rate that can change over the term of the loan depending on the rates of the Central Bank, meaning the monthly repayments can go up or down.



The term for the seller of a property.

Why Choose Power?

By choosing Power Estate Agents to market your property for sale, you know that you will get expert advice from an experienced property professional.



Present Your Home

When selling your home, first impressions count. Investing a little bit of time and energy into ensuring your property is presented in the best light can go a long way.



Let & Management

Our objectives at Power Estate Agents is to provide a first class letting service to our landlords and to make letting property a stress free and profitable enterprise.