Jargon Explained

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Hire Purchase
This term is used to describe purchase brought on credit like cars, electrical items, furniture etc. Usually it is items brought on HP. A credit check will check to see if you have ever had or still have any HP's and the payment history of them.

Homebuyers Report
This may also be called a homebuyers survey. The report is a surveyors assessment of the state of repair and condition of the property. It covers all areas of the property that are readily accessible. The report summarises the findings and make recommendations for investigation or proposals for work required.

Household Insurance
A term used to describe both buildings and contents insurance. Buildings insurance is likely to be a requirement of any mortgage lender.

Independent
Refinance UK send your applications on to an Independent Financial Advisor or an Independent Mortgage Broker. They are not attached to a specific mortgage or loan provider so they aim to get you a highly competitive deal.

Interest-only Mortgage
This works the same way an Endowment Mortgage works.

Joint Application
If you and your partner are applying for a mortgage together it is called a Joint Application. Most lenders will lend you either 2 and a half times your combined salary or 2 times for the 1st Applicant and 1 time for the 2nd Applicant.

Leasehold
This means you own a property rather than rent the property for a set number of years. When the lease expires, the property returns to the freeholder. Shops and business premises are commonly sold on a leasehold.

Local Authority Search
When you buy a property the conveyancing process is carried out by your conveyancer, usually a solicitor. This search is based on your local council's services may affect the property. Such as proposed road improvements, and details of any planning permission given for the property or nearby property.

LTV
This term is used to describe the Loan to Value. The size of the mortgage you require compared to the value of the property. A £80,000 mortgage on a house valued at £92,000 would mean a LTV of 85%. You would then require a 15% deposit.