Property Jargon Part 5
We’re back with the latest instalment of property jargon for you to learn! This week, we are focusing on the letters M through to O.
Maintenance Charge – This is the repair and maintenance costs that the owner of a property is responsible for. This could include things like keeping the garden and communal areas outside the property in good order.
Maisonette – A maisonette is a property type that is split over more than one floor but forms part of a shared property.
Missives – In Scotland only, this is the point where you, through a solicitor, agree in writing to all the points in the contract. The agreement is known as the conclusion of missives. Upon conclusion of missives, you are now bound by the terms of the contract.
Mortgage – A mortgage is a loan that is taken out to buy property or land. The loan is secured against the value of the property until it is paid back, usually after 25 years.
Mortgage Deed – This is the legal documentation that details the mortgage lender’s interest in the property, that also contains all the terms and conditions of the mortgage.
Mortgage Deposit – This is the upfront payment towards part of the property’s purchase price. Typically, it can be around 20% but it can be more or less. This is also known as a Down Payment of Home Loan Deposit.
Mortgage Offer – This is usually a letter from the mortgage lender, offering you a loan and outlining the conditions on which the loan is offered.
Mortgage Payment Protection – Insurance that pays your monthly mortgage if you are unable to work because of redundancy, sickness or because of an accident.
Mortgage Rate – This is the interest rate that is paid to the mortgage lender, depending on what mortgage option has been chosen.
Mortgage Term – This is the period of time that the mortgage loan is expected to be repaid.
Mortgagee – The lender of a mortgage, such as the bank or a building society.
Mortgagor – The house buyer who takes out a mortgage
National House Building Council Certificate (NHBC Certificate) – A kind of build guarantee that is available on some new build properties, that will cover certain defects within a certain time period after the building is completed.
Negative Equity – Negative equity occurs when the value of the property falls below the outstanding mortgage.
Note of Interest – This registers your interest in a property so that you can be notified if any other offers are made on it.
Offer – This is the amount that a buyer offers to pay for a property.
Offer of a Loan – An official document that approves a mortgage that a buyer has requested, detailing the terms and conditions that will apply.
Offers Over – This is the lowest price a seller will accept for their home.
Offset Mortgage – A flexible mortgage that allows credit in one account to be taken into consideration when calculating the interest due on a different mortgage account.
Open House/Open Viewing – This is an organised event that invites several house hunters to visit a property at the same time instead of having separate private viewings.
Open Market Valuation – This is the value that a property will achieve on the open market when there is a willing buyer and willing seller.
Overpayment – This is when you make an unscheduled capital repayment that is over what was initially agreed in your mortgage contract. You can use this as a way to repay your mortgage before the end of the term, which will save you a considerable amount of interest. Be careful though – some mortgages will charge you a fee for overpaying or for overpaying by a certain amount.
How many of these terms did you know? Let us know in the comments, then go and check out Property Jargon Part 4 to learn all the terms from letters J-L!