The Irish Mortgage Corporation website www.irishmortgage.ie provides a Jargon Master for first-time buyers. It's a useful tool for anyone who is baffled by mortgage terms and the jargon used by banks, building societies, auctioneers and solicitors.
APR (Annual Percentage Rate): A way of comparing the cost of a mortgage between lenders. It takes into consideration all upfront and on-going costs.
Conveyancing: The term used for legal work involved in buying and selling property.
Valuation fee: This is a fee for an inspection of the property by the lender to ascertain whether it is a suitable property to lend on. This is carried out by an independent valuer or on behalf of the lender.
Structural survey: This is a full inspection of the property to ensure it is structurally sound. While this survey is optional, it provides the greatest protection for the buyer.
Indemnity bond: An up-front charge paid by the borrower. It is a form of insurance that covers the lender in the event that they make a loss on the sale of a repossessed house.
Signing of contracts: The written legal agreement between the seller and the buyer. The agreement is legally binding. If a buyer terminates the contract after signing, then any deposit already paid will be lost.
Stamp duty: A government tax payable on second-hand properties and on larger new homes. For example, any second-hand property with a purchase price of between £100,000 and £170,000 has a duty of 4 per cent.
Closing date: The date the sale of the house is completed. The purchaser receives the keys of the house and the title is transferred.
Sale by tender: This is a term used when a number of different parties have offered the asking price for the property. They will then submit sealed offers by an agreed date to the auctioneer who accepts the most attractive offer.
Sale by private treaty: This is the term used when a property is bought other than at auction or by tender. The sale is agreed in principle prior to signing of contracts.
Vendor: A person selling a property.
Reserve: The price of a property at auction below which the seller is not willing to sell.
