An explanation of terms commonly associated with buying and selling homes in the UK.

Bridging Loan - a bridging loan is a short term loan taken out to bridge the gap between buying a new home and selling an existing property.  The loan bridges the gap between the sale of the two homes in the housing chain and eases the completion of the purchase.

Chain - the property chain refers to the sequence of sales that must take place before an individual property transaction can take place.  Since most people selling their home will also be buying a new property there can be a chain of buyers and sellers each dependent on each other.  If one buyer or seller drops out the whole chain may collapse.

Completion - completion in property sales refers to the point when contracts have been exchanged and ownership of the property has been legally transferred.

Conveyancing - conveyancing is the legal process that must be completed for the transfer of ownership of the property to take place.  Conveyancing work is usually performed by solicitors.

Endowment Mortgage - an endowment mortgage is a type of mortgage where the property buyer makes monthly payments into a life assurance (endowment) policy.  At the end of the loan period the mortgage is paid off in one lump sum.

Energy Performance Certificate (EPC) - the Energy Performance Certificate is a document showing the current energy rating of a property as well as suggested ways in which the energy rating could be improved.  The EPC is a compulsory part of the Home Information Pack.

Estate Agent - a professional who acts on behalf of a person selling their home to find a buyer for the property.  The estate agency service includes valuing the home, advertising and arranging viewings.

Fixed Fee Estate Agent - fixed fee estate agents a new type of property agent that offer to sell homes for a fixed fee.  An alternative to traditional estate agents that set their fees at a percentage of the value of the home being sold.

Gazumping - a common practice in property sales where the seller of the home accepts one offer to buy the property but later rejects it to accept a higher offer by another buyer.

Home Information Pack (HIP) - recently made compulsory in the UK the Home Information Pack contains a series of documents relating to a property being sold.  The HIP is designed to assist potential home buyers by making important property information available at an early stage.

Land Registry - the land registry is a government office that stores records of land ownership.  Updates to the registry are typically performed by solicitors who register new owners of a home.

Negative Equity - a situation where the mortgage being paid on a property is of a higher amount than the actual value of the home.  This means that the home owner has paid or will pay back more than what the property is worth.

Repayment Mortgage - a type of mortgage where monthly repayments cover both interest and capital so that the amount outstanding will gradually decrease until the mortgage is fully repaid at the end of the agreed term.

Stamp Duty - a government tax charged when a property is sold.  The actual rate of taxation will vary according to the value of the property.

Title Deeds - the title deeds are documents showing the past and present ownership of a property.