February 2nd marks the start of New Homes Week in the UK. Launched by the Home Builders Federation in 2005, the campaign aims to highlight the benefits of owning a new home. This year’s theme, The Power to Move, is all about giving you the information and confidence you need to take that next step towards buying a new home.
The world of homebuying can seem overly complicated, particularly if you’ve never bought a home before. All of a sudden you’re faced with a whole new world of unfamiliar terms and phrases. To make things easier, we’ve created this guide to help you unravel the meaning behind the financial and housebuying jargon that you may come across. We hope it helps.
AiP / MiP / DiP (Agreement in Principle / Mortgage in Principle / Decision in Principle)
A document from a potential lender indicating how much they might be willing to lend you, based on a preliminary assessment of your finances. It helps you refine your property search by budget and demonstrates to sellers that you’re a serious buyer. Agreements in principle are typically valid for 30–90 days.
APR (Annual Percentage Rate)
If you have a credit card, you’ll be familiar with this term. It refers to the total cost of borrowing for a year and includes the interest charged on your mortgage, plus any associated fees such as arrangement fees.
Completion
The day you officially move in. Before this, solicitors carry out final checks and request the mortgage funds from your lender. On completion day, your solicitor transfers the funds to the seller’s solicitor. Once this has happened, they’ll confirm completion and the developer will be in touch to arrange key handover— meaning the property is officially yours.
Conveyancing
The legal process of transferring ownership from seller to buyer. It includes property searches, title checks, drafting contracts and arranging surveys. The process typically takes around 6 – 8 weeks, but it can be longer if you’re in a chain or waiting for information. You’ll need to instruct a conveyancing solicitor — you can ask for recommendations or visit the Law Society or HomeOwners Alliance to find a regulated solicitor.
Deposit
The amount of money you put down upfront when buying a home. Most mortgage lenders require a deposit before agreeing to a mortgage and, in many cases, a larger deposit can help you access more competitive interest rates — though this may vary by lender.
An independent financial advisor can provide details of all the options open to you and Peter Ward Homes have a panel of advisors who provide advice free of charge.
Exchange of Contracts
One of the final stages of the conveyancing process. Exchange only takes place once all searches are complete, your mortgage offer is in writing, and all enquiries have been satisfied. Contracts are then signed by both parties, making the sale legally binding.
Fixed Rate
When comparing mortgages, you’ll see fixed, variable and tracker options. A fixed-rate mortgage offers a set interest rate for a defined period — usually between two and ten years.
LTV (Loan to Value)
How much you’re borrowing compared to the value of the property, expressed as a percentage. For example: If you’re buying a £300,000 home with a 10% deposit, you’ll borrow £270,000 — an LTV of 90%. Lower LTVs (typically 80% or below) are often considered lower risk by lenders and may give access to more favourable mortgage products, though this can vary. Peter Ward Homes have a panel of advisors who provide advice free of charge.
Mortgage
A long-term loan used to buy a home, repaid monthly with interest. It is secured against your property, which means it could be at risk if repayments aren’t maintained. The average mortgage lasts for 25 years, but lenders offer a range of terms. They’ll explain the options so you can choose what works best for your situation.
MoS (Memorandum of Sale)
Also known as a NoS (Notification of Sale). A document usually issued by the estate agent (or the solicitor in a private sale) that sets out the key details of the proposed sale — including both parties’ information, solicitor details, the agreed price, tenure (freehold, leasehold etc.). Once issued, the conveyancing process can begin.
New Build
A brand-new home that’s never been lived in. New builds are constructed to the latest building standards, often with high EPC ratings, and typically come with a 10-year structural warranty. With no property chain, the moving process can be more straightforward.
Searches
Property or conveyancing searches are a standard element of the homebuying process. They cover planning and building regulations, conservation areas, proposals for new roads, water and drainage information and environmental reports. These searches help ensure you have accurate information before committing to the purchase.
SSTC (Sold Subject to Contract)
Also referred to as Sale Agreed or Under Offer. This means the seller has accepted an offer and conveyancing has begun. It’s important to note that SSTC is not legally binding; either party can withdraw until contracts are exchanged.
Stamp Duty
A government tax payable on property purchases over £125,000 (or £300,000 for first-time buyers). The amount varies depending on the purchase price, banding of the property and other factors. This applies to England and Northern Ireland; Scotland and Wales have their own property tax systems. You can check the current stamp duty rates online using the Government Stamp Duty calculator.
We hope our guide has helped you decode some of the most common homebuying and financial terminology.
If you’re feeling The Power to Move, why not browse our current developments and arrange a viewing? Who knows — 2026 could be the year you move into your dream new build home with Peter Ward Homes!