Every term, explained plainly.

An AIP (also called a DIP — Decision in Principle — or MIP — Mortgage in Principle) is the first formal step in the mortgage process. After reviewing your income, deposit size, and credit history via a soft search, the lender confirms how much they're willing to lend.

It is not a mortgage offer. It's a statement of intent. The lender reserves the right to change or withdraw it when you make a full application, particularly if circumstances change or a property valuation comes back low.

Most estate agents require an AIP before they'll take an offer seriously. Sellers prefer buyers with an AIP because it demonstrates financial preparation and reduces the risk of a sale falling through on finance grounds.

CHAPS is the UK's real-time gross settlement system for high-value payments. Unlike BACS (which takes 3 working days) or Faster Payments (which is instant but capped at £1 million), CHAPS guarantees same-day settlement for any amount.

When buying a property, your solicitor requires cleared funds — meaning the money must be in their client account and confirmed received — before they can authorise completion. A standard bank transfer might process overnight or show as "pending." CHAPS cannot.

CHAPS payments must be initiated before 3pm to guarantee same-day settlement. Your bank will typically charge £15–30 per CHAPS transfer. On completion day, your solicitor uses CHAPS to transfer the entire purchase price to the seller's solicitor in a single transaction.

Conveyancing covers everything that happens legally between your offer being accepted and you being registered as the new owner at HM Land Registry. Your solicitor or licensed conveyancer manages this on your behalf.

The process involves: reviewing the title deeds and contract, ordering and reviewing searches (local authority, environmental, drainage), raising and answering enquiries, reporting to your mortgage lender, exchanging contracts, completing the purchase, paying Stamp Duty, and registering your ownership.

The average conveyancing process takes 12–16 weeks. Common causes of delay include: slow responses to enquiries from the seller's solicitor, local authority searches taking longer than expected, complex title issues, and problems in the chain.

Halifax and a number of other lenders use the term "Decision in Principle." Nationwide calls it a "Decision in Principle." NatWest uses "Agreement in Principle." Barclays uses "Mortgage in Principle." They all mean the same thing — see the AIP entry for the full explanation.

Before exchange, both parties are free to withdraw for any reason with no legal consequences (though you lose survey and solicitor costs). After exchange, withdrawal triggers financial penalties: the buyer loses their deposit; the seller can be sued for breach of contract.

At exchange: both solicitors confirm their client has signed the contract, the buyer's 10% deposit is transferred to the seller's solicitor, and a completion date is agreed. From this moment, the buyer is also legally responsible for the property — which is why buildings insurance must start at exchange, not completion.

Exchange and completion can happen simultaneously (same-day) or with a gap of typically 1–6 weeks. The gap exists to allow both parties to organise removals, give notice on rented properties, and arrange finances.

HMRC defines a first-time buyer as someone who has never owned a freehold or leasehold interest in a dwelling. This includes properties anywhere in the world, not just the UK. If you've inherited a share of a property, owned one abroad, or been a joint owner previously, you may not qualify.

For joint purchases, both buyers must be first-time buyers to benefit from FTB stamp duty relief. If one buyer has previously owned property, neither buyer receives the relief.

The status applies to SDLT (England/N.Ireland), LBTT (Scotland), and LTT (Wales) — each with different thresholds and relief structures.

In England and Wales, an accepted offer is not legally binding. Either party can walk away at any point before exchange of contracts. Gazumping occurs when a new buyer offers more money (or the same money with better terms) after you've already invested in surveys and solicitor costs.

It's most common in rising markets where sellers realise their property is worth more than they originally accepted. The term is believed to derive from Yiddish — specifically the word meaning to swindle or overcharge.

Scotland operates differently — once a formal offer is accepted in Scottish property law, it creates a binding "concluded missives" contract, making gazumping effectively impossible.

HMRC is responsible for collecting Stamp Duty Land Tax (SDLT) in England and Northern Ireland. In Scotland (LBTT) and Wales (LTT), collection is handled by Revenue Scotland and the Welsh Revenue Authority respectively.

In a property purchase, your solicitor files the SDLT return and makes the payment to HMRC within 14 days of completion. If they miss this deadline, penalties and interest begin accruing immediately. The funds are included in the completion statement they send you before completion — you don't need to interact with HMRC directly.

HMRC also administers income tax on rental income (if you become a landlord), Capital Gains Tax when you sell a property that isn't your main home, and Inheritance Tax which can affect property passed through estates.

LBTT replaced UK Stamp Duty Land Tax in Scotland in April 2015, following the Scotland Act 2012 which devolved tax powers. It operates on the same progressive "slice" basis as SDLT — you pay each rate only on the portion of the price within each band.

For first-time buyers in Scotland, there is a relief that increases the zero-rate threshold. For additional dwellings (second homes, buy-to-let), an Additional Dwelling Supplement (ADS) of 6% applies on top of standard rates on the full purchase price.

LBTT is administered by Revenue Scotland (not HMRC), and returns must be filed within 30 days of the transaction (compared to 14 days for SDLT in England).

The LISA allows anyone aged 18–39 to save up to £4,000 per tax year, with the government adding 25% on top — a maximum bonus of £1,000 per year. The account must be open for 12 months before you can use it toward a property purchase.

The property must cost £450,000 or less, and you must be a first-time buyer using a repayment mortgage. Cash LISAs earn interest on top of the bonus. Stocks and Shares LISAs can generate higher returns but carry investment risk.

You can open a LISA at any age between 18 and 39, and continue contributing until you're 50. If you don't use it for a first home, it becomes a retirement pot accessible from age 60.

LTT replaced SDLT in Wales in April 2018, following the Wales Act 2014 which devolved tax powers to the Senedd (Welsh Parliament). Like SDLT and LBTT, it operates on a progressive slice basis.

Wales does not have a separate first-time buyer relief — all buyers pay LTT at the same rates. However, the zero-rate threshold for residential properties applies to all buyers. For additional dwellings, a 4% surcharge applies on top of standard rates on the full purchase price.

LTT is administered by the Welsh Revenue Authority, and returns must be filed within 30 days of completion.

LTV is calculated as: (mortgage amount ÷ property value) × 100. If you're buying a £280,000 property with a £28,000 deposit (10%), your LTV is 90% — meaning you're borrowing 90% of the property's value.

LTV is the single most important factor in determining your mortgage interest rate. Lenders offer tiered rates at key LTV thresholds — typically 95%, 90%, 85%, 80%, 75%, 60%. Dropping from 90% LTV to 85% LTV can reduce your interest rate by 0.3–0.7%, saving thousands over the mortgage term.

If property values fall after purchase and your mortgage becomes larger than the property's value, this is called negative equity — a situation where your LTV exceeds 100%.

Functionally identical to an AIP or DIP. The term varies by lender. See the AIP entry for the full explanation of what this means and how to get one.

Your employer provides a P60 at the end of every tax year (April 5th). It shows your total gross earnings, total income tax deducted, National Insurance contributions, and any student loan repayments for that year.

Mortgage lenders require your most recent P60 to verify your stated income. They may also ask for P60s from previous years to establish income consistency. For self-employed applicants, SA302 forms (self-assessment tax calculations) serve a similar purpose.

If you've changed jobs during the year, you may receive multiple P60s — one from each employer. Keep all of them. HMRC can provide replacement P60s via your personal tax account if you lose them.

RICS sets professional standards, qualifications, and codes of conduct for surveyors, valuers, and property professionals. RICS-accredited surveyors (designated MRICS or FRICS) are regulated and carry professional indemnity insurance — meaning if their survey misses something significant, you have recourse.

RICS defines the three main survey levels used in UK residential property: Level 1 (Condition Report — basic, for new builds), Level 2 (HomeBuyer Report — standard for most purchases), and Level 3 (Building Survey — full structural inspection for older or unusual properties).

RICS also regulates property valuations — the formal valuations lenders require before approving a mortgage. Lender valuations are conducted by RICS-accredited valuers.

Self-employed applicants can't provide payslips or P60s, so lenders instead require SA302 forms — typically for the last 2–3 tax years — to verify income. The SA302 is generated automatically by HMRC when you submit a Self Assessment tax return.

You can download your SA302 directly from your HMRC personal tax account online. Your accountant can also provide a copy. Some lenders have moved toward accepting tax overviews directly from HMRC rather than SA302 forms — your broker will advise on what each specific lender requires.

For company directors who pay themselves a mixture of salary and dividends, lenders treat income differently — most will add salary and dividends together, though some only count salary. A specialist broker is essential for this scenario.

SDLT is calculated on a progressive basis, similar to income tax. Different rates apply to different portions of the purchase price — you don't pay the higher rate on the entire amount, only on the slice that falls within each band.

For first-time buyers in England: no SDLT on the first £300,000, then 5% on £300,001–£500,000. Properties over £500,000 receive no first-time buyer relief. For standard buyers: 0% up to £250,000, then 2%, 5%, 10%, 12% on successive bands.

Additional property purchases (second homes, buy-to-let) attract a 5% surcharge on top of standard rates on the entire purchase price. Company purchases also attract higher rates.

SDLT is administered by HMRC and must be paid within 14 days of completion. Your solicitor handles this on your behalf.

Every lender has its own SVR, set entirely at its own discretion (unlike tracker rates, which follow the Bank of England base rate). Typical SVRs in 2026 are 7.5–8.5% — compared to the best 5-year fixed rates of around 4.0–4.5%.

When your fixed rate ends, your mortgage automatically reverts to the SVR unless you remortgage. On a £200,000 mortgage, the difference between a 4.3% fixed rate and an 8% SVR is approximately £400/month — over £4,800 per year in unnecessary extra interest.

There is no benefit to being on the SVR. It exists as the lender's default — the rate you pay if you don't take action. Start looking for a new deal 6 months before your fixed rate ends.