Jargon Buster

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Glossaries

Term Definition
National Inspection Council For Electrical Installation Contracting
Long established, independent consumer safety organisation and the electrical contracting industry's voluntary regulatory body for electrical safety matters.
National Landlords Association
The largest UK association of private landlords, protecting and promoting their interests and providing membership benefits such as fact sheets, newsletters, insurance discounts, meetings and workshops, and favourable terms with selected suppliers of advice and services.
Negative Equity
When you owe more money to the lender than the actual market value of your property.
Negative Gearing
This is when there is a shortfall in the amount of income a property brings in in comparison to the cost of the mortgage etc.
Net Price Balance
Proportion of surveyors reporting a rise in prices minus those reporting a fall (if 30% reported a rise and 5% reported a fall, the unadjusted balance will be 25%). Reported by the Royal Institution of Chartered Surveyors on a monthly basis.
Net Yield
A way of determining the Return On Investment (ROI) of an investment.

Financial return after expense deductions = Annual rent after deducting all expenses divided by the capital value.

Formula: (annual rent - annual costs)/(Purchase costs))

Example: A property purchased at
No Money Down
When a property/land is purchased using a mortgage in a way that means no deposit it actually left in the deal.
Notice To Quit
Bringing a tenancy or a license to an end ( termination of the tenancy or licence ) requires that certain procedures are followed, depending upon the type of tenancy, for the action to be fully legal:

Off Plan
Purchasing a property before it is built on the basis of the builder's plans.
Offer
This is when you make an offer for a property for the offer amount. E.g. you can offer the asking price for a property or as many property investors do you can offer below market price for a property.
Office for National Statistics

The Office for National Statistics (ONS) is a UK Governament department charged with the collection and publication of statistics related to the economy, population and society of England and Wales at national, regional and local levels.

They produce a monthly House Price Index (HPI), previously published by the
Department for Communities and Local Government (DCLG), is a monthly release that publishes figures for mix-adjusted average house prices and house price indices for the UK, its component countries and regions.

The index is calculated using mortgage financed transactions that are collected via the Regulated Mortgage Survey by the Council of Mortgage Lenders. These cover the majority of mortgage lenders in the UK. The HPI complements other measures of inflation published by ONS such as the Consumer Price Indices, the Producer Price Indices and the Services Producer Price Indices.

This statistical bulletin provides comprehensive information on the change in house prices on a monthly and annual basis. It also includes analysis by country, region, type of buyer (first-time buyers and former owner-occupiers) and type of dwelling (new dwelling or pre-owned dwelling).Historical series for all accompanying tables that transferred from DCLG are also available in the data section of this release.

The figures published in this release are not seasonally adjusted unless otherwise stated.

Offset Mortgage
A flexible mortgage that allows the borrowers balance of current and savings accounts to be offset (take away from) their mortgage debt for the purposes of interest calculation.

The aim is to reduce the interest payments and could help reduce the mortgage quicker than the term. The lender normally charges higher interest for flexible mortgages.
Option Agreement
Provides the opportunity but not the obligation to buy a property or piece of land within a certain time. The vendor can't sell it to anyone else in that time.
Other Peoples Money
Used in the context of using Other People's Money to invest in property. This is normally done to leverage their money against the skills that you might have.
Partnership
An agreement between two or more entities to invest or go into business together.