Jargon Buster

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Term Definition
Current Account Mortgage
A flexible/offset mortgage that can keep all your finances in one place. It combines your mortgage with a current account and the money in the current account can be automatically set against the mortgage balance and then interest only charged on the outstanding amount of the loan.

In practice this should mean that interest payments should be reduced.
Decision In Principle
The likely outcome of a loan application and first step in obtaining a mortgage. Not a formal offer, but includes a credit check with a credit reference agency and an assessment of your ability to repay the loan amount requested.
A written instrument that, when executed and delivered, transfers ownership of a property.
Deed Of Covenant
An agreement in a deed to transfer income from one person to another in a tax efficient way
Deed Restriction
Clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions, for example, they may limit the density of buildings, dictate the types of structures that can be erected or prevent buildings from being used for specific purposes or even from being used at all.
This is when you have failed to make payments as you have agreed to. In property terms this is normally used when talking about missed payments on your mortgage.
Delayed Completion
Completion is classed as delayed if they take over 28 days to complete after exchange of contracts.
Department Of Social Security
This department is now part of t he Department of Work and Pensions
Department Of Work And Pensions
Government department responsible for welfare and employment issues. Formally the Department Of Social Security
Sum paid upfront before receipt of product/service. In Property either a lump sum paid to the seller towards the overall cost of the property and required for exchange of contracts, or the money provided by a Tenant to cover potential damages.
Deposit Protection Scheme
These schemes ensure that money paid by tenants as deposits are kept safe and a landlord must use either a custodial or insured scheme if they take deposits.
Loss in value of an asset over its estimated useful life.
Disbursements are the term used to mean legal costs involved with purchasing a property.
Discounted Rate
An interest rate lower than the lender's Standard Variable Rate for a mortgage. This is normally discounted for a limited period and then will revert back to the lenders Standard Variable Rate (SVR)
Discounted Tracker Rate Mortgage
This is a variable rate mortgage that is discounted from the Bank of England's base rate. It is usually discounted by a set percentage but will increase / decrease in line with the Bank of England's base rate.

For Example: If the Base Rate is 2% and the discount is 0.5%, the actual rate will be 1.5%. If the base rate increases to 3%, the actual rate will be 2.5%.

The discounted rate is normally for a set period of time and there are usually early repayment charges that will be charged if the loan is repaid within the discounted period.