Glossary
First-time buyer terminology explained
Last reviewed: 3 October 2026
The brief answer
Most confusion comes from a small set of words: deposit, Agreement in Principle, LTV, conveyancing, searches, survey, valuation, exchange and completion. Learn these and most emails become much easier to understand.
In plain English
Deposit — the part of the price you pay yourself. Mortgage — the loan for the rest, secured on the home. Agreement in Principle — a lender's early indication of how much it might lend. Loan-to-value (LTV) — the mortgage as a percentage of the price.
Conveyancing — the legal work of transferring ownership. Searches — checks with the council and others about the property and area. Survey — your own inspection of the property's condition. Valuation — the lender's check that the property is worth enough to lend against.
Exchange of contracts — the moment the deal becomes legally binding. Completion — the day the money moves and you get the keys.
Why it matters
Professionals use these words in every email. Understanding them helps you ask better questions and spot when something needs your action.
What to do next
- 1Keep the glossary open while reading emails.
- 2Ask your solicitor or adviser to explain any word you do not understand — it is a normal question.
Checklist
- I know the difference between valuation and survey
- I know the difference between exchange and completion
- I know what an AIP is