Jargon Buster

At a loss to understand arrears, affidavits or air bricks? Bamboozled by balloon payments and back-to-back escrow? Confused by conveyancing, cash-flow and closing costs?

If so, our Jargon Buster will be just what you need.It's a glossary of terms packed full of property phrases, estate agent slang, financial words and other terms you may come across in your real estate or personal finance activities.

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Jargon Buster: R

Our glossary results: 60 matches!

Rafter

A sloping roof beam made of timber which forms the main body of the roof.

Rebuild cost

Required for insurance purposes and is the cost of completely rebuilding your home if it is destroyed.

Rebuilding cost

This is the recommended amount (assessed by your property valuation) that you should take out building’s insurance cover for.

Recission

When the sale of a property is cancelled or revoked.

Recording fee

A government fee for entering into the public record a property purchase or sale.

Redemption

This is the right of the mortgagor to recover mortgaged property on repayment of the loan and any interest due. This legally means that once you as the borrower have finished repaying the mortgage you took out, the property is yours and the lender has no further claim on it. If you pay of the mortgage ahead of schedule you may face a redemption penalty which compensates the lender for loss of interest.

Redemption fee

Even when you redeem (pay off) a mortgage early but in accordance with the rules and outside the redemption period, then switch to a new mortgage with the same provider, you will probably still be charged a fee. Between £30 - £40 is often charged if no new mortgage is arranged, and £60 -£80 if you move the mortgage to a new lender.

Redemption penalties

Charges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts and can be particularly severe within the first year. This is to ensure that the costs that the lender endures in setting up the mortgage are always covered. Penalties can be a fixed sum of money, though are often proportion of the loan. With cashback mortgages, you often have to repay the amount of money you received as cashback.

Redemption penalty overhang

This is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result, you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped rate in the first place.

Redemption statement

The outstanding amount to be repaid on an existing mortgage.

Redevelopment

This can be of an area or building by either a private company or the council and involves improving an area through investment.

Redundancy insurance

Another form of income protection, but one that does not cover any form of sickness, injury, or disability. The purpose of this type of policy is to replace income lost through a short to medium term period of redundancy. It provides you with a monthly tax-free income to cover a portion of your lost earnings. It is often sold in conjunction with the accident, sickness, and disability element of income protection policies, in which case it is known as Accident, Sickness and Unemployment (ASU).

Registered land

This is the database of land and property held at HM Land Registry.

Registered Social Landlord

A housing association, an individual or some other organisation that is permitted to provide housing, run housing associations, home buy and other shared ownership schemes.

Registry searches

This involves obtaining the title deed for the property, along with the Land Registry certificate. Careful scrutiny by your solicitor will hopefully confirm that the seller actually owns the property, has good title (i.e., is free to sell it) and that the sale includes any covenants associated with a property or its land.

Reinforced concrete

Very strong concrete which has steel rods inserted into it.

Reinstatement value

The cost of rebuilding your home should it be destroyed.

Relative strength

The relative strength is a measure of the performance of a company’s share price, relative to the performance of an underlying benchmark index for the whole market over a given period. This is seen as a very important technical analysis tool.

Relocating

When you are moved from one area to another often due to your work. Sometimes it is referred to as a 'company relocation' as a job or company is moving. Under these circumstances the company usually helps to pay for some of the costs

Relocation agents

Specialists in finding houses, raising finances, organising surveys, and completing negotiations when moving to a new area.

Remaining balance

The amount of unpaid principal on a home loan.

Remaining term

The original loan term minus the number of payments made.

Remedial action

Steps you would like a provider/supplier of a service to carry out to rectify a complaint you may have made. This would be your first course of action in the event of complaint and takes the form of a letter of which you should keep a copy and note the date.

Remittance fee

A charge made by the lender for sending the mortgage funds to your solicitor when the purchase is just about to be completed.

Remortgage

When an existing mortgage on a property is paid off in full and another mortgage is taken out on the same property.

Rendering

This is the finishing applied to walls. On internal walls this is usually plaster and cement on external walls. Texture can also be applied such as pebbledash.

Renovate

Usually involves major construction work to make a property habitable, that has fallen into a state of disrepair.

Rent

The money paid by a tenant to a landlord for the right to occupy a property.

Repayment

Money paid to a lender to either partially or fully clear a debt.

Repayment method

How you choose to give back the money borrowed in the form of a mortgage to buy a house.

Repayment mortgage

Each month you will make a repayment to the mortgage lender. Part of this payment will go towards reducing the total amount of capital you owe and part of it will be an interest charge on the remaining balance of the mortgage. Unless interest rates change or your introductory offer period ends, you pay the same amount each month. When one of these things does happen, repayments are altered so that the loan is still repaid at the end of the specified term.

Repayment period

The period over which the borrower must repay the lender.

Repayment plan

When a borrower falls behind in mortgage payments, many lenders will negotiate a repayment plan rather than go to court.

Repayment term

The period of time over which you will repay your mortgage to the lender.

Repayment vehicle

The method with which you choose to invest or save money to allow you to pay back an interest-only mortgage at the end of the term.

Repo rate

The Bank of England base rate.

Repossession

When the mortgage lender takes away a borrower's home because he has fallen too far behind on mortgage repayments.

Reserve price

This is the lowest price the seller will accept for a property being sold at auction. Above this the reserve price, the vendor is legally obliged to complete the sale.

Reserves

The net assets of the company attributable to ordinary shareholders, reflecting the value of funds raised from the issue of shares combined with the profits reinvested in the business after repayment of dividends.

Residents' permits

Often required in inner cities to park a vehicle. Failure to obtain a permit can lead to a fine.

Restructured loan

A mortgage in which new terms are negotiated.

Retail Price Index

An index of the average level of prices in the UK. Insurance companies often link contents insurance policies to it.

Retention

This relates to monies withheld by lenders until certain mortgage conditions are met. This will normally relate to repairs or improvements to the property that the lender is insisting on.

Retrieval cost

The cost incurred to recover amounts or items.

Reverse mortgage

A special type of loan available to equity-rich, older owners. Repayment is not necessary until the borrower sells the property or moves into a retirement community.

Review of rate

The interest rate you are charged can be reviewed either annually or on a monthly basis. This feature does not affect fixed rate mortgages during the fixed period, or capped rate products when the rate is above the cap level.

Revisionary bonus

A bonus paid annually on an endowment mortgage which is dependent on the performance of the investment fund you are using to repay your mortgage.

RICS

Professional body for surveyors which sets a code of practice for its members.

Ridge

The apex of a pointed roof.

Right of way

The legal term for the right to use someone else's property such as a shared driveway or a footpath.

Rights issue

Additional shares issued by a company to existing shareholders for an advantageous price. Often written as in the form '3 for 5 rights at £1.20'. This means an existing shareholder has the opportunity to buy a further 3 shares for every 5 they own at a price of £1.20.

Riser

The vertical face of a step.

Rising damp

Capillary action causing damp to rise up a wall from the ground below causing rot in timber and decay to plaster.

Rising property market

A period where property prices are rising as the level of demand increases.

ROCE

Return On Capital Employed. The rate of return that directors of a company have achieved on behalf of shareholders, through their management of a company's assets.

Roof cavity

Either a small loft or an inaccessible space that can be insulated to help the building retain heat.

Roof spread

Outward bowing of a wall due to the pressure of the roof.

Royal Institute of Chartered Surveyors

Professional body for surveyors which sets a code of practice for its members.

RPI

An index of the average level of prices in the UK. Insurance companies often link contents insurance policies to it.

RSL

A housing association, an individual or some other organisation that is permitted to provide housing, run housing associations, home buy and other shared ownership schemes.
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