Glossary - S
- Salary
- The income you are paid by your employer.
- Schedule Of Payments
- Schedule of monthly payments under a mortgage
- Search Fee
- Before buying a property you have to check with your local authority that there are no plans that will affect the value of your property. This fee you pay to your solicitor.
- Second Charge
- This is a legal charge that ranks behind a first charge, possibly to secure a second mortgage, or a guarantee given to secure other borrowings.
- Second Home
- An alternative to your main residence which is subject to capital gains tax!
- Second Job
- Income other than an individual's main employment.
- Second Mortgage
- See Second Charge.
- Secured Loan
- A mortgage or loan that is secured using your property.
- Self Build
- The construction of a property which is controlled by the borrower; not a finished unit. Loans on self build properties will normally be advanced in stage payments and are subject to strict limits depending on the value of the build at each stage. A qualified architect will need to be involved.
- Self Certification
- A mortgage where the borrower makes a statement of his or her income and the lender makes fewer checks than normal on the accuracy of this statement.
- Self Employed
- An individual working for his or herself. For mortgage purposes this will include partners in unlimited liability businesses and professional practices.
- Semi Commercial
- A property that is partly used for commercial purposes. A semi-commercial mortgage is one that is not entirely used for residential purposes, e.g. A shop.
- Shared Ownership
- A way of purchasing a property in partnership with a housing association. The borrower purchases part of the property and rents the remainder from the housing association. Also known as co-ownership, this arrangement is designed for people who could not otherwise become homeowners. Under most arrangements, the minimum purchase amount is 25% of the property value with the remainder available to be purchased in blocks of 25%.
- Simple Valuation
- This tells you the value of the property, it does not tell you if it is structurally sound. Sometimes called a basic valuation
- Sitting Tenant
- This is a person having a legal right of occupation, even if the property changes ownership, and who is able to apply to the local authority to set a fair rent. Properties with sitting tenants are generally worth at least 30% - 40% less than their open market value with vacant possession.
- Sole Occupancy
- A house that is occupied by the borrower and his or her immediate family only. No paying tenants are in residence.
- Special Condition
- A specific term, usually outlined on the mortgage offer document.
- Special Status
- See non status.
- Stabilised Rate
- A mortgage where a notional rate is set designed to be a true reflection of the likely average rate over a period. The borrower makes payments each month based on this rate, but the rate charged to the account may vary in line with market conditions. These products are designed to protect borrowers from wildly fluctuating interest rates.
- Stamp Duty
- When a property is purchased over £60,000 it is taxed at1% by the government. The rate rises above £250,000 to 3% and to 4% above £500,000. From 30th November 2001 certain areas of the country were given exempt status the areas of which can be found at the Land Registry.
- Standard Variable Rate
- The normal rate charged by a lender without any incentives (fixed rate for instance).
- Structural Survey
- The most thorough inspection that can be undertaken by a chartered surveyor. In the case of properties with movement, lenders may require a structural engineer's report.
- Studio Flat
- This is a flat comprising a single habitable room, plus bathroom and possibly separate kitchen. Many lenders will not lend on these properties as they are considered more difficult to resell.
- Subsidy (Mortgage)
- This is a payment made by an employer to subsidise the cost of interest payments on mortgage. The amount and extent of the subsidy will vary from employer to employer and these can be calculated in a variety of different ways.
- Survey
- An inspection carried out by the mortgage lender to make sure that the property forms a good security for a loan. This inspection should not be relied upon on when deciding whether to purchase a property or not. Purchasers should be advised to obtain either a house or flat buyer's report or a full structural survey before proceeding with a purchase.
- Survey Fee
- See valuation fee, home-buyer's survey fee.
The Mortgage Shop is a trading style of Mortgage Shop No1 Limited which is an appointed representative of Personal Touch Financial Services Limited which is authorised and regulated by the Financial Services Authority. The Mortgage Shop is entered on the FSA register (http://fsa.gov.uk) under reference 425677. Buy to let mortgages may not be regulated by the FSA & personal loans are not regulated by the FSA. The guidance and/or advice within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
There will be a fee for mortgage advice of £299. Telephone calls may be recorded for training purposes.
