The Better-Mortgages uk mortgage terminology glossary (S)

As with any industry, the world of mortgages has it's own language and definitions. Use the definitions in this glossary to look up mortgage terminology you are not familiar with.

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Scottish Homes

The regulatory and supervisory body for housing associations in Scotland is called ' Scottish Homes '.

Searches

The purpose of Searches are to establish whether there are any encumbrances, or other disabilities or concerns which may adversely affect the value of the property, may render the property unavailable for sale, or which might cause the purchaser not to buy. Searches are usually undertaken by the Solicitor  or Conveyancer acting for the purchaser. For registered land he will search the Land Registry. For unregistered land he will search the Land Charges Registry. There are several other searches which can be undertaken, such as local land charges, parcels index search, and so on. 

Secured second advance

A further advance to a mortgage client which is a separate regulated loan governed by the Consumer Credit Act (1974) is sometimes called a Secured second advance

Self build

When you build or project manage the building of your own home you are performing a Self build project.

Self certification mortgage

If income is not as predictable as it is for a salaried employee (such as for a company director, contract worker or part time worker), the borrower can take out a Self certification mortgage You will be required to make a statement of income but the lender will not require to provide proof. If you arrange a self certification mortgage through a mortgage broker, the broker is required to satisfy themselves that the recommended mortgage is affordable. This is sometimes confused with a self employed mortgage (see below).

Self employed mortgage

If you are a business owner (a sole trader, partner, or limited company) and your income is not as predictable as it is for a salaried employee, the borrower can take out a Self employed mortgage You will be required to provide audited business accounts for typically the last three years.

Settlement

An alternative term for the completion of the mortgage is Settlement - the point at which the mortgage contract becomes effective.

Settlement fees

Fees charged for early redemption of fixed rate mortgages as a deterrent to switching out of the product are called Settlement fees

Shared ownership

A scheme which enables a borrower to buy a proportion of a property, with the remainder being owned by a housing association is called Shared ownership . The borrower pays rent on the portion owned by the housing association, and is usually entitled to buy subsequent shares in the property until they fully own the property, a process known as `stair-casing'.

Specialised mortgage house

A mortgage lender which operates from a single office or through a network of introducers, rather than having high street outlets, is called a Specialised mortgage house or .centralised lender. Rather than funding mortgages from customer savings accounts, their mortgages are mainly funded from wholesale sources.

Squatter's rights

For Squatter's rights see possessory title.

Stabilised payment mortgage

With a Stabilised payment mortgage the borrower is allowed to select an interest rate within a given range. If at the end of an agreed period the loan has been over paid, a capital adjustment will be made to reduce the debt. Conversely, if the loan has been under paid, the capital sum then owed is increased.

Stair-casing

This relates to shared ownership mortgages. Stair-casing is the process of buying subsequent shares in the property

Stamp duty

The UK Government levies a tax called Stamp duty on the sale of a property, payable when the conveyance of the property takes place. It is a tax which is imposed on the filing of certain documents relating to the transfer of ownership. The rates of stamp duty vary depending on the value of the property (£125K or over).

Standard security

The main type of mortgage deed used in Scotland is called a Standard security.

Standard variable mortgage

A mortgage in which the amount of interest you repay increases or decreases in line with the lenders interest rate changes is called a Standard variable mortgage . 

Status

A generic term used by lenders, ' Status ' refers to any matter affecting the credit worthiness of the mortgage applicant.

Structural survey

An extensive check of the structure of a property to ensure the building is in good order is called a Structural survey

Subrogation

The substitution of one person (or thing) for another person (or thing) is called Subrogation . The person subrogated is said to 'stand in the shoes' of the other. Consequently, the one subrogated has the rights of the person who he has replaced. An example of this is where an insurer pays out under a policy, for property of the insured which has been stolen. The insurer effectively becomes the owner of that property so if it is recovered, the insurer has the right to receive any value from disposal.

Sue on personal covenant

The right of the lender to sue a borrower for the outstanding debt .

Surety

A guarantor who supports his guarantee by depositing some form of security is providing ' Surety '..

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