Glossary of Terms

We have gathered together on this page, a collection of the terms most often used in the Mortgage, Financial and Property Services Industries.

If you are searching for the meaning of a term. Please click on its initial letter below. A list of terms commencing with that letter will be presented to you. Hopefully, you will find the term you require.

If you cannot find an explanation for the term you require or you believe our description to be inaccurate, please submit your request for an addition or correction. If you have a suggested correction, please make it polite.

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Shared Ownership

A scheme operated by a housing association where a person owns part of the property and pays a mortgage on this, while the housing association owns the rest of the property and the person pays rent on this.

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Sealing Fee
This is a charge made by lenders when you repay a mortgage.
Searches
These are checks carried out during the conveyancing process. These checks are made with local authorities and other official organisations to check planning proposals and other matters that may affect the value of the property and it's saleability in the future.
Self Certified
Normally when a borrower applies for a mortgage he or she will be asked to provide pay slips or company accounts to prove their income. If it is difficult or extremely inconvenient for you to provide this documentation, you can choose to self-certify your income. This involves signing a declaration which states your income sources and amounts. Lenders will charge you higher rates than average and offer you a more limited range of mortgages if you choose to self-certify your income, so it's not a good idea to self-certify just to avoid some paperwork.
Shared Equity
A scheme operated by a developer where the developer retains a percentage equity of around 10% in the property. Thus the developer holds a second charge over the property. The 10% owing may be interest free or may incur interest and be added to the total amount owing on the property.
Shared Ownership
A scheme operated by a housing association where a person owns part of the property and pays a mortgage on this, while the housing association owns the rest of the property and the person pays rent on this.
Soil Stability
Specialist survey, which examines the ability of the soil to bear weight, without movement either vertically or laterally. The main purpose of such testing is to ensure that constructions are not likely to slide or collapse.
Stamp Duty
This is a tax payable on the purchase of a property by the purchaser. For properties with a purchase price of up to £125,000, no stamp duty is charged. For properties between £125,000 and £250,000, 1% stamp duty is payable on the purchase price. For properties between £250,000 and £500,000 it is 3% and for properties over £500,000 it is 4%. Properties in certain places may be exempt from Stamp Duty up to a purchase price of £150,000.
Subsidence
Sinking of the ground. Some houses are built on clay soils, and either the water table drops due to a long, dry spell or water is sucked out of the soil by trees and bushes. As the clay contracts it pulls the foundations, triggering deflection which may cause structural damage to buildings. Other causes may be building above mine shafts, which collapse or water leaks into the soil from, for example, a broken drainpipe and washes soil away from the foundations. This happens to soils with a high sand or gravel content usually, or sometimes in chalk.
Standard Variable Rate (SVR)
Standard Variable Rate. This is the interest rate that the lender charges. The rate goes up and down and your repayments are adjusted accordingly.