Search

A local authority search is an examination of local planning records to uncover details of any upcoming developments near the property which could affect its future value or existing restrictions on the site.

Secured (loan)

If you should default on your mortgage, the lender can ultimately repossess your property to recover their money. The loan is hence said to be “secured” on the property. A second charge mortgage is a type of secured loan.

Self certification mortgage

A self certification (sometimes called self-cert) mortgage is a mortgage for self-employed people who do not have pay slips or do not necessarily have a regular income to confirm their earnings to a lender.

It used to be the case that the UK self certification mortgage rate tended to be substantially higher because lenders perceived this as a more risky sector to deal with. These days, by shopping around, it is possible to get a competitive self-cert mortgage, with just as many of the benefits regularly employed people enjoy.

With a self cert mortgage, you declare your annual earnings and in nearly all cases the lender will not require any proof of income.  This can be particularly beneficial to people who are self-employed and might struggle to provide detailed accounts, or people with additional incomes that are not included in traditional income calculations.

Self build mortgage

A self build mortgage is designed to help you finance the building and ownership of a house that you are about to build. The UK self build mortgage market is a specialist area, because you are asking lenders to put forward money against an asset which does not exist at the beginning of the project.

Stamp Duty

Stamp duty, or stamp duty land tax to give it its full title, is the tax levied by the government on house purchases. The amount of stamp duty you’ll pay depends on if you are a first time buyer and whether you’re buying a main, secondary residential property or a buy to let investment. For the latest stamp duty rates use our stamp duty calculator.

Status

A shorthand term for the borrower’s credit record and employment situation. See “Non-Status Loan”.

Standard Variable Rate (SVR)

A mortgage lender’s main interest rate. Fixed-rate and discount loans usually switch to SVR when the special offer period expires. Conversely, tracker mortgages switch to a fixed percentage above Bank Of England Base rate (or LIBOR)

Surrender

The process of cashing in an unwanted endowment policy with the insurer who sold it to you. Doing this often produces a poor return for the money invested to date in the policy’s early years.

Survey

An expert examination of the property you are considering buying, aimed at discovering any structural flaws or repairs needed which you may have failed to notice yourself.