Loan Jargon - a comprehensive reference of loan terminology from i Secured Loans

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Sealing Fee

A charge made by lenders when a mortgage is finally paid off.

Second Charge

A Second Charge is a second mortgage on your property. It is a second claim on the property.

Second Mortgage

A loan that uses equity on a mortgaged property, as security and taken out with a different lender. As the first mortgagee holds the property deeds, the second mortgagee has to register its interest with the Land Registry and can't foreclose without the first mortgagee's permission

Security

The collateral for a loan. This whatever is pledged as a guarantee for the Secured Loan.

Security Address

This is the address that is offered as security to the lender when a borrower applies for a Homeowner Loan or Secured Loan. The better the security, the better the terms for the loan - i.e. the better interest rate offered.

Secured

This is used to describe borrowing when the lender has a charge over the assets of the borrower. This type of loan requires property or collateral to be put up against the loan.

Secured Loan or Secured Home Loan

You can get a secured home loan against the collateral in your existing property, if you are a homeowner. Nothing beats the security of your own home. It is a guarantee that even if there there's an element of uncertainty in your life, your home remains a safe harbor. This fact need not change when, due to a change in circumstances, you're in need of a large amount of cash. Your home provides security for such circumstances, and that's why lenders are much more likely to lend with a Secured Loan. There are some very competitive products available.

Self-Certified

This type of scheme allows the applicant to confirm how much they earn by "Self-certifying" their income. This is useful when a self-employed person hasn't been trading long enough to have sufficient full audited accounts. Or for employed people where a large part of their income is bonus payments, or where their income comes from several jobs.

Self-employed

A person who is works freelance, as owner of their own business. They could be a sole trader or in a partnership but are not employed by an employer.

Self-Insurance

The method of saving money to pay for possible loss rather than taking out an insurance policy against it.

Self-Liquidating

Having enough income to pay off the amount borrowed

Senior Debt

A debt whose holder has more of a claim on the debtor's assets than an other holder of another debt.

Senior Mortgage

A mortgage whose holder has more of a claim on the debtor's assets than an other holder of another mortgage.

Servicing Borrowing

Paying the interest on a loan

Settlement

The payment of debt

Settlement Date

The date on which the outstanding debt is due for repayment.

Settlement Figure

The sum quoted in order for a Secured Loan to be fully repaid on earlier than the scheduled term

Sickness and Accident Insurance

A health insurance which may be sold with some form of credit. If the borrower is unable to work because of accident or illness then the policy covers the regular payments to the lender.

Simple Interest

Interest which is charged as a constant percentage of the principal and not compounded

Single Insurance

Insurance to protect the income of the applicant, so at to protect the repayment of the loan applicant. Split or double insurance to protect the income of the second wage earner.

Soft Loan

A loan on very favourable term e.g. a project the government considers worthy

Solvent

Having enough money or assets to meet one's liabilities

Sovereign Loan

A loan by a bank to an overseas government.

Spot Interest Rate

An interest rate that is decided when the loan is made.

Stamp Duty

A tax duty imposed on some types of legal document and shown to have been paid by a stamp being fixed to the document. For example, on the purchase of properties costing more than a certain amount.

Standard Security

This is the equivalent of the Legal Charge in Scotland. Standard Security is the Scottish legal term for what is known in England as a Mortgage Deed.

Statue-Barred Loan

A debt that cannot be pursued because the time limit laid down by law has expired.

Status

The creditworthiness of a potential borrower.

Structural Survey

A detailed survey of the structure of a property carried out by an appropriately qualified Building Surveyor.

Subordinated Debt

A debit that has no claim on a debtor's assets, or less of a claim than another debt.

Sub Prime Mortgage

Mortgage given to a person who is unable to borrow money secured on a property from a standard lending source.

Sum Insured

This is the maximum amount an insurance company will pay out when a claim is made.

A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z, Full List