Jargon Buster

The world of Finance is full of buzz words and Jargon. In this section I'll translate a whole rack of finance terms so you won't get caught out.

Go direct to: A-B | C-D | E-G | H-L | M-P | Q-S | T-Z | Jargon Index

This is my Index of Mortgage and Loan terms beginning with the letters Q to S.

Quotations
A Quotation is given to you when you give your details to a finance company and they give you a figure. A quotation you get for a loan or mortgage will depend on your circumstances, such as your income or age. If you agree to a quotation, you can then purchase this finance for the agreed fee.
Remortgage
A Remortgage is a new mortgage arranged through a different lender. You use this by getting a new mortgage on your house. The difference between what you have already paid of your last mortgage and the current value is classed as equity in your property. You can have a new mortgage on your existing home either the same size and have a lower repayment or make it bigger and have funds for home improvements or a holiday.
Right to Buy Mortgage
If you have lived in a Council Property for a number of years you may have the right to buy that property. The council give you a discount to buy the property.
Secured Loan
A Secured Loan is a loan which is secured on your home. Secured loans are only available to homeowners but usually have a much lower rate than unsecured loans as the home is used as security on the repayments.
Self Certification Mortgage
The lender relies on you to certify your income and will not check to confirm this with an employer. If you are self employed and have less than 3 years accounts then you would need a Self Certification Mortgage.
Self Employed Mortgage
Being self employed can make it harder to get a mortgage. If you are lucky you could be certified with over 3 years accounts but if you have less than 3 years accounts then you are classed as Self Certified (see above).
Stamp Duty
A Government tax you have to pay on the purchase price of any property with a value of £60,000 or more.
Standard Variable Rate
This is set by the Bank of England and stays above the Bank of England Base Rate and can go up and down like any Variable Rate or Tracker Rate.
Structural Survey
A Structural Survey is highly recommended, especially for older houses as it will show up any repairs they may need to be done, or underlying problems.
Sub Prime
This is a term used by lenders to describe the sector of Mortgage Problems. A Sub Prime mortgage is the same as a Non Status Mortgage, a Non Standard Mortgage, an Adverse Credit Mortgage, a Poor Credit Mortgage or a Bad Credit Mortgage. Put simply, it is a Mortgage for People with Credit Problems.