Switch Mortgages
Glossary of Mortgage Terms: S to Z

Mortgage Terms Defined on this page:

Second Charge, Secured Loan,
Standing Order, Store Card,
Switch Mortgages, Term, Terms And Conditions,
Unsecured Loan, Value-Added Service,
Variable Interest Rate Loans, Write Off.

Please see further definitions on the pages below:

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

Definitions:

Second Charge

A second charge refers to the order in which a loan is repaid should the borrower default on the loan. Thus a mortgage is normally the first charge, which means that in the event that a property is repossessed then any money outstanding will be repaid to the lender of the mortgage lender, if another loan is secured against the propery then this is likely to repaid as a second charge, i.e. after the first charge has been repaid in full. Thus loans that are referred to as a second charge tend to charge higher interest rates, since the inherent risk in lending a second charge is higher.

Secured Loan

A loan which is secured by something valuable that you own, such as your home or possibly your car. If you don't pay back the money you've borrowed, the Lender can get it back by taking from you, or forcing you to sell, whatever it is you've secured the loan against.

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Standing Order

A payment arrangement where you instruct your bank to pay a fixed amount to a named Payee at regular intervals or on a particular date.

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Store Card

A Credit Card issued by a retailer, which can only be used in their stores. They are often very easy to get but if you don't pay off the balance at the end of the month the Interest Rates are very high. You should be able to get a much better Interest Rate somewhere else.

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Sub Prime Mortgage

Sub prime is the industry term used for mortgages which are available to people with a history of poor credit.

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Switch Mortgages

Changing mortgages or mortgage lenders.

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Term

The length of time over which a loan will be paid back. A longer Term means lower monthly payments because they amount you have borrowed is spread over more months. However, you will pay more Interest so you pay more money back in total. Also known as the Repayment Period or the Loan Term.

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Terms And Conditions

The rules! When you take out a loan you and the Lender must agree on the details of the loan such as the Interest Rate, the Term, charges for late payment and the consequences of not keeping up the repayments. You must sign a document to show that you accept these Terms and Conditions before the loan can go ahead.

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Unsecured Loan

With an Unsecured Loan you don't have to use a specific possession of yours as security against not repaying the loan. This means that your house can't be taken away from you if you don't make the repayments. However, the Lender can blacklist you and you may have trouble getting a Credit Card or mortgage in the future, and in some cases they may have a general claim on your possessions up to the value of the loan.

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Value-Added Service

Extra benefits or services provided to you by a Financial Services Provider because you have taken out a loan with them. The Lender provides these services as an extra way of trying to persuade you to take a loan out with them.

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Variable Interest Rate Loans

A loan where the Interest Rates changes throughout the Term to reflect changes in the Bank of England Base Rate.

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Write-Off

If a loan provider removes an account from its books it is described as a write off. Also known as a charge off, the outstanding balance is absorbed by the loan provider.

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Please see further definitions on the pages below:

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