Glossary > The Letter S

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The Letter S
Saber Finance know the finance world is full of terms, phrases, buzz words and jargon.

On this page we explain,
Second Homes > Secured Loan > Self Cert Mortgage > Self Employed Mortgage > Shop Around > Stamp Duty > Standard Cover > Store Card > Structural Survey

Second Homes
A second home is a property owned but not lived in for most of the time. A holiday home or villa are examples of second homes. Purchasing a second home can be used as a way of investing capital in the housing market especially since it is currently so buoyant.
With current low mortgage rates and council tax allowing reductions for second homes there's no reason why you can't have two homes, as long as you can afford their cost.
A second home is a considerable investment whatever your intentions and we have a section on property investment for those visitors interested.

Secured Loan
A secured loan or "homeowner loan" is personal finance which is borrowed and then repaid over a set term. The secured loan is secured upon property, usually the home, making it only suitable for visitors who own a property. Secured loans are usually given better rates than tenant loans because of their security and generally cost less overall.
For more information try our home loans section.

Comparing Secured Loans
The loans term is the period of time over which the loan is taken out and then repaid. Many loans come established with set term periods, with higher monthly repayments for shorter terms and lower repayments for longer terms. Loans advertised with set terms will usually display the loans overall cost to the borrower which makes comparing lenders easy.
The secured loans rate would still be dependant on your credit rating and history, which could cause issues if you have a problem credit rating.
After finance and a home owner? Try the secured loan best sellers to find a lender.

Self Cert Mortgage
A self cert mortgage is a mortgage that relies on self employed accounts.
Self certification mortgages are a mortgage product offered on the basis of a self employed person stating what their income is likely to be, rather than being able to provide definite evidence of their income. An accountant could be required to back up this statement and with two or three years accounts available should be enough to satisfy the lenders. Self employed people can find them selves with an adverse credit or non status rating because they can not provide any proof of income or have little or no credit record.
Mortgage lenders are less friendly of customers who can not prove their earnings using pay slips, and because of this those self employed accepted for mortgages are likely to face greater charges and repayment amounts.
Self certification mortgages charge a higher interest rate because most businesses fail within the first two years of trading, and if customers are left with large debt and arrears, there is a possibility they could lose their home and this leaves the mortgage lender unable to recover their outlay because of insufficient loan security.
If you are after a self cert mortgage try the mortgage lenders search directory, change the mortgage type to self certification mortgage.

Self Employed Mortgage
A self employed mortgage is a mortgage that relies on self certification.
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.
If you already hold a mortgage on a property and are looking at becoming self employed you will need to inform your mortgage lender. Your mortgage agreement was made upon your employed status at that time, and any change in this could affect the agreement.

Shop Around
Shopping around is a term used when actively seeking cheaper deals and better offers on financial products. It consists of contacting lenders for a quote for their products.
After you have a quote from one lender you should then proceed to contact another lender to see if they are able to beat that quote. This has the additional benefit of putting the two lenders in direct competition, and they will strive to outdo one another. Resulting in a lower quote for you.

Vehicle Insurance Quotes and Shopping Around
Shopping around for vehicle insurance could save the average motorist on their premiums. But despite this, millions of motorists only obtain a single quote when they renew their insurance cover. Additionally many motorists who have been with their current insurer for a few years said that their premiums increased the last time they renewed their policies.
Competition is vast in the vehicle insurance market, therefore shopping around for quotes should save you a significant amount of money. Put simply, why should you accept a premium which is high without first checking around to see what else is available?
Applying for quotes online can especially save you money, because it reduces the insurers overheads making for cheaper finance.
If you are looking for car insurance try our best buy table, or search for vehicle insurance using the search directory.

Stamp Duty
Stamp duty is a tax charged on the purchase of property. Stamp duty is calculated as a percentage of the properties value, so the higher the property value, the higher the stamp duty charged.
Recently the Chancellor doubled the stamp duty starting threshold, to help first time buyers arrange mortgages and assist families climb on to the housing ladder. This has had the effect that a lot of properties no long fall into the stamp duty thresholds.
Stamp duty land tax will require buyers to complete a self assessment form. Although tax thresholds will remain the same, the forms will reveal those homebuyers paying over the odds for fixtures and fittings in return for the sale price being fixed below a particular threshold. The tax office will have the power to insist buyers, it suspects of tax evading, pay the full stamp duty amount. There could also be fines and interest charges for the buyers and sellers involved.

Standard Cover
Standard cover is the term given to the most basic insurance cover provided by a particular product. Usually standard cover will protect against most of the possible occurrences that are being insured against.
Standard cover although being the most basic cover will for most of the time be sufficient for your needs. The precise terms, conditions and depth of cover is dependant on the insurer and their products. It is usually possible to add items to a standard cover for a fee to provide an item with enhanced protection.
For great insurance offers, try the insurance best sellers directory.

Store Card
Store cards are a form of consumer credit, essentially they are a line of credit which can only be used in a single shop or chain of stores. The store card comes with pre-set rates and with stringent terms. A credit check on applicants is usually used to set the level of credit the holder can draw on.
The store card does not allow the holder to draw cash and just like credit cards you will be sent a monthly bill. APR's and interest rates are usually higher than other plastic with sharp penalty charges for any defaults or late payments.
A store card will enable the holder to make savings on items in stores, but some consider store cards to be merely advertising gimmicks with little benefits.
For more information try the personal finance section and our consumer credit page.

Structural Survey
The term ability to pay means simply just that, before borrowing finance you should check you have a sufficient income to meet its repayments. A simple way to ensure you have sufficient income to meet your obligations is to compare your outgoing expenses against your incoming. If you have more coming in than is going out, will the difference cover the cost of the finance you are considering applying for.

If you are in any doubt about any financial product or term we recommend that you seek advice from a financial advisor.

If you're after Finance Information, Saber Finance is here to help.