Jargon Buster
Salary
The money you receive from your employment. Commission,
overtime and bonuses are not normally considered as part
of your gross income by the lender, unless you receive
them at a guaranteed level.
Security
A piece of property designated as collateral.
Self-employed
A person who operates as a sole trader or as part of a
partnership.
Standard payment calculation
A calculation that is used to determine the monthly payment
necessary to repay the balance of a home loan in equal
installments.
Standard Variable Rate
The Standard Variable Rate is the rate which many mortgages
revert to after the introductory offer, fixed rate or
discount period is over. They are the simplest and most
traditional mortgage product with no upper or lower limit
on the rate charged, and the bank can raise or lower the
rate at their discretion (though usually this is done
broadly in line with the base rate).
Standing order
A regular payment for a fixed amount that you can ask
us to make from your account to another specified account.
Stepped discount loan
Where the discount is, for example, fixed at one level
for one year and then a slightly lesser level for two
further years. Remember it is the percentage discount
that is stepped and not the monetary amount, so your repayment
can still vary.
Stepped fixed rate loan
Where the interest is, for example, fixed at one level
for one year and then a slightly higher level for two
further years. This is not as common as finding stepped
discounted mortgages.
