--- title: "Definitions: S to W" description: "A dictionary of the mortgage and property finance terms used across Mortgage Lane, each defined in full, searchable, and listed with the pages that use it. Terms S to W." url: "https://mortgagelane.com/definitions/5" site: "Mortgage Lane" date: "2026-10-01" reviewed: "2026-10-01" reading_time: "47 min" language: "en-GB" robots: "index,follow" --- # Definitions: S to W A dictionary of the mortgage and property finance terms used across Mortgage Lane, each defined in full, searchable, and listed with the pages that use it. Terms S to W. ## Definitions Every term we use across the site, defined in full and in one place. Search it, filter it by subject, and see which pages each term is used on. [A](https://mortgagelane.com/definitions#dict-a) [B](https://mortgagelane.com/definitions#dict-b) [C](https://mortgagelane.com/definitions#dict-c) [D](https://mortgagelane.com/definitions/2#dict-d) [E](https://mortgagelane.com/definitions/2#dict-e) [F](https://mortgagelane.com/definitions/2#dict-f) [G](https://mortgagelane.com/definitions/2#dict-g) [H](https://mortgagelane.com/definitions/2#dict-h) [I](https://mortgagelane.com/definitions/3#dict-i) [J](https://mortgagelane.com/definitions/3#dict-j) [K](https://mortgagelane.com/definitions/3#dict-k) [L](https://mortgagelane.com/definitions/3#dict-l) [M](https://mortgagelane.com/definitions/3#dict-m) [N](https://mortgagelane.com/definitions/3#dict-n) [O](https://mortgagelane.com/definitions/3#dict-o) [P](https://mortgagelane.com/definitions/4#dict-p) [Q](https://mortgagelane.com/definitions/4#dict-q) [R](https://mortgagelane.com/definitions/4#dict-r) [S](#dict-s) [T](#dict-t) [U](#dict-u) [V](#dict-v) [W](#dict-w) Page 5 of 5 [A–C](https://mortgagelane.com/definitions) [D–H](https://mortgagelane.com/definitions/2) [I–O](https://mortgagelane.com/definitions/3) [P–R](https://mortgagelane.com/definitions/4) S–W - S38 terms - [SA302 and tax year overview](https://mortgagelane.com/definitions/5#def-sa302)Lending and affordability — HMRC's tax calculation for a Self Assessment year (the SA302) and its summary of that year's account (the tax year overview), which lenders use as evidence of self-employed income.SA302 and tax year overview: Full definition · used on 15 pagesThe SA302 is HMRC's calculation of the tax due for a Self Assessment year. It shows the total income on which tax is due, by source, the allowances and reliefs given and how the tax was worked out. It does not show payments on account already made or other amounts outstanding. A taxpayer who files online can print it from their HMRC online account for each of the last four years, from 72 hours after the return is sent, and a return filed through commercial software, including a Making Tax Digital return, produces its calculation in that software ([GOV.UK: get your SA302 tax calculation](https://www.gov.uk/sa302-tax-calculation)).The tax year overview is HMRC's summary of the same year's account, setting out the tax for the year and the payments allocated to it, and it can be printed for any year. Lenders assessing a sole trader or a partner on [net profit](https://mortgagelane.com/definitions/3#def-net-profit), or a company director on salary and dividends, usually ask for both documents for each year they read. [HMRC](https://mortgagelane.com/definitions/2#def-hm-revenue-and-customs) suggests checking that the lender accepts copies printed by the applicant. — Used on · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [Mortgages With Decreasing Profits, Self-Employed Income Falls](https://mortgagelane.com/mortgages/mortgages-with-decreasing-profits) · [One Year Self-Employed Mortgages, 1 Year's Accounts](https://mortgagelane.com/mortgages/one-year-self-employed-mortgages) · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-mortgages) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Retained Profits Mortgages, Director Cash and Reserves Checks](https://mortgagelane.com/mortgages/retained-profits-mortgages) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) · [Sole Trader Mortgages, Net Profit, SA302s and Lender Methods](https://mortgagelane.com/mortgages/sole-trader-mortgages) · [Barrister mortgage](https://mortgagelane.com/insights/barrister-mortgage) · [CIS Mortgages, Construction Industry Scheme](https://mortgagelane.com/mortgages/cis-mortgages) · and 3 more - [Salaried member (LLP)](https://mortgagelane.com/definitions/5#def-salaried-member)Lending and affordability — A member of a limited liability partnership who is taxed as an employee because all three statutory conditions apply: mainly fixed pay, no significant influence and a capital contribution below 25% of that pay.Salaried member (LLP): Full definition · used on 1 pageUnder sections 863A to 863G of the Income Tax (Trading and Other Income) Act 2005, a member of a UK [limited liability partnership](https://mortgagelane.com/definitions/3#def-limited-liability-partnership) is treated as employed by it for income tax where three conditions are all met. Condition A: at least 80% of the amount payable for the member's services is expected to be disguised salary, meaning fixed, or variable without reference to the LLP's overall profits or losses. Condition B: the member's rights and duties do not give them significant influence over the LLP's affairs. Condition C: the member's capital contribution is less than 25% of that disguised salary ([legislation.gov.uk: ITTOIA 2005, section 863A](https://www.legislation.gov.uk/ukpga/2005/5/section/863A)). If any condition is not met, the member is taxed on their profit share like a partner.A salaried member is paid through [PAYE](https://mortgagelane.com/definitions/4#def-pay-as-you-earn) and the LLP pays employer's National Insurance on what it pays them. "Salaried partner" is also used in general partnerships, where HMRC says it usually describes an employee, although whether someone is a partner or an employee depends on the facts. Lenders usually assess salaried members and salaried partners who are employees on payslips and P60s. — Used on · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-mortgages) - [Second charge bridging loan](https://mortgagelane.com/definitions/5#def-second-charge-bridging-loan)Bridging finance — A short-term loan secured against a property behind an existing first-charge mortgage.Second charge bridging loan: Full definition · used on 9 pagesA short-term loan secured against a property behind an existing first-charge mortgage.The lender considers total secured borrowing and the proposed repayment strategy. Existing lender consent may be required. Regulatory status depends on the agreement and applicable rules; the second charge does not remove the obligation to pay the first mortgage. — Used on · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Second charge bridging loans](https://mortgagelane.com/guides/bridging-loans/second-charge-bridging-loans) · [Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide) · [Bridging Loan Northern Ireland](https://mortgagelane.com/insights/bridging-loan-northern-ireland) · [Bridging Loan for a Self-Build \| Plot Purchase & Gaps](https://mortgagelane.com/short-term-finance/for-a-self-build) · [Bridging Loans: detailed guide](https://mortgagelane.com/guides/mortgages-bridging-loans-details) · [First charge and second charge bridging loans](https://mortgagelane.com/guides/bridging-loan-guide/first-charge-and-second-charge-bridging-loans) · [The Beginner’s Guide to Bridging Finance](https://mortgagelane.com/insights/the-beginners-guide-to-bridging-finance) · [Third charge bridging loans](https://mortgagelane.com/guides/bridging-loans/third-charge-bridging-loans) - [Second charge business loan](https://mortgagelane.com/definitions/5#def-second-charge-business-loan)Regulation — A second charge for more than £25,000, ranking behind another mortgage on the land and taken wholly or predominantly for a business the borrower carries on or intends to carry on. It is excluded from the regulated mortgage contract definition.Second charge business loan: Full definition · used on 2 pagesA second charge business loan is a loan secured on land that would otherwise be a [regulated mortgage contract](https://mortgagelane.com/definitions/4#def-regulated-mortgage), where the lender provides credit of more than £25,000, the mortgage ranks behind one or more other mortgages on the land, and the borrower enters into the agreement wholly or predominantly for the purposes of a business they carry on or intend to carry on. Article 61A of the Regulated Activities Order excludes it from the regulated mortgage contract definition ([legislation.gov.uk: Regulated Activities Order, article 61A](https://www.legislation.gov.uk/uksi/2001/544/article/61A)), and credit of that size for business purposes is also exempt from the consumer credit rules under article 60C.The lender can rely on a [business purpose declaration](https://mortgagelane.com/definitions#def-business-purpose-declaration) in the agreement, which states that the loan is for business purposes, that the borrower will not have the protection and remedies of a regulated mortgage contract, and that they should take independent legal advice if in any doubt. The presumption does not apply where the lender knows or has reasonable cause to suspect the loan is not for business. A second charge of £25,000 or less stays regulated. In Scotland the security is a second-ranking [standard security](https://mortgagelane.com/definitions/5#def-standard-security). — Used on · [Release Equity From Your Home, Remortgage and Equity Release](https://mortgagelane.com/mortgages/release-equity-from-your-home) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) - [Second-charge mortgage](https://mortgagelane.com/definitions/5#def-second-charge-mortgage)Residential — An additional loan secured against a property behind an existing first-charge mortgage.Second-charge mortgage: Full definition · used on 35 pagesAn additional loan secured against a property behind an existing first-charge mortgage.The first mortgage remains in place. Both loans must be repaid, and the second lender assesses available equity and repayment capacity. Compare all fees and commitments with the cost of remortgaging.Sources: [MoneyHelper: second-charge mortgages](https://www.moneyhelper.org.uk/en/homes/buying-a-home/second-charge-or-second-mortgages). — Used on · [Buy to let second charge mortgages](https://mortgagelane.com/guides/second-charge-mortgages/buy-to-let-second-charge-mortgages) · [Can I borrow money against my house to buy land?](https://mortgagelane.com/guides/land-bridging-loans/can-i-borrow-money-against-my-house-to-buy-land) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [Expat Mortgages](https://mortgagelane.com/specialists/expat-mortgages) · [HELOC: Home Equity Line of Credit in the UK](https://mortgagelane.com/guides/alternatives-to-bridging-loans/heloc) · [Home refurbishment mortgages](https://mortgagelane.com/guides/refurbishment-loans/home-refurbishment-mortgages) · [Land Bridging Loans](https://mortgagelane.com/short-term-finance/land-bridging-loans) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Refurbishment Loans](https://mortgagelane.com/short-term-finance/refurbishment-loans) · [Release Equity From Your Home, Remortgage and Equity Release](https://mortgagelane.com/mortgages/release-equity-from-your-home) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Remortgage for Home Improvements, Extensions and Lofts](https://mortgagelane.com/mortgages/remortgage-for-home-improvements) · and 23 more - [Second home mortgage](https://mortgagelane.com/definitions/5#def-second-home-mortgage)Residential — A residential mortgage on a property the borrower will use themselves alongside their main home, assessed on their income with both mortgages counted.Second home mortgage: Full definition · used on 1 pageA second home mortgage is a residential mortgage on a property the borrower will live in for part of the time alongside their main home, such as a flat near work or a weekend home. Because the borrower uses it as a dwelling, it is normally a [regulated mortgage](https://mortgagelane.com/definitions/4#def-regulated-mortgage), and the lender assesses [affordability](https://mortgagelane.com/definitions#def-affordability) on the borrower's income, with the mortgage on the main home and the second home's running costs counted as commitments.It differs from a [buy-to-let mortgage](https://mortgagelane.com/definitions#def-buy-to-let-mortgage), which is assessed mainly on the rent a tenant pays, and from a [holiday let mortgage](https://mortgagelane.com/definitions/2#def-holiday-let-mortgage), which is assessed on projected letting income and limits the owner's own use. A buyer who keeps their main home usually pays the higher rates of [Stamp Duty Land Tax](https://mortgagelane.com/definitions/5#def-stamp-duty-land-tax) in England and Northern Ireland on a second home, the [Additional Dwelling Supplement](https://mortgagelane.com/definitions#def-additional-dwelling-supplement) in Scotland and the higher rates of [Land Transaction Tax](https://mortgagelane.com/definitions/3#def-land-transaction-tax) in Wales ([GOV.UK: buying an additional residential property](https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property)). — Used on · [Remortgage to Buy a Second Property, Buy to Let or Second Home](https://mortgagelane.com/mortgages/remortgage-to-buy-second-property) - [Section 106 agreement](https://mortgagelane.com/definitions/5#def-section-106-agreement)Planning and tenure — A legally binding planning obligation under section 106 of the Town and Country Planning Act 1990 that makes a development acceptable in planning terms, for example by requiring affordable homes or a contribution to local infrastructure.Section 106 agreement: Full definition · used on 10 pagesA planning obligation is agreed between someone with an interest in the land and the local planning authority, or given as a unilateral undertaking. It runs with the land, so it binds later owners, and it must be necessary to make the development acceptable, directly related to it, and fairly and reasonably related to it in scale and kind.In England and Wales a planning obligation is a local land charge, so a buyer's conveyancer finds it in the local search, and it can be modified or discharged by agreement with the authority or, once the relevant period has passed, on an application under section 106A. Where it restricts the sale or occupation of a home, mortgage lenders look for a [mortgagee in possession clause](https://mortgagelane.com/definitions/3#def-mortgagee-in-possession-clause).In Scotland the equivalent is a planning obligation under section 75 of the Town and Country Planning (Scotland) Act 1997, and in Northern Ireland a planning agreement under section 76 of the Planning Act (Northern Ireland) 2011. [GOV.UK: planning obligations](https://www.gov.uk/guidance/planning-obligations). — Used on · [Ground Up Development Finance](https://mortgagelane.com/short-term-finance/ground-up-development-finance) · [New Build Mortgages \| Deposits, Incentives & Timing](https://mortgagelane.com/guides/residential/new-build-mortgages) · [Property Development Finance in Scotland](https://mortgagelane.com/short-term-finance/property-development-finance-scotland) · [Section 106 Mortgages, Discounted and Restricted Homes](https://mortgagelane.com/mortgages/section-106-mortgages) · [95% Mortgages](https://mortgagelane.com/mortgages/95-percent-mortgages) · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · [Holiday Let Mortgage Guide](https://mortgagelane.com/guides/holiday-let-mortgage-guide) · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · [Residential Development Finance](https://mortgagelane.com/short-term-finance/residential-development-finance) - [Section 257 HMO](https://mortgagelane.com/definitions/5#def-section-257-hmo)Buy-to-let — A building converted into self-contained flats that is treated as an HMO because the conversion does not meet building standards and fewer than two-thirds of the flats are owner-occupied.Section 257 HMO: Full definition · used on 2 pagesA building converted into self-contained flats that is treated as an HMO because the conversion does not meet building standards and fewer than two-thirds of the flats are owner-occupied.The test is in section 257 of the Housing Act 2004, which applies in England and Wales. For conversions completed before 1 June 1992 the benchmark is the standard of the Building Regulations 1991. Section 257 blocks fall outside mandatory licensing in England but can be licensed under a council's additional or selective scheme, and most lenders assess them on HMO criteria. — Used on · [Converted MUFB HMO Mortgages](https://mortgagelane.com/mortgages/converted-mufb-hmo-mortgage) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) - [Selective licensing](https://mortgagelane.com/definitions/5#def-selective-licensing)Buy-to-let — A council scheme under Part 3 of the Housing Act 2004 that requires landlords in a designated area of England or Wales to hold a licence for each privately rented home, not only for HMOs.Selective licensing: Full definition · used on 14 pagesA council may designate all or part of its district where the statutory conditions are met. Within the area each house let under a tenancy that is not exempt needs a licence; social housing tenancies are exempt. It runs alongside [HMO licensing](https://mortgagelane.com/definitions/2#def-hmo-licence). [GOV.UK: selective licensing guide](https://www.gov.uk/government/publications/selective-licensing-in-the-private-rented-sector-a-guide-for-local-authorities). — Used on · [Bridging Loans for HMOs \| Buy, Convert & Refinance](https://mortgagelane.com/short-term-finance/bridging-finance-for-hmos) · [Portfolio Mortgages, Portfolio Landlord Rules and Stress Tests](https://mortgagelane.com/mortgages/property-portfolio-mortgages) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Converted MUFB HMO Mortgages](https://mortgagelane.com/mortgages/converted-mufb-hmo-mortgage) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [HMO Mortgage Liverpool](https://mortgagelane.com/guides/hmo-mortgages/liverpool) · [HMO Mortgages](https://mortgagelane.com/mortgages/hmo-mortgages) · [HMO Mortgages Guide](https://mortgagelane.com/guides/hmo-mortgage-guide) · [HMO Mortgages London](https://mortgagelane.com/guides/hmo-mortgages/london) · [HMO Mortgages: detailed guide](https://mortgagelane.com/guides/mortgages-hmo-mortgages-details) · [HMO mortgage Birmingham](https://mortgagelane.com/guides/hmo-mortgages/birmingham) · [HMO mortgage Manchester](https://mortgagelane.com/guides/hmo-mortgages/manchester) · and 2 more - [Self-build bridging](https://mortgagelane.com/definitions/5#def-self-build-bridging)Bridging finance — Short-term secured finance for a plot purchase or a funding gap during construction of a home.Self-build bridging: Full definition · used on 3 pagesShort-term secured finance for a plot purchase or a funding gap during construction of a home.The repayment plan may be a staged self-build mortgage, a mortgage on the completed home or a property sale. Intended occupation matters when deciding whether the bridge is regulated.[Read about bridging loan for a self-build](https://mortgagelane.com/short-term-finance/for-a-self-build). — Used on · [Bridging Loan for a Self-Build \| Plot Purchase & Gaps](https://mortgagelane.com/short-term-finance/for-a-self-build) · [Bridging Loans for Barn Conversions \| Class Q & Planning](https://mortgagelane.com/short-term-finance/bridging-finance-for-barn-conversions) · [Renovation Mortgages](https://mortgagelane.com/insights/renovation-mortgages) - [Self-build mortgage](https://mortgagelane.com/definitions/5#def-self-build-mortgage)Residential — A mortgage that funds the construction of a home, usually by releasing money at agreed stages of the project.Self-build mortgage: Full definition · used on 34 pagesA mortgage that funds the construction of a home, usually by releasing money at agreed stages of the project.A facility may include the plot purchase. Stage payments can be made before or after work, depending on the product, so the funding schedule must match the build budget and cash available. — Used on · [Barn Conversion Mortgages](https://mortgagelane.com/insights/barn-conversion-mortgages) · [Barn conversion mortgage](https://mortgagelane.com/guides/self-build-mortgages/barn-conversion-mortgage) · [Bridging Loan for a Self-Build \| Plot Purchase & Gaps](https://mortgagelane.com/short-term-finance/for-a-self-build) · [Bridging Loans for Barn Conversions \| Class Q & Planning](https://mortgagelane.com/short-term-finance/bridging-finance-for-barn-conversions) · [Development finance for self build](https://mortgagelane.com/guides/self-build-mortgages/development-finance-for-self-build) · [Home renovation loan](https://mortgagelane.com/guides/self-build-mortgages/home-renovation-loan) · [Land Bridging Loans](https://mortgagelane.com/short-term-finance/land-bridging-loans) · [Land finance for self-build developers](https://mortgagelane.com/guides/land-bridging-loans/land-finance-for-self-build-developers) · [Self Build Mortgage Lenders](https://mortgagelane.com/insights/self-build-mortgage-lenders) · [Self Build Mortgages](https://mortgagelane.com/short-term-finance/self-build-mortgages) · [Self Build Mortgages: detailed guide](https://mortgagelane.com/guides/mortgages-self-build-mortgages-details) · [Self-build mortgage for a barn conversion](https://mortgagelane.com/guides/barn-conversion-mortgages/self-build-mortgage-for-a-barn-conversion) · and 22 more - [Self-employed mortgage](https://mortgagelane.com/definitions/5#def-self-employed-mortgage)Residential — A mortgage application assessed using evidence of self-employed income, such as business accounts and tax documents.Self-employed mortgage: Full definition · used on 33 pagesSelf-employed applicants need to show the income available to support their mortgage payments. Lenders may ask for business accounts, [tax calculations](https://mortgagelane.com/definitions/5#def-sa302) and bank statements. The evidence required depends on the lender and the applicant’s circumstances.[Read about self-employed mortgages](https://mortgagelane.com/mortgages/self-employed-mortgages). MoneyHelper explains the documents commonly used in [a mortgage application](https://www.moneyhelper.org.uk/en/homes/buying-a-home/how-to-apply-for-a-mortgage). — Used on · [Family Income Benefit, Life Cover Paying a Monthly Income](https://mortgagelane.com/insurance/family-income-benefit) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgages With Decreasing Profits, Self-Employed Income Falls](https://mortgagelane.com/mortgages/mortgages-with-decreasing-profits) · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · [Retained Profits Mortgages, Director Cash and Reserves Checks](https://mortgagelane.com/mortgages/retained-profits-mortgages) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Buy to Let Mortgage Guide: detailed guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/guides-buy-to-let-mortgage-guide-details) · [Buy to let mortgage for self-employed borrowers](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/self-employed-borrowers) · [Contractor Mortgages](https://mortgagelane.com/mortgages/contractor-mortgages) · [Country House Mortgages \| Land, Listed & Rural Homes](https://mortgagelane.com/mortgages/country-house-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · and 21 more - [Self-invested personal pension (SIPP)](https://mortgagelane.com/definitions/5#def-self-invested-personal-pension)Commercial — A personal pension in which the member chooses the investments, run by an FCA-authorised operator, which can hold commercial property and borrow up to 50% of the member's fund towards it.Self-invested personal pension (SIPP): Full definition · used on 7 pagesA SIPP is a personal pension scheme, registered with HMRC, in which the member directs how the money is invested. The firm that establishes and operates it must be authorised by the [Financial Conduct Authority](https://mortgagelane.com/definitions/2#def-financial-conduct-authority), whatever assets it holds, and a property bought by a SIPP is held in the name of its trustee, usually a company connected with the provider.Where the provider allows it, a SIPP can buy commercial property and let it, including to the member's own business at a market rent. Its borrowing is limited to 50% of the member's arrangement, measured immediately before the loan, and a loan to the trustee is a [commercial mortgage](https://mortgagelane.com/definitions#def-commercial-mortgage). A SIPP has no sponsoring employer, so it cannot lend to the member or to a business connected with them, and residential property is [taxable property](https://mortgagelane.com/definitions/5#def-taxable-property) for it. [FCA Handbook, PERG 12](https://handbook.fca.org.uk/handbook/perg12). — Used on · [SSAS and SIPP Mortgages, Pension Commercial Property Loans](https://mortgagelane.com/mortgages/ssas-sipp-mortgages) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Is it worth buying commercial property?](https://mortgagelane.com/guides/commercial-mortgages/is-it-worth-buying-commercial-property) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) - [Semi-commercial mortgage](https://mortgagelane.com/definitions/5#def-semi-commercial-mortgage)Commercial — A mortgage secured against property containing both residential and commercial accommodation, such as a shop with a flat above.Semi-commercial mortgage: Full definition · used on 30 pagesA mortgage secured against property containing both residential and commercial accommodation, such as a shop with a flat above.The lender considers the uses, leases and income from each part, as well as the property’s title and valuation. The balance of residential and commercial use affects which products are suitable. — Used on · [Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide) · [Commercial Buy to Let Mortgages](https://mortgagelane.com/insights/commercial-buy-to-let-mortgages) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Commercial Mortgages England](https://mortgagelane.com/guides/commercial-mortgages/england) · [Equestrian land mortgage](https://mortgagelane.com/guides/commercial-mortgage-guide/equestrian-land-mortgage) · [Expat Mortgages](https://mortgagelane.com/specialists/expat-mortgages) · [How to Secure the Best Semi-Commercial Mortgage Rates](https://mortgagelane.com/insights/how-to-secure-the-best-semi-commercial-mortgage-rates) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Portfolio Mortgages, Portfolio Landlord Rules and Stress Tests](https://mortgagelane.com/mortgages/property-portfolio-mortgages) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) · [Semi Commercial Mortgages](https://mortgagelane.com/mortgages/semi-commercial-mortgage) · and 18 more - [Senior debt](https://mortgagelane.com/definitions/5#def-senior-debt)Development finance — Borrowing that ranks ahead of specified junior debt for repayment under the applicable security and creditor arrangements.Senior debt: Full definition · used on 15 pagesBorrowing that ranks ahead of specified junior debt for repayment under the applicable security and creditor arrangements.In property finance it is commonly secured by a first charge. Priority does not guarantee that sale proceeds will cover the balance, and enforcement costs or other legal claims can affect recoveries. — Used on · [Joint Venture Development Finance](https://mortgagelane.com/short-term-finance/joint-venture-development-finance) · [Mezzanine Finance](https://mortgagelane.com/short-term-finance/mezzanine-finance) · [Property Development Finance](https://mortgagelane.com/short-term-finance/property-development-finance) · [Senior debt falling short](https://mortgagelane.com/guides/mezzanine-finance/senior-debt-falling-short) · [Additional units or planning permission](https://mortgagelane.com/guides/mezzanine-finance/additional-units-or-planning-permission) · [Development Exit Finance](https://mortgagelane.com/short-term-finance/development-exit-finance) · [Development Finance For First Time Developers](https://mortgagelane.com/insights/development-finance-first-time-developers) · [Is mezzanine financing risky?](https://mortgagelane.com/guides/mezzanine-finance/is-mezzanine-financing-risky) · [Mezzanine Finance: detailed guide](https://mortgagelane.com/guides/mortgages-mezzanine-finance-details) · [Over budget build costs](https://mortgagelane.com/guides/mezzanine-finance/over-budget-build-costs) · [What are the disadvantages of mezzanine financing?](https://mortgagelane.com/guides/mezzanine-finance/what-are-the-disadvantages-of-mezzanine-financing) · [What is Mezzanine development finance?](https://mortgagelane.com/guides/mezzanine-finance/what-is-mezzanine-development-finance) · and 3 more - [Service charge](https://mortgagelane.com/definitions/5#def-service-charge)Planning and tenure — A variable amount a leaseholder pays the landlord, on top of or as part of the rent, towards the costs of services, repairs, maintenance, improvements, insurance and management of the building.Service charge: Full definition · used on 25 pagesIn England and Wales the definition is in section 18 of the Landlord and Tenant Act 1985: the charge must vary, in whole or part, with the landlord's relevant costs. The lease sets out what can be charged and how it is organised.Service charges count towards the cost of owning a flat. Lenders include them in the affordability assessment on [shared ownership](https://mortgagelane.com/definitions/5#def-shared-ownership), and some lenders ask the valuer to confirm the charges are not so onerous that they affect the flat's marketability. — Used on · [Buildings and Contents Insurance, Home Cover for Mortgages](https://mortgagelane.com/insurance/buildings-and-contents-insurance) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Mortgage for a Leasehold Flat](https://mortgagelane.com/mortgages/mortgage-for-leasehold-flat) · [Mortgage on an Ex-Council Flat](https://mortgagelane.com/mortgages/mortgage-on-an-ex-council-flat) · [85% LTV Mortgages](https://mortgagelane.com/mortgages/85-ltv-mortgages) · [90% LTV Mortgages](https://mortgagelane.com/mortgages/90-ltv-mortgages) · [Buy to Let Mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Declined Mortgages: detailed guide](https://mortgagelane.com/guides/insights-declined-mortgages-details) · [Ex Local Authority Mortgage](https://mortgagelane.com/insights/ex-local-authority-mortgage) · [Excellent credit score but refused mortgage](https://mortgagelane.com/guides/declined-mortgages/excellent-credit-score-but-refused-mortgage) · [Expat Holiday Let Mortgages](https://mortgagelane.com/guides/expat-mortgage-guide/expat-holiday-let-mortgages) · and 13 more - [Serviced accommodation mortgage](https://mortgagelane.com/definitions/5#def-serviced-accommodation-mortgage)Specialist lending — Finance for property offered for short stays with services such as cleaning, rather than occupied under a conventional residential letting.Serviced accommodation mortgage: Full definition · used on 45 pagesFinance for property offered for short stays with services such as cleaning, rather than occupied under a conventional residential letting.The actual use determines whether a holiday-let, specialist buy-to-let or commercial facility is appropriate. Planning permission, operating arrangements and lender consent must support that use. — Used on · [Campsite Mortgage](https://mortgagelane.com/mortgages/campsite-mortgages) · [Commercial Buy to Let Mortgages](https://mortgagelane.com/insights/commercial-buy-to-let-mortgages) · [Expat Mortgage Guide](https://mortgagelane.com/guides/expat-mortgage-guide) · [Expat Mortgages for Serviced Accommodation](https://mortgagelane.com/guides/expat-mortgage-guide/serviced-accommodation) · [Mortgages for Foreign Nationals](https://mortgagelane.com/specialists/mortgages-for-foreign-nationals) · [Serviced Accommodation Mortgage](https://mortgagelane.com/guides/commercial-buy-to-let-mortgages/serviced-accommodation-mortgage) · [Serviced Accommodation Mortgage](https://mortgagelane.com/insights/serviced-accommodation-mortgage) · [Serviced Accommodation mortgage for foreign nationals](https://mortgagelane.com/guides/mortgages-for-foreign-nationals/serviced-accommodation-mortgage-for-foreign-nationals) · [Serviced Apartment Mortgages](https://mortgagelane.com/insights/serviced-apartment-mortgage) · [Airbnb Mortgages](https://mortgagelane.com/insights/airbnb-mortgages) · [Best UK mortgage for expats in Dubai](https://mortgagelane.com/guides/expat-mortgage-guide/best-uk-mortgage-for-expats-in-dubai) · [Business bridging finance](https://mortgagelane.com/guides/bridging-loan-guide/business-bridging-finance) · and 33 more - [Serviced interest](https://mortgagelane.com/definitions/5#def-serviced-interest)Bridging finance — Interest paid during the loan term rather than retained from the advance or added to the balance.Serviced interest: Full definition · used on 27 pagesInterest paid during the loan term rather than retained from the advance or added to the balance.For a bridging loan, interest may be paid monthly while the capital remains due at exit. The borrower needs sufficient cash flow; total cost depends on the rate, fees, amount and duration. — Used on · [Bridging Loans: How Much Can I Borrow? \| Gross vs Net](https://mortgagelane.com/short-term-finance/how-much-can-i-borrow) · [How long does it take to pay off a 50k mortgage?](https://mortgagelane.com/guides/mortgage-for-50k-salary/how-long-does-it-take-to-pay-off-a-50k-mortgage) · [How much Is a £50,000 mortgage over 15 Years?](https://mortgagelane.com/guides/mortgage-for-50k-salary/how-much-is-a-50-000-mortgage-over-15-years) · [Mortgage for 50k Salary](https://mortgagelane.com/insights/mortgage-for-50k-salary) · [Non Status Bridging Loans](https://mortgagelane.com/insights/non-status-bridging-loans) · [Re-Bridging Loans, What Is Re-Bridging and Bridging Extensions](https://mortgagelane.com/short-term-finance/re-bridging-loans) · [Repaying Interest With Bridging Loans](https://mortgagelane.com/insights/how-to-repay-interest-with-bridging-finance) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) · [Serviced Interest](https://mortgagelane.com/guides/non-status-bridging-loans/serviced-interest) · [Bridging Loan Cardiff](https://mortgagelane.com/insights/cardiff-bridging-loans) · [Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · and 15 more - [Shared ownership](https://mortgagelane.com/definitions/5#def-shared-ownership)Residential — A scheme where the buyer purchases a share of a property and pays rent to the landlord on the share they do not own. The mortgage is secured on the share purchased, not on the whole property.Shared ownership: Full definition · used on 237 pagesUnder shared ownership a buyer purchases a share of a home, usually from a housing association, and pays rent on the remainder. The deposit and the mortgage relate to the share alone, which is what brings the purchase within reach.Affordability is assessed on the mortgage payment, the rent and the service charge together, so a larger share is not always the more affordable option.Buying further shares is called [staircasing](https://mortgagelane.com/definitions/5#def-staircasing). Larger shares are priced on a RICS valuation at the time; on leases that allow small 1% shares, those are priced from the original price adjusted by the House Price Index. — Used on · [Buy to Let Mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [Freehold flat mortgage Scotland](https://mortgagelane.com/guides/buy-to-let-mortgage-scotland/freehold-flat-mortgage-scotland) · [How much deposit do I need to buy a house as a first time buyer?](https://mortgagelane.com/guides/mortgage-for-50k-salary/how-much-deposit-do-i-need-to-buy-a-house-as-a-first-time-buyer) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgage for 50k Salary](https://mortgagelane.com/insights/mortgage-for-50k-salary) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Mortgages in Northern Ireland, Calculator and Co-Ownership](https://mortgagelane.com/mortgages/mortgages-northern-ireland) · [Mortgages with Defaults, Lender Tiers and Secured Defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults) · [Mortgages with Missed Payments, Late Payments and Arrears](https://mortgagelane.com/mortgages/mortgages-with-missed-payments) · and 225 more - [Shareholder protection](https://mortgagelane.com/definitions/5#def-shareholder-protection)Insurance — Life, or life and critical illness, cover that provides money for the remaining owners of a business to buy the shares of an owner who dies or becomes seriously ill, usually with a cross-option agreement.Shareholder protection: Full definition · used on 1 pageShareholder protection gives the remaining owners of a company the money to buy a deceased or seriously ill owner's shares, so the shares pass to the people running the business and the estate is paid in cash. Partnerships and limited liability partnerships use the same arrangement, often called partnership protection, for a partner's share. The policies are usually paired with a cross-option agreement, under which the survivors have an option to buy and the estate an option to sell.HMRC's Inheritance Tax manual notes that such agreements may be funded by life policies, and that a binding agreement requiring the estate to sell and the survivors to buy can stop the shares qualifying for business relief, while an option does not ([GOV.UK: HMRC Inheritance Tax Manual, IHTM25292](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm25292)). It differs from [key person insurance](https://mortgagelane.com/definitions/3#def-key-person-insurance), which pays the business. A solicitor draws up the agreement and an accountant confirms the tax effects. — Used on · [Key Person Insurance, Keyman Cover and Tax Treatment](https://mortgagelane.com/insurance/key-person-insurance) - [Sharia-compliant property finance](https://mortgagelane.com/definitions/5#def-sharia-compliant-property-finance)Specialist lending — Property finance structured to comply with Islamic principles, using an arrangement such as joint ownership, leasing or a sale with an agreed profit instead of a conventional interest-bearing loan.Sharia-compliant property finance: Full definition · used on 3 pagesProperty finance structured to comply with Islamic principles, using an arrangement such as joint ownership, leasing or a sale with an agreed profit instead of a conventional interest-bearing loan.The payment and ownership arrangements depend on the contract. Finance for a rental investment must permit that use; compare the total costs, purchase obligations and exit terms.Sources: [MoneyHelper: Islamic mortgages](https://www.moneyhelper.org.uk/en/homes/buying-a-home/sharia-compliant-home-purchase-plans). — Used on · [Sharia Buy to Let Mortgages](https://mortgagelane.com/insights/sharia-buy-to-let-mortgages) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) - [SIC code](https://mortgagelane.com/definitions/5#def-sic-code)Buy-to-let — A Standard Industrial Classification code that a company gives Companies House to describe the nature of its business.SIC code: Full definition · used on 6 pagesCompanies House uses a condensed list of the Office for National Statistics codes, and only codes on that list can be used when filing. A company set up to own buy-to-let property, a [special purpose vehicle](https://mortgagelane.com/definitions/5#def-spv-mortgage), registers codes for letting or managing property, and lenders to such companies may check them. [Companies House: SIC codes](https://www.gov.uk/government/publications/standard-industrial-classification-of-economic-activities-sic). — Used on · [Buy to Let Mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) · [Buy to Let Mortgage Scotland: detailed guide](https://mortgagelane.com/guides/insights-buy-to-let-mortgage-scotland-details) · [Buy to Let Mortgages](https://mortgagelane.com/mortgages/buy-to-let-mortgages) · [Buy to Let Mortgages for Limited Companies in Scotland](https://mortgagelane.com/guides/buy-to-let-mortgage-scotland/limited-companies-in-scotland) · [Investment Property Mortgages](https://mortgagelane.com/mortgages/investment-property-mortgages) · [SPV Mortgage Rates](https://mortgagelane.com/insights/spv-mortgage-rates) - [Single person mortgage](https://mortgagelane.com/definitions/5#def-single-person-mortgage)Residential — A residential mortgage taken out by one borrower and assessed on that person's own income, commitments and credit history.Single person mortgage: Full definition · used on 4 pagesA single person mortgage is an ordinary residential mortgage with one named borrower. There is no separate product: the lender applies its usual affordability assessment, interest rate stress test and credit checks, using one income and one set of commitments. Because one income usually supports a smaller loan than two, the deposit, the lender's [income multiple](https://mortgagelane.com/definitions/3#def-loan-to-income) and schemes such as [shared ownership](https://mortgagelane.com/definitions/5#def-shared-ownership) decide how far the loan reaches.A married person or civil partner can take one in their sole name, and the partner who will live in the home is usually asked to sign an occupier's consent. A [joint mortgage](https://mortgagelane.com/definitions/3#def-joint-mortgage) can become a single person mortgage through a [transfer of equity](https://mortgagelane.com/definitions/5#def-transfer-of-equity) or a [remortgage](https://mortgagelane.com/definitions/4#def-remortgage), with the remaining borrower's income assessed alone. A [joint borrower sole proprietor](https://mortgagelane.com/definitions/3#def-joint-borrower-sole-proprietor) mortgage is a different arrangement, with one owner and more than one borrower. — Used on · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · [Single Person Mortgages, Buying Alone and Applying Alone](https://mortgagelane.com/mortgages/single-person-mortgages) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Mortgage Calculators](https://mortgagelane.com/calculators) - [Six-month rule (remortgaging)](https://mortgagelane.com/definitions/5#def-six-month-rule)Lending and affordability — A lender policy of not remortgaging a property, or not lending on a new valuation, until the borrower has owned it for at least six months. It is lender and conveyancing practice, not law, and lenders apply it differently.Six-month rule (remortgaging): Full definition · used on 6 pagesThe six-month rule is the name given to a minimum ownership period before a remortgage. A lender that applies it will not refinance a property the borrower has owned for less than six months, or will lend only on the price paid, sometimes with the documented cost of any works added, until the six months have passed. Some lenders want 12 months, some lend from day one, and common exceptions include inherited property and a remortgage that repays a [bridging loan](https://mortgagelane.com/definitions#def-bridging-loan).No statute or FCA rule sets the period. It comes from lenders' criteria and from their instructions to conveyancers: in England and Wales the UK Finance Mortgage Lenders' Handbook asks the conveyancer to report a seller who has owned the property for less than six months ([UK Finance Mortgage Lenders' Handbook](https://lendershandbook.ukfinance.org.uk/)), and each lender adds its own requirements. The aim is to stop quick resales at inflated values. On a refurbish and refinance project the rule decides how long the bridge has to run before the new [valuation](https://mortgagelane.com/definitions/3#def-mortgage-valuation) can be used, so it is part of the [exit strategy](https://mortgagelane.com/definitions/2#def-exit-strategy). — Used on · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [Re-Bridging Loans, What Is Re-Bridging and Bridging Extensions](https://mortgagelane.com/short-term-finance/re-bridging-loans) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) - [Small self-administered scheme (SSAS)](https://mortgagelane.com/definitions/5#def-small-self-administered-scheme)Commercial — A pension scheme set up by a company for a small number of members, usually its directors, who act as its trustees and can use it to buy commercial property, borrow towards it and lend to the company within HMRC's rules.Small self-administered scheme (SSAS): Full definition · used on 6 pagesA SSAS is an occupational pension scheme registered with HMRC under the Finance Act 2004. HMRC describes it as available for up to 12 members, and it is often used by directors and family businesses, with the members as trustees deciding how it invests. The name is often misspelt SASS.A SSAS can buy commercial property, including the premises of the sponsoring company, and let it at a market rent. It can borrow up to 50% of its net assets, measured immediately before the borrowing, and a loan to its trustees for that purpose is a [commercial mortgage](https://mortgagelane.com/definitions#def-commercial-mortgage). It can also make an [authorised employer loan](https://mortgagelane.com/definitions#def-authorised-employer-loan) to the sponsoring company. Residential property is [taxable property](https://mortgagelane.com/definitions/5#def-taxable-property) for a SSAS, and every deal with a member or the company has to be at market value. From 6 April 2027 most unused pension funds, including property held in a SSAS, count towards the member's estate for [Inheritance Tax](https://mortgagelane.com/definitions/3#def-inheritance-tax). [HMRC Inheritance Tax Manual, IHTM17022](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm17022). — Used on · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [SSAS and SIPP Mortgages, Pension Commercial Property Loans](https://mortgagelane.com/mortgages/ssas-sipp-mortgages) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) - [Social housing mortgage](https://mortgagelane.com/definitions/5#def-social-housing-mortgage)Specialist lending — Property finance for housing let or leased for social or supported housing use.Social housing mortgage: Full definition · used on 36 pagesProperty finance for housing let or leased for social or supported housing use.This is a description of the property’s use, not a guarantee of government-backed rent. The lender examines the provider, lease, occupancy arrangements, property standards and the party responsible for payments. — Used on · [Assisted Living Mortgages](https://mortgagelane.com/guides/social-housing-mortgages/assisted-living-mortgages) · [Buy to Let Mortgages](https://mortgagelane.com/mortgages/buy-to-let-mortgages) · [Clear springs ready homes buy to let mortgages](https://mortgagelane.com/guides/social-housing-mortgages/clear-springs-ready-homes-buy-to-let-mortgages) · [Commercial Buy to Let Mortgages](https://mortgagelane.com/insights/commercial-buy-to-let-mortgages) · [DSS Tenant Mortgages](https://mortgagelane.com/guides/social-housing-mortgages/dss-tenant-mortgages) · [Domestic abuse refuge housing](https://mortgagelane.com/guides/social-housing-mortgages/domestic-abuse-refuge-housing) · [Emergency Hostels and Shelters](https://mortgagelane.com/guides/social-housing-mortgages/emergency-hostels-and-shelters) · [Emergency accommodation mortgages](https://mortgagelane.com/guides/social-housing-mortgages/emergency-accommodation-mortgages) · [Expat Mortgage Guide](https://mortgagelane.com/guides/expat-mortgage-guide) · [Expat Mortgages](https://mortgagelane.com/specialists/expat-mortgages) · [Expat Mortgages for Social Housing](https://mortgagelane.com/guides/expat-mortgage-guide/social-housing) · [Mortgages for Foreign Nationals](https://mortgagelane.com/specialists/mortgages-for-foreign-nationals) · and 24 more - [Spanish mortgage](https://mortgagelane.com/definitions/5#def-spanish-mortgage)Specialist lending — A loan secured against property in Spain, arranged under Spanish law and lender criteria, with its own deposit, tax and completion requirements for a non-resident buyer.Spanish mortgage: Full definition · used on 7 pagesA Spanish mortgage is a loan secured against a property in Spain, used to buy, refinance, or release equity from Spanish real estate. Spanish mortgages are granted by Spanish banks and international lenders operating in Spain, regulated under Spanish law rather than by the United Kingdom Financial Conduct Authority (FCA). Non-residents, including buyers from the United Kingdom, the United States, Germany, France, Italy, and Sweden, can obtain a Spanish mortgage, although lenders typically offer non-residents lower maximum loan-to-value limits than Spanish residents. — Used on · [Non-resident mortgages in Spain](https://mortgagelane.com/guides/spanish-mortgages/non-resident-mortgages-in-spain) · [Spanish Mortgages](https://mortgagelane.com/insights/spanish-mortgages) · [Spanish Mortgages: detailed guide](https://mortgagelane.com/guides/insights-spanish-mortgages-details) · [Spanish mortgages for UK buyers](https://mortgagelane.com/guides/spanish-mortgages/uk-buyers) · [Expat Mortgage Guide](https://mortgagelane.com/guides/expat-mortgage-guide) · [Mortgages for Foreign Nationals](https://mortgagelane.com/specialists/mortgages-for-foreign-nationals) · [Property and borrowing topics](https://mortgagelane.com/guides/property-and-borrowing-topics) - [Specialist lending](https://mortgagelane.com/definitions/5#def-specialist-lending)Specialist lending — Lending assessed case by case on the property, the borrower or the income, rather than by the standard scorecard a mainstream lender applies.Specialist lending: Full definition · used on 85 pagesLending assessed case by case on the property, the borrower or the income, rather than by the standard scorecard a mainstream lender applies.A case is usually specialist because of something mainstream criteria cannot accommodate: a non-standard construction, a trading business as security, income from several sources or from overseas, an ownership structure, or a credit history that automated scoring declines.Underwriting is generally manual and pricing is higher, because the lender is pricing for work as well as for risk that a scorecard cannot measure. — Used on · [Bad Credit Bridging Loans \| Adverse Credit Accepted](https://mortgagelane.com/short-term-finance/bad-credit-bridging-loans) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [Expat Mortgages](https://mortgagelane.com/specialists/expat-mortgages) · [Heritage property mortgages for expats](https://mortgagelane.com/guides/expat-mortgages/heritage-property-mortgages-for-expats) · [How do I know what property restrictions come with a smallholding?](https://mortgagelane.com/guides/smallholding-mortgages/how-do-i-know-what-property-restrictions-come-with-a-smallholding) · [IVA Mortgages, Getting a Mortgage With or After an IVA](https://mortgagelane.com/mortgages/iva-mortgages) · [Low Credit Score Mortgages, What Lenders Really See](https://mortgagelane.com/mortgages/low-credit-score-mortgages) · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · and 73 more - [Spray foam insulation](https://mortgagelane.com/definitions/5#def-spray-foam-insulation)Valuation — Polyurethane foam sprayed onto the underside of a roof, or onto walls or floors, as insulation. It can hide the roof timbers from inspection and trap moisture, so valuers often ask for a specialist report and lenders commonly decline it or refer the case.Spray foam insulation: Full definition · used on 9 pagesSprayed under a roof it creates a warm roof. If it covers the timber roof structure, the timbers cannot be fully seen or inspected; badly installed foam can cause condensation and damp, and a roof leak behind it can go unnoticed and lead to rotting timber. RICS says spray foam can affect a surveyor's opinion of value and that the surveyor may ask for an independent specialist report.Lender policies range from declining any property where spray foam has been used, even after removal, to accepting it with installation evidence such as a suitability report, a condensation risk assessment, product certification and a transferable [insurance-backed warranty](https://mortgagelane.com/definitions/3#def-insurance-backed-guarantee). Owners are advised to keep the installation documents. See [spray foam insulation mortgages](https://mortgagelane.com/insights/spray-foam-insulation-mortgages). — Used on · [Mortgage declined after survey](https://mortgagelane.com/guides/declined-mortgages/mortgage-declined-after-survey) · [Non-Standard Construction Mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages) · [Remortgage for Home Improvements, Extensions and Lofts](https://mortgagelane.com/mortgages/remortgage-for-home-improvements) · [Spray Foam Insulation Mortgages](https://mortgagelane.com/insights/spray-foam-insulation-mortgages) · [Barn Conversion Mortgages](https://mortgagelane.com/insights/barn-conversion-mortgages) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Declined Mortgages: detailed guide](https://mortgagelane.com/guides/insights-declined-mortgages-details) · [Mortgage refused spray foam](https://mortgagelane.com/guides/declined-mortgages/mortgage-refused-spray-foam) · [Spray foam roof insulation mortgage declinations](https://mortgagelane.com/guides/declined-mortgages/spray-foam-roof-insulation-mortgage-declinations) - [SPV mortgage](https://mortgagelane.com/definitions/5#def-spv-mortgage)Buy-to-let — A mortgage made to a special purpose vehicle, usually a company established to own and let property.SPV mortgage: Full definition · used on 58 pagesA mortgage made to a special purpose vehicle, usually a company established to own and let property.The lender assesses the company, its owners, the property and the proposed letting. A personal guarantee can make directors personally liable under its terms. Company ownership does not itself establish a tax saving or a particular mortgage rate. — Used on · [85% LTV Mortgages](https://mortgagelane.com/mortgages/85-ltv-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Buy to Let Mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) · [Buy to Let Mortgages for Limited Companies in Scotland](https://mortgagelane.com/guides/buy-to-let-mortgage-scotland/limited-companies-in-scotland) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Hotel Mortgages](https://mortgagelane.com/mortgages/hotel-mortgages) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Portfolio Mortgages, Portfolio Landlord Rules and Stress Tests](https://mortgagelane.com/mortgages/property-portfolio-mortgages) · [Remortgage After a Bridging Loan, Exits and the Six-Month Rule](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan) · [Retained Profits Mortgages, Director Cash and Reserves Checks](https://mortgagelane.com/mortgages/retained-profits-mortgages) · [SPV Mortgage Rates](https://mortgagelane.com/insights/spv-mortgage-rates) · and 46 more - [Staircasing](https://mortgagelane.com/definitions/5#def-staircasing)Residential — Buying further shares in a shared ownership home. Each purchase reduces the share the landlord owns, and so the rent paid on it.Staircasing: Full definition · used on 6 pagesLarger shares are priced on a valuation by a RICS-registered surveyor at the time of purchase. On homes bought on or after 1 April 2021 the lease may allow small 1% shares each year for a period, priced from the original price adjusted by the House Price Index. The minimum step depends on the lease. [GOV.UK: buying more shares (staircasing)](https://www.gov.uk/shared-ownership-scheme/buying-more-shares-staircasing). See [shared ownership mortgages](https://mortgagelane.com/mortgages/shared-ownership-mortgages). — Used on · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgages in Northern Ireland, Calculator and Co-Ownership](https://mortgagelane.com/mortgages/mortgages-northern-ireland) · [Section 106 Mortgages, Discounted and Restricted Homes](https://mortgagelane.com/mortgages/section-106-mortgages) · [Shared Ownership Mortgages](https://mortgagelane.com/mortgages/shared-ownership-mortgages) · [Shared ownership mortgages](https://mortgagelane.com/guides/residential/shared-ownership-mortgages) · [The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) - [Stamp Duty Land Tax (SDLT)](https://mortgagelane.com/definitions/5#def-stamp-duty-land-tax)Fees and charges — The tax paid on buying property or land over a certain price in England and Northern Ireland. Different rates apply to first-time buyers, to buyers of an additional residential property and to non-UK residents.Stamp Duty Land Tax (SDLT): Full definition · used on 49 pagesStamp Duty Land Tax is charged in bands on the price of residential property bought in England or Northern Ireland, and is paid to HMRC. As at October 2026 the standard residential bands are nil up to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above. A buyer who will also own another residential property worth £40,000 or more usually pays the higher rates for additional dwellings, which since 31 October 2024 have been 5 percentage points above each standard band, on a purchase of £40,000 or more. Married couples and civil partners are treated as buying together, and if any buyer must pay the higher rates the whole purchase does.The higher rates for additional dwellings apply where the property will not be the buyer's only residential property and the buyer has not sold or given away their previous main home, and can apply even if the buyer will live in it. First-time buyers can claim relief. Because a supporting borrower on a [joint borrower sole proprietor mortgage](https://mortgagelane.com/definitions/3#def-joint-borrower-sole-proprietor) is not on the title, their own home does not bring the purchase into the higher rates.Scotland has [Land and Buildings Transaction Tax](https://mortgagelane.com/definitions/3#def-land-and-buildings-transaction-tax) and Wales has [Land Transaction Tax](https://mortgagelane.com/definitions/3#def-land-transaction-tax) instead. Rates and thresholds are on [GOV.UK: Stamp Duty Land Tax](https://www.gov.uk/stamp-duty-land-tax). — Used on · [85% LTV Mortgages](https://mortgagelane.com/mortgages/85-ltv-mortgages) · [90% LTV Mortgages](https://mortgagelane.com/mortgages/90-ltv-mortgages) · [95% Mortgages](https://mortgagelane.com/mortgages/95-percent-mortgages) · [BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Bridging Loans for Barn Conversions \| Class Q & Planning](https://mortgagelane.com/short-term-finance/bridging-finance-for-barn-conversions) · [Bridging Loans for Flipping Houses \| Buy, Refurb, Sell](https://mortgagelane.com/short-term-finance/bridging-finance-for-flipping-houses) · [Buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [Country House Mortgages \| Land, Listed & Rural Homes](https://mortgagelane.com/mortgages/country-house-mortgages) · [Family Help Mortgages](https://mortgagelane.com/mortgages/family-help-mortgages) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · and 37 more - [Standard security](https://mortgagelane.com/definitions/5#def-standard-security)Lending and affordability — The deed that secures a loan over land or buildings in Scotland, the Scots law equivalent of a mortgage or legal charge. It is registered in the Land Register of Scotland.Standard security: Full definition · used on 8 pagesUnder the Conveyancing and Feudal Reform (Scotland) Act 1970, a security for a debt over land in Scotland can only be created as a standard security, and it is granted and registered in the Land Register of Scotland, kept by Registers of Scotland ([legislation.gov.uk: 1970 Act, section 9](https://www.legislation.gov.uk/ukpga/1970/35/section/9)). A home buyer grants one to the mortgage lender at settlement, on the date of entry.A home can carry more than one standard security. Under shared equity schemes such as [LIFT](https://mortgagelane.com/definitions/3#def-lift-scheme) the Scottish Government's share is protected by its own standard security, alongside the lender's. — Used on · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Property Development Finance in Scotland](https://mortgagelane.com/short-term-finance/property-development-finance-scotland) · [Re-Bridging Loans, What Is Re-Bridging and Bridging Extensions](https://mortgagelane.com/short-term-finance/re-bridging-loans) · [Revolving Credit Mortgage, Property Revolving Credit Facility](https://mortgagelane.com/mortgages/revolving-credit-mortgages) - [Standard variable rate (SVR)](https://mortgagelane.com/definitions/5#def-standard-variable-rate)Residential — The rate a lender applies once an initial fixed or tracker period ends. The lender sets it and can change it at will, and it is usually the most expensive rate on the product range.Standard variable rate (SVR): Full definition · used on 24 pagesThe standard variable rate is the lender's own default rate. Unlike a tracker it is not tied to Bank Rate, and the lender can move it with notice whether or not Bank Rate has changed.A mortgage reverts to it automatically at the end of an initial period, which is why a borrower who does nothing at the end of a fix usually sees the payment rise.There are no early repayment charges on an SVR, so a borrower sitting on one can move at any time. — Used on · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [Fixed Term Mortgages](https://mortgagelane.com/mortgages/fixed-term-mortgages) · [Guernsey Mortgages](https://mortgagelane.com/insights/guernsey-mortgages) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Remortgage with Bad Credit, Product Transfer or Switch](https://mortgagelane.com/mortgages/remortgage-with-bad-credit) · [Remortgaging in Guernsey](https://mortgagelane.com/guides/guernsey-mortgages/remortgaging-in-guernsey) · [Sharia Buy to Let Mortgages](https://mortgagelane.com/insights/sharia-buy-to-let-mortgages) · [Tracker Mortgages](https://mortgagelane.com/mortgages/tracker-mortgages) · [Variable Rate Mortgages](https://mortgagelane.com/mortgages/variable-rate-mortgages) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Buy to Let Mortgage for HMO Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-for-hmo-scotland) · [HELOC: Home Equity Line of Credit in the UK](https://mortgagelane.com/guides/alternatives-to-bridging-loans/heloc) · and 12 more - [Statutory Sick Pay (SSP)](https://mortgagelane.com/definitions/5#def-statutory-sick-pay)Insurance — The legal minimum an employer must pay an eligible employee who is too ill to work, for up to 28 weeks.Statutory Sick Pay (SSP): Full definition · used on 2 pagesStatutory Sick Pay (SSP) is the legal minimum an employer must pay an employee who is too ill to work. For the 2026 to 2027 tax year it is £123.25 a week, or 80% of the employee's average weekly earnings if that is lower, and it is paid for up to 28 weeks ([GOV.UK: rates and thresholds for employers 2026 to 2027](https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027)).Changes made by the Employment Rights Act 2025 took effect on 6 April 2026: the three unpaid waiting days were removed, so SSP is paid from the first day of sickness on a day the employee would normally work, and the Lower Earnings Limit was removed, so employees on low pay qualify ([legislation.gov.uk: Employment Rights Act 2025, section 11](https://www.legislation.gov.uk/ukpga/2025/36/section/11)). The same changes apply in Northern Ireland. Contractual sick pay from the employer counts towards SSP for the same days. SSP is paid only to people classed as employees, so the self-employed cannot get it, and when it ends a person still unable to work may be able to claim Universal Credit or Employment and Support Allowance. See [income protection insurance](https://mortgagelane.com/definitions/3#def-income-protection) and [deferred period](https://mortgagelane.com/definitions/2#def-deferred-period). — Used on · [Critical Illness Declined, Exclusions and Alternatives](https://mortgagelane.com/insurance/critical-illness-declined) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) - [Student loan repayment plan](https://mortgagelane.com/definitions/5#def-student-loan-repayment-plan)Lending and affordability — The plan that sets how a UK student loan is repaid: a percentage of income above a yearly threshold, collected through payroll or Self Assessment, with any balance written off after a set period.Student loan repayment plan: Full definition · used on 10 pagesWhich plan applies depends on which UK student finance body the borrower applied to, the type of course and when it started, wherever they studied ([GOV.UK: which repayment plan you are on](https://www.gov.uk/repaying-your-student-loan/which-repayment-plan-you-are-on)). For 2026/27 the yearly thresholds are £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4 and £25,000 for Plan 5, each repaid at 9% of income above the threshold, and £21,000 for a Postgraduate Loan, repaid at 6% ([GOV.UK: what you pay](https://www.gov.uk/repaying-your-student-loan/what-you-pay)). An employee repays through [PAYE](https://mortgagelane.com/definitions/4#def-pay-as-you-earn), with the deduction worked out each pay period. Someone with more than one of Plans 1, 2, 4 and 5 makes one deduction, at 9% above the lowest threshold, and a Postgraduate Loan is repaid on top.Loans from the Student Loans Company do not appear on credit files. Mortgage lenders see the deduction on the payslip and take it into account in [affordability](https://mortgagelane.com/definitions#def-affordability), although they differ on how. The balance owed does not change what is repaid each month, which depends only on income above the threshold. — Used on · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Mortgages with Missed Payments, Late Payments and Arrears](https://mortgagelane.com/mortgages/mortgages-with-missed-payments) · [Residential Mortgages](https://mortgagelane.com/mortgages/residential-property-mortgages) · [Credit score 999 but refused mortgage](https://mortgagelane.com/guides/declined-mortgages/credit-score-999-but-refused-mortgage) · [Excellent credit score but refused mortgage](https://mortgagelane.com/guides/declined-mortgages/excellent-credit-score-but-refused-mortgage) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Mortgage Calculators](https://mortgagelane.com/calculators) · [The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) - [Sui generis](https://mortgagelane.com/definitions/5#def-sui-generis)Planning and tenure — A use of land or buildings that falls in no planning use class, described as 'of its own kind'. A change of use to or from a sui generis use generally needs a planning application.Sui generis: Full definition · used on 19 pagesArticle 3(6) of the Use Classes Order 1987 lists uses that belong to no class, among them hostels. Other uses are sui generis because no class fits them: in England a house in multiple occupation with more than six residents is outside [Class C3 and Class C4](https://mortgagelane.com/definitions/5#def-use-class), which both stop at six residents.Because a change of use to or from a sui generis use generally needs a planning application, creating a large HMO normally needs planning permission, and an HMO lender checks that the planning position supports the use. [GOV.UK: when planning permission is required](https://www.gov.uk/guidance/when-is-permission-required). — Used on · [Bridging Loans for HMOs \| Buy, Convert & Refinance](https://mortgagelane.com/short-term-finance/bridging-finance-for-hmos) · [Build to Rent Development Finance](https://mortgagelane.com/short-term-finance/build-to-rent-development-finance) · [Buy to Let Mortgage for HMO Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-for-hmo-scotland) · [Commercial Mortgage for Boarding Kennels](https://mortgagelane.com/mortgages/boarding-kennels-mortgages) · [HMO Mortgages for First Time Property Investors](https://mortgagelane.com/insights/hmo-mortgages-for-first-time-property-investors) · [HMO Valuation Based On Rent](https://mortgagelane.com/insights/hmo-valuation-based-on-rent) · [Hotel Development Finance](https://mortgagelane.com/short-term-finance/hotel-development-finance) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [PBSA Finance, Purpose-Built Student Accommodation](https://mortgagelane.com/short-term-finance/pbsa-finance) · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · [Converted MUFB HMO Mortgages](https://mortgagelane.com/mortgages/converted-mufb-hmo-mortgage) · [HMO Mortgages](https://mortgagelane.com/mortgages/hmo-mortgages) · and 7 more - [Support for Mortgage Interest (SMI)](https://mortgagelane.com/definitions/5#def-support-for-mortgage-interest)Residential — A government loan towards the interest on a homeowner's mortgage for people getting Universal Credit, Pension Credit or income-related Employment and Support Allowance, repaid with interest when the home is sold or ownership is transferred.Support for Mortgage Interest (SMI): Full definition · used on 2 pagesSMI stopped being a benefit and became an interest-bearing loan on 6 April 2018. The Department for Work and Pensions pays an amount towards the mortgage interest, normally straight to the lender, worked out at a standard rate on up to £200,000 of the loan, or £100,000 for Pension Credit claimants and people who started claiming another qualifying benefit before January 2009 while below State Pension age.On Universal Credit, payments can start after 3 months in a row on the benefit, and since 3 April 2023 a claimant can get SMI while earning. The loan is secured on the home and repaid, with interest added each year, when the home is sold or ownership is transferred; any part the sale does not cover is written off. SMI does not pay capital repayments, arrears or insurance. Northern Ireland runs its own scheme on the same lines. The rates in force are on [gov.uk: Support for Mortgage Interest](https://www.gov.uk/support-for-mortgage-interest). — Used on · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) - T7 terms - [Taxable property (pension schemes)](https://mortgagelane.com/definitions/5#def-taxable-property)Regulation — Residential property and most tangible moveable assets, which an investment-regulated pension scheme such as a SSAS or SIPP can hold only by paying heavy tax charges.Taxable property (pension schemes): Full definition · used on 2 pagesSchedule 29A to the Finance Act 2004 makes residential property, such as houses, flats, holiday lets and their gardens, and tangible moveable property, such as cars and furniture, taxable property for an investment-regulated pension scheme. If such a scheme acquires it, the member pays an unauthorised payments charge of 40% on the cost, a 15% surcharge can apply, and the scheme administrator pays a scheme sanction charge, generally 15%; income from it (actual, or a deemed 10% of its value if higher) and gains are charged at 40%.Care homes, hospitals, children's homes, prisons, student halls of residence and a whole hotel are not residential property for these rules. A dwelling is also outside the charges if it is lived in by an unconnected employee as a condition of the job, or by an unconnected person in connection with business premises the scheme holds. [HMRC Pensions Tax Manual, PTM125200](https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm125200). — Used on · [SSAS and SIPP Mortgages, Pension Commercial Property Loans](https://mortgagelane.com/mortgages/ssas-sipp-mortgages) · [Regulated Buy to Let Mortgages, Family and Consumer Buy to Let](https://mortgagelane.com/mortgages/regulated-buy-to-let-mortgages) - [Time to Pay arrangement (HMRC payment plan)](https://mortgagelane.com/definitions/5#def-time-to-pay-arrangement)Lending and affordability — A payment plan agreed with HMRC to pay a tax bill in instalments when it cannot be paid in full.Time to Pay arrangement (HMRC payment plan): Full definition · used on 2 pagesA Time to Pay arrangement is a payment plan agreed with [HM Revenue and Customs (HMRC)](https://mortgagelane.com/definitions/2#def-hm-revenue-and-customs) to pay a tax bill in instalments when it cannot be paid in full. HMRC checks that the plan is affordable, and if a plan cannot be agreed it asks for the amount owed in full. Interest is charged on what is outstanding, so paying more quickly costs less in total ([GOV.UK: if you cannot pay your tax bill on time](https://www.gov.uk/difficulties-paying-hmrc)).For a mortgage, a payment plan is a commitment the lender reads alongside other debts, and whether a lender accepts one, and on what terms, varies by lender. A plan spreads the bill without adding it to the mortgage, while remortgaging to pay the bill instead secures it on the home over the mortgage term. — Used on · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [One Year Self-Employed Mortgages, 1 Year's Accounts](https://mortgagelane.com/mortgages/one-year-self-employed-mortgages) - [Title split](https://mortgagelane.com/definitions/5#def-title-split)Planning and tenure — Creating separate property titles or leases so parts of a property can be owned, sold or financed separately.Title split: Full definition · used on 329 pagesA block of flats can remain on one freehold while separate long leases are created for individual flats. A title split does not replace planning permission or building regulations approval, and any existing lender must agree to changes affecting its security.[Read how this affects the finance](https://mortgagelane.com/short-term-finance/bridging-loan-for-an-mufb). — Used on · [Bridging Loan for an MUFB \| Multi-Unit Freehold Blocks](https://mortgagelane.com/short-term-finance/bridging-loan-for-an-mufb) · [12-Unit MUFB, West Midlands](https://mortgagelane.com/case-studies/mufb-purchase-west-midlands) · [A Guide to Investing in New Builds and Conversions](https://mortgagelane.com/insights/investing-in-new-builds-and-conversions) · [Accidental landlord mortgage](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/accidental-landlord-mortgage) · [Acreage mortgage](https://mortgagelane.com/guides/rural-mortgages/acreage-mortgage) · [Agricultural Bridging Loans](https://mortgagelane.com/insights/agricultural-bridging-loan) · [Agricultural Bridging Loans: detailed guide](https://mortgagelane.com/guides/insights-agricultural-bridging-loan-details) · [Agricultural bridging loan](https://mortgagelane.com/guides/bridging-loan-guide/agricultural-bridging-loan) · [Agricultural bridging loan](https://mortgagelane.com/guides/bridging-loans/agricultural-bridging-loan) · [Agricultural land mortgage](https://mortgagelane.com/guides/rural-mortgages/agricultural-land-mortgage) · [Agricultural tie mortgage](https://mortgagelane.com/guides/rural-mortgages/agricultural-tie-mortgage) · [Airbnb Mortgages](https://mortgagelane.com/insights/airbnb-mortgages) · and 317 more - [Top slicing](https://mortgagelane.com/definitions/5#def-top-slicing)Buy-to-let — Using surplus personal income to cover the shortfall where rent alone does not meet the lender’s stress test. Not every lender offers it, and those that do set their own limits.Top slicing: Full definition · used on 19 pagesTop slicing lets a borrower use surplus personal income to bridge the gap where the rent does not quite meet the interest coverage requirement. The lender assesses the borrower’s income and outgoings in the way a residential lender would, and applies the surplus to the shortfall.It is common on lower yielding property, particularly in the south of England, where capital values outrun rents. It is not universal. Lenders that allow it set their own minimum income, their own maximum reliance on personal income, and their own view of which income counts. — Used on · [90% LTV Mortgages](https://mortgagelane.com/mortgages/90-ltv-mortgages) · [Buy to Let Mortgages](https://mortgagelane.com/mortgages/buy-to-let-mortgages) · [Buy to Let and Commercial Mortgages Declined on Affordability](https://mortgagelane.com/insights/what-to-do-if-your-mortgage-is-declined-on-affordability) · [CIS Mortgages, Construction Industry Scheme](https://mortgagelane.com/mortgages/cis-mortgages) · [Contractor Mortgages](https://mortgagelane.com/mortgages/contractor-mortgages) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [IT Contractor Mortgages](https://mortgagelane.com/mortgages/it-contractor-mortgages) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [Single Person Mortgages, Buying Alone and Applying Alone](https://mortgagelane.com/mortgages/single-person-mortgages) · [Top slicing mortgages](https://mortgagelane.com/guides/buy-to-let-mortgages/top-slicing-mortgages) · and 7 more - [Tracker mortgage](https://mortgagelane.com/definitions/5#def-tracker-mortgage)Residential — A mortgage whose rate is a fixed margin above Bank Rate and moves with it. The margin is contractual; the rate underneath it is not.Tracker mortgage: Full definition · used on 23 pagesA tracker mortgage charges Bank Rate plus a set margin, so the payment moves whenever the Bank of England changes Bank Rate. The margin is fixed for the product term.A tracker differs from a standard variable rate, which the lender sets at its own discretion and can move independently of Bank Rate.Some trackers carry a collar, a floor below which the rate will not fall. A tracker is the right product where the borrower can absorb a rise and wants the benefit of a fall. — Used on · [Fixed Term Mortgages](https://mortgagelane.com/mortgages/fixed-term-mortgages) · [Tracker Mortgages](https://mortgagelane.com/mortgages/tracker-mortgages) · [Variable Rate Mortgages](https://mortgagelane.com/mortgages/variable-rate-mortgages) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Buy to let second charge mortgages](https://mortgagelane.com/guides/second-charge-mortgages/buy-to-let-second-charge-mortgages) · [DSS HMO mortgage](https://mortgagelane.com/guides/hmo-mortgages/dss-hmo-mortgage) · [First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) · [First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages) · [Interest Only Residential Mortgages](https://mortgagelane.com/mortgages/interest-only-residential-mortgages) · [Mortgage Calculators](https://mortgagelane.com/calculators) · [Mortgages With Decreasing Profits, Self-Employed Income Falls](https://mortgagelane.com/mortgages/mortgages-with-decreasing-profits) · [Mortgages With No Early Repayment Charge](https://mortgagelane.com/insights/mortgages-with-no-early-repayment-charge) · and 11 more - [Trading history](https://mortgagelane.com/definitions/5#def-trading-history)Lending and affordability — The length of time a self-employed borrower or their business has been trading, which lenders measure in years of tax calculations, accounts or contracts.Trading history: Full definition · used on 60 pagesTrading history is the length of the record a self-employed borrower can show: how many years of [tax calculations](https://mortgagelane.com/definitions/5#def-sa302), accounts or contracts exist for the income a lender is asked to use. Each lender sets its own minimum. Some want two years of figures, some accept one, and some consider less where the work continues an employed role in the same field.The tax year shapes what the record shows. A sole trader or partner is taxed on the profits of the tax year, and a business's first tax year runs from its start date to 5 April ([Income Tax (Trading and Other Income) Act 2005, section 7](https://www.legislation.gov.uk/ukpga/2005/5/section/7)). A borrower one year into trading may therefore hold twelve months of accounts but no tax return for a full year. A limited company's first accounts run from incorporation to its accounting reference date and can cover up to 18 months. Trading history decides whether a lender will use the income at all; the [affordability](https://mortgagelane.com/definitions#def-affordability) assessment then decides how much it will lend. — Used on · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgage Declined After Exchange, When an Offer Is Withdrawn](https://mortgagelane.com/mortgages/mortgage-declined-after-exchange) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [One Year Self-Employed Mortgages, 1 Year's Accounts](https://mortgagelane.com/mortgages/one-year-self-employed-mortgages) · [Partnership Mortgages, Partners and LLP Members](https://mortgagelane.com/mortgages/partnership-mortgages) · [Remortgage for Business Purposes, Capital for Your Business](https://mortgagelane.com/mortgages/remortgage-for-business-purposes) · [Retained Profits Mortgages, Director Cash and Reserves Checks](https://mortgagelane.com/mortgages/retained-profits-mortgages) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) · [Sole Trader Mortgages, Net Profit, SA302s and Lender Methods](https://mortgagelane.com/mortgages/sole-trader-mortgages) · [Airbnb Mortgages](https://mortgagelane.com/insights/airbnb-mortgages) · [Auction Holiday Let](https://mortgagelane.com/case-studies/auction-bridging-loan-holiday-let) · [B&B Mortgage](https://mortgagelane.com/insights/bed-and-breakfast-mortgage) · and 48 more - [Transfer of equity](https://mortgagelane.com/definitions/5#def-transfer-of-equity)Residential — A change in who owns a property, such as adding or removing an owner, without the property being sold.Transfer of equity: Full definition · used on 8 pagesA transfer of equity often follows separation or divorce, or a partner being added to the title. Where the property is mortgaged the lender has to consent, and it usually reassesses affordability on the borrowers who will remain; a departing borrower stays liable until the lender releases them. The alternative is a [remortgage](https://mortgagelane.com/definitions/4#def-remortgage) to a new lender in the new owners' names.In England and Wales the change is registered at HM Land Registry on a transfer deed. [Stamp Duty Land Tax](https://mortgagelane.com/definitions/5#def-stamp-duty-land-tax) can be due on the consideration, which includes any cash paid and the share of the mortgage debt the new owner takes on. Transfers between spouses or civil partners under an agreement or court order on divorce or dissolution are exempt ([gov.uk: SDLT on transferring ownership](https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property)). Wales has its own tax, [Land Transaction Tax](https://mortgagelane.com/definitions/3#def-land-transaction-tax), and Scotland its own register and [Land and Buildings Transaction Tax](https://mortgagelane.com/definitions/3#def-land-and-buildings-transaction-tax). — Used on · [Buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [Divorce Settlement Bridging Loans \| Buy Out or Settle Fast](https://mortgagelane.com/short-term-finance/divorce-settlement-bridging-loans) · [Gifted Deposit Mortgages, Gift Letters and Inheritance Tax](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) · [Mortgages After Bankruptcy, Discharged Bankrupts and DROs](https://mortgagelane.com/mortgages/bankruptcy-mortgages) · [Single Person Mortgages, Buying Alone and Applying Alone](https://mortgagelane.com/mortgages/single-person-mortgages) · [Help to Buy Mortgages](https://mortgagelane.com/mortgages/help-to-buy-mortgages) · [JBSP Mortgages, Joint Borrower Sole Proprietor](https://mortgagelane.com/mortgages/jbsp-mortgages) - U3 terms - [Umbrella company](https://mortgagelane.com/definitions/5#def-umbrella-company)Specialist lending — A business, often used by recruitment agencies, that employs a temporary worker or contractor and pays their wages through PAYE. It does not find the work; the agency does.Umbrella company: Full definition · used on 9 pagesBecause the umbrella company is the employer, a contractor paid this way receives payslips with tax and National Insurance already deducted, and HMRC says the [IR35](https://mortgagelane.com/definitions/3#def-ir35) rules are unlikely to apply. Lenders differ on umbrella income: some read the payslips, some annualise the contract rate after deducting umbrella costs, and some do not accept it. See [contractor mortgages](https://mortgagelane.com/definitions#def-contractor-mortgage). [GOV.UK: working through an umbrella company](https://www.gov.uk/guidance/working-through-an-umbrella-company). — Used on · [Contractor Mortgages](https://mortgagelane.com/mortgages/contractor-mortgages) · [Contractor mortgages](https://mortgagelane.com/guides/residential/contractor-mortgages) · [Fixed Term Contract Mortgage](https://mortgagelane.com/mortgages/fixed-term-contract-mortgages) · [IT Contractor Mortgages](https://mortgagelane.com/mortgages/it-contractor-mortgages) · [Income Protection Insurance, Deferred Periods and Sick Pay](https://mortgagelane.com/insurance/income-protection) · [Limited Company Director Mortgages, Dividends and Net Profit](https://mortgagelane.com/mortgages/limited-company-director-mortgages) · [Mortgages for Teachers, ECTs, Supply Pay and Student Loans](https://mortgagelane.com/mortgages/mortgages-for-teachers) · [One Year Self-Employed Mortgages, 1 Year's Accounts](https://mortgagelane.com/mortgages/one-year-self-employed-mortgages) · [Self-Employed Mortgages, Sole Traders, Directors and CIS](https://mortgagelane.com/mortgages/self-employed-mortgages) - [Underwriting](https://mortgagelane.com/definitions/5#def-underwriting)Lending and affordability — The lender's assessment of whether to lend and on what terms, covering the borrower, the property, the income and the way the loan will be repaid.Underwriting: Full definition · used on 382 pagesUnderwriting is the decision process behind a mortgage offer. An underwriter weighs the borrower, the security property, the income evidence and the repayment route against the lender's policy, and prices the risk that remains.What dominates depends on the product. Residential underwriting is led by affordability and credit history. Buy-to-let is led by the rent and the stress test. Commercial is led by income sustainability and the valuation basis. Bridging is led by the security and the exit strategy.Criteria published by a lender describe the boundaries, not the decision. Two lenders with identical published criteria can reach different answers on the same case, which is why placing a case with the right lender matters more than the headline rate on a complex application. — Used on · [Bad Credit Buy to Let Mortgages, Defaults, CCJs and Arrears](https://mortgagelane.com/mortgages/bad-credit-buy-to-let-mortgages) · [Bridging Loan Agreement in Principle \| Process & Criteria](https://mortgagelane.com/short-term-finance/agreement-in-principle) · [Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Buy to Let Mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) · [CCJ Mortgages, Satisfied and Unsatisfied CCJs](https://mortgagelane.com/mortgages/ccj-mortgages) · [Can I get a bank loan to buy a commercial property?](https://mortgagelane.com/guides/commercial-mortgages/can-i-get-a-bank-loan-to-buy-a-commercial-property) · [Commercial Buy to Let Mortgages](https://mortgagelane.com/insights/commercial-buy-to-let-mortgages) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Converted Listed Churches and Chapels](https://mortgagelane.com/guides/mortgage-for-listed-buildings/converted-listed-churches-and-chapels) · [Debt Consolidation Mortgages, Remortgage to Clear Debts](https://mortgagelane.com/mortgages/debt-consolidation-mortgages) · [Declined Mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Digital mortgages](https://mortgagelane.com/guides/residential/digital-mortgages) · and 370 more - [Use class](https://mortgagelane.com/definitions/5#def-use-class)Planning and tenure — The category planning law places a building's use in, such as C3 for a home or C4 for a small shared house in England. Moving a property from one class to another can need planning permission.Use class: Full definition · used on 43 pagesIn England the Town and Country Planning (Use Classes) Order 1987 sets the classes. Those met most in property finance are C1 (hotels, boarding and guest houses where no significant care is provided), C2 (residential institutions such as care homes, hospitals and residential schools), C3 (dwellinghouses used by one household, including up to six people living together as a single household) and C4 (a house in multiple occupation with no more than six residents). Class E covers most commercial, business and service uses in England.In England, national permitted development rights allow a change from C3 to C4 and back without a planning application, but an [Article 4 direction](https://mortgagelane.com/definitions#def-article-4) can remove that right in a defined area. A house in multiple occupation with more than six residents fits neither C3 nor C4 and is [sui generis](https://mortgagelane.com/definitions/5#def-sui-generis).Wales uses the same Order with its own changes: Welsh C3 is limited to homes used as a sole or main residence, and Wales has added C5 for homes not used as a sole or main residence and C6 for short-term lets. Scotland has its own Use Classes (Scotland) Order 1997, in which hotels and hostels are Class 7 and houses are Class 9. [GOV.UK: when planning permission is required](https://www.gov.uk/guidance/when-is-permission-required). — Used on · [Buy to Let Mortgage for HMO Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-for-hmo-scotland) · [HMO Mortgages for First Time Property Investors](https://mortgagelane.com/insights/hmo-mortgages-for-first-time-property-investors) · [HMO Valuation Based On Rent](https://mortgagelane.com/insights/hmo-valuation-based-on-rent) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [Hotel Development Finance](https://mortgagelane.com/short-term-finance/hotel-development-finance) · [Mortgage Lane, independent mortgage advice](https://mortgagelane.com/) · [Mortgage for a Flat Above a Shop, Takeaways and Buy to Let](https://mortgagelane.com/mortgages/flat-above-shop-mortgages) · [Additional units or planning permission](https://mortgagelane.com/guides/mezzanine-finance/additional-units-or-planning-permission) · [Airbnb Mortgages](https://mortgagelane.com/insights/airbnb-mortgages) · [Assisted Living Mortgages](https://mortgagelane.com/guides/social-housing-mortgages/assisted-living-mortgages) · [Bridging Loans for HMOs \| Buy, Convert & Refinance](https://mortgagelane.com/short-term-finance/bridging-finance-for-hmos) · [Bridging loan for new premises](https://mortgagelane.com/guides/business-bridging-loans/bridging-loan-for-new-premises) · and 31 more - V4 terms - [Vacant possession (VP)](https://mortgagelane.com/definitions/5#def-vacant-possession)Valuation — A property free of tenants, occupiers or leases. A vacant possession value is the valuation on that basis, ignoring any rent or business the property produces, and RICS standards make it the usual basis for valuing a single buy-to-let home.Vacant possession (VP): Full definition · used on 117 pagesWhen a let property is valued as if empty, valuers call it a special assumption. For a single buy-to-let unit, the RICS standard on buy-to-let and HMO valuation bases the capital value on vacant possession unless the lender agrees otherwise in writing, and it describes the same figure as a bricks and mortar value.It differs from an [investment valuation](https://mortgagelane.com/definitions/3#def-investment-valuation), which capitalises the rent, and from a [going concern valuation](https://mortgagelane.com/definitions/2#def-going-concern-valuation) of a trading business. Where a valuer reports more than one figure, the lender decides which one the loan is based on. — Used on · [B&B Mortgage](https://mortgagelane.com/insights/bed-and-breakfast-mortgage) · [Buy To Let Mortgage For HMO](https://mortgagelane.com/insights/buy-to-let-mortgage-for-hmo) · [Buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) · [Campsite Mortgage](https://mortgagelane.com/mortgages/campsite-mortgages) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Commercial Mortgage for Boarding Kennels](https://mortgagelane.com/mortgages/boarding-kennels-mortgages) · [Concessionary Purchase Mortgages, Gifted Equity as a Deposit](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) · [DSS HMO mortgage](https://mortgagelane.com/insights/dss-hmo-mortgage) · [Equestrian Land Mortgage](https://mortgagelane.com/mortgages/equestrian-land-mortgages) · [HMO Mortgage No Experience](https://mortgagelane.com/insights/hmo-mortgage-no-experience) · [HMO Valuation Based On Rent](https://mortgagelane.com/insights/hmo-valuation-based-on-rent) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · and 105 more - [Value Added Tax (VAT)](https://mortgagelane.com/definitions/5#def-value-added-tax)Fees and charges — A tax added to most goods and services sold by VAT-registered businesses. Most sales and lettings of commercial property are exempt, but become standard-rated where the owner has opted to tax the land or building.Value Added Tax (VAT): Full definition · used on 19 pagesUnder HMRC's guidance the grant, assignment or surrender of an interest in land is normally exempt from VAT, with exceptions: the sale of a new or part-completed commercial building is treated separately, and a builder's sale of a new home is generally zero-rated. An owner can opt to tax land or buildings, after which its supplies of them are normally standard-rated and it can normally recover VAT on related costs.Where VAT is charged on a purchase price, the buyer has to fund it on completion even if it can reclaim it later, which is the gap a [VAT bridging loan](https://mortgagelane.com/definitions/5#def-vat-bridging-loan) covers. [HMRC: VAT on land and property (Notice 742)](https://www.gov.uk/guidance/vat-on-land-and-property-notice-742). — Used on · [SSAS and SIPP Mortgages, Pension Commercial Property Loans](https://mortgagelane.com/mortgages/ssas-sipp-mortgages) · [Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide) · [Bridging Loan for a Self-Build \| Plot Purchase & Gaps](https://mortgagelane.com/short-term-finance/for-a-self-build) · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Bridging Loans for Barn Conversions \| Class Q & Planning](https://mortgagelane.com/short-term-finance/bridging-finance-for-barn-conversions) · [Bridging Loans: detailed guide](https://mortgagelane.com/guides/mortgages-bridging-loans-details) · [Bridging and development topics](https://mortgagelane.com/guides/bridging-and-development-topics) · [Business Bridging Loans](https://mortgagelane.com/short-term-finance/business-bridging-loans) · [CIS Mortgages, Construction Industry Scheme](https://mortgagelane.com/mortgages/cis-mortgages) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Hotel Bridging Loans, Auction and Refurbishment Finance](https://mortgagelane.com/short-term-finance/hotel-bridging-loans) · [Reclaiming VAT on a property purchase](https://mortgagelane.com/guides/vat-bridging/reclaiming-vat-on-a-property-purchase) · and 7 more - [Variable income](https://mortgagelane.com/definitions/5#def-variable-income)Lending and affordability — Pay on top of basic salary that the employment contract does not guarantee, such as overtime, bonus and commission. Each lender decides how much of it to count and over what period.Variable income: Full definition · used on 23 pagesVariable income is the part of an employee's pay that can change from one pay period or year to the next: overtime, bonus, commission and similar payments. For a residential mortgage the lender must obtain evidence of the income declared, and the FCA's guidance says the evidence needed depends on how far each element of income is contractually guaranteed, giving payslips over a period of time as one way to evidence overtime ([FCA Handbook: MCOB 11.6.8R and 11.6.9G](https://www.handbook.fca.org.uk/handbook/MCOB/11/6.html)).Lenders treat variable income in different ways. Some count it in full where it is regular and evidenced, some count a share of it, some average it over one or two years and some leave it out, so the same payslips can support different loans at different lenders. An application that relies on the full amount when the lender counts only part of it can fail at [underwriting](https://mortgagelane.com/definitions/5#def-underwriting). The figure the lender counts then goes into its [affordability](https://mortgagelane.com/definitions#def-affordability) assessment with the rest of the income. — Used on · [Mortgage Declined After Application, Reasons and Next Steps](https://mortgagelane.com/mortgages/mortgage-declined-after-application) · [Mortgage Declined at Underwriting, What Underwriters Check](https://mortgagelane.com/mortgages/mortgage-declined-at-underwriting) · [Mortgage Declined on Affordability, Why Lenders Differ](https://mortgagelane.com/mortgages/mortgage-declined-on-affordability) · [Barrister mortgage](https://mortgagelane.com/insights/barrister-mortgage) · [Expat Buy to Let Mortgage UK](https://mortgagelane.com/insights/expat-buy-to-let-mortgage-uk) · [Expat Mortgage Guide](https://mortgagelane.com/guides/expat-mortgage-guide) · [First time buyer mortgage](https://mortgagelane.com/guides/residential/first-time-buyer-mortgage) · [High net worth mortgages for complex income](https://mortgagelane.com/guides/mortgages-high-net-worth-mortgages/high-net-worth-mortgages-for-complex-income) · [Holiday Let Mortgages Restricted Occupancy](https://mortgagelane.com/insights/holiday-let-mortgage-restricted-occupancy) · [Key Underwriting Factors Specific to Expat Mortgages](https://mortgagelane.com/guides/expat-buy-to-let-mortgage-uk/key-underwriting-factors-specific-to-expat-mortgages) · [Lodger Mortgage](https://mortgagelane.com/insights/lodger-mortgage) · [Low Income Mortgages, Benefits, Schemes and Borrowing](https://mortgagelane.com/mortgages/low-income-mortgages) · and 11 more - [VAT bridging loan](https://mortgagelane.com/definitions/5#def-vat-bridging-loan)Bridging finance — Short-term finance used to fund VAT due on a transaction while an eligible VAT recovery or another repayment source is arranged.VAT bridging loan: Full definition · used on 11 pagesShort-term finance used to fund VAT due on a transaction while an eligible VAT recovery or another repayment source is arranged.A VAT reclaim is not automatic or guaranteed within a fixed period. The transaction’s VAT treatment, eligibility, evidence and expected repayment timing need to support the loan. — Used on · [Bridging Loans](https://mortgagelane.com/short-term-finance/bridging-loans) · [Reclaiming VAT on a property purchase](https://mortgagelane.com/guides/vat-bridging/reclaiming-vat-on-a-property-purchase) · [SSAS and SIPP Mortgages, Pension Commercial Property Loans](https://mortgagelane.com/mortgages/ssas-sipp-mortgages) · [VAT Bridging Loans](https://mortgagelane.com/short-term-finance/vat-bridging) · [VAT Bridging Loans: detailed guide](https://mortgagelane.com/guides/insights-vat-bridging-details) · [VAT bridging loans](https://mortgagelane.com/guides/bridging-loans/vat-bridging-loans) · [What is VAT bridging?](https://mortgagelane.com/guides/vat-bridging/what-is-vat-bridging) · [Bridging Loans: detailed guide](https://mortgagelane.com/guides/mortgages-bridging-loans-details) · [Business Bridging Loans](https://mortgagelane.com/short-term-finance/business-bridging-loans) · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [VAT bridging](https://mortgagelane.com/guides/bridging-loan-guide/vat-bridging) - W1 term - [Warehouse mortgage](https://mortgagelane.com/definitions/5#def-warehouse-mortgage)Commercial — A commercial mortgage used to purchase or refinance warehouse or industrial premises.Warehouse mortgage: Full definition · used on 14 pagesA commercial mortgage used to purchase or refinance warehouse or industrial premises.The lender assesses property use, condition and saleability, together with the occupying business or tenant and lease. Owner-occupied and investment premises can require different products. — Used on · [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) · [Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) · [Commercial warehouse mortgage](https://mortgagelane.com/guides/commercial-mortgages/commercial-warehouse-mortgage) · [Industrial commercial mortgages](https://mortgagelane.com/guides/commercial-mortgage-guide/industrial-commercial-mortgages) · [Warehouse Mortgage](https://mortgagelane.com/insights/warehouse-mortgages) · [Warehouse Mortgage: detailed guide](https://mortgagelane.com/guides/insights-warehouse-mortgages-details) · [Warehouse mortgages](https://mortgagelane.com/guides/commercial-mortgage-guide/warehouse-mortgages) · [What is different about warehouse mortgages?](https://mortgagelane.com/guides/warehouse-mortgages/what-is-different-about-warehouse-mortgages) · [Commercial Mortgage Guide: detailed guide](https://mortgagelane.com/guides/commercial-mortgage-guide/guides-commercial-mortgage-guide-details) · [Commercial Mortgages Scotland](https://mortgagelane.com/guides/commercial-mortgages/scotland) · [Commercial Mortgages: detailed guide](https://mortgagelane.com/guides/mortgages-commercial-mortgages-details) · [Commercial Property Development Finance](https://mortgagelane.com/short-term-finance/commercial-property-development-finance) · and 2 more ## Talk it through with an adviser Twenty minutes on the phone is usually enough to tell you what is realistic. Published: 2026-10-01 Last reviewed: 2026-10-01 Source: https://mortgagelane.com/definitions/5