Bad Credit Loans Glossary

A regular payement made to an employee by the company they work for in return for time spent at work.

A mortgage loan that is taken out on a property that is already mortgaged. It is a way of releasing equity from your property without incuring the costs of changing your current mortgage (e.g. some first mortgages have incentives such as fixed rates and there could be a charge to pull out of that agreement)

A loan which is secured against the property.

The means by which a self employed person who does not have any accounts, can state his earnings. Some lenders will use this to support an income multiple.

A person is is not employed and works for him or herself. Directors of companies who pay themselves with PAYE but own a certain percentage of the company, will sometimes be classes as self employed by lenders.

The term used for the final sum requested by a lender to clear an existing loan.

This enables a mortgagor to purchase part of a property when the remainder of the property belongs to a housing association. Rent is paid on the remainder. The borrower is usually allowed to purchase further parts of the property as and when he can afford to.

A person is is not employed and works for him or herself on their own.

A credit card with a picture chosen by the credit card holder to represent a particular sport (golf, jogging, football).

A standard credit card is a type of basic or classic credit card that most credit card issuers offer to credit card holders.

The Scottish equivalent of an English mortgage deed.

A lenders main interest rate, it can change in line with the Bank of England Base Rate.

A type of credit card or charge card that stores and retail outlets or shops offer to customers. Store cards are often at higher rates than credit cards but they offer special deals to clients including discounts, invitations to sales evenings.