Second Charge is a legal charge registered against a property as a way of securing a debt. They are known as secondary charges as they have secondary priority behind the first charge (usually a mortgage).
Secured Lending is lending to a borrower which has secured an asset as collateral for the loan. For example, Lendy only do secured lending as all of our loans are secured by a charge over a property.
A Secured Loan is a loan whereby the borrower provides an asset (e.g property) as collateral for the loan, which then becomes a secured debt owed to the loan provider if a loan becomes non-performing. Here at Lendy all of our loans are secured against first charge over a property located within England and Wales.
Self Invested Personal Pension (SIPP)
Self-Invested Pension Plan: a type of UK pension scheme for which a person makes their own investment decisions, within scheme rules.
Senior Debt is the debt on a loan that must be paid first.
Sensitivity Analysis is a method used to understand how sensitive a particular dependent is in relation to a set of independent variables.
Special Purpose Vehicle
Special Purpose Vehicles also known as SPV's are entities that are usually created as subsidiary companies in order to isolate financial risk. Thus, if the parent company is to go bankrupt the assets of the SPV are still secure.
Standard Variable Rate
The Standard Variable Rate is the long-term rate of interest that borrowers will be charged once their fixed rate mortgage or tracker period ends.