Mortgage S T U - A To Z

S
Searches
When a solicitor carries out 'searches' to ensure that the person selling the property has a legal right to do so, and that there is no other interest shown on the title. This will determine if there is anything that might affect the title of the property.

Snagg List
When the building of a new home is complete, the buyer is recommended for a surveyor to check if there are any defects which need to be fixed before they complete the sale. This list will then be given to the builders to rectify.

Solicitor
Legal representative, who acts on behalf of the seller of buyer in the purchase or sale of a property.

Split Rate
A split rate can set part of a mortgage at a fixed rate and the remainder at a variable rate, ( ie: 50% fixed, 50% variable). If the rates fall, the repayment on the variable part of the mortgage will reduce, and if rates rise, there is the security of knowing that only the variable payment is affected.

Stamp Duty
A government tax levied on certain legal transactions, such as the purchase of new or second-hand property. Stamp Duty does not apply if an individual is buying a new home and:
* The floor space is equal to or less than 125 square metres (1,346 square feet) and
* The home is their only, or main home for at least five years and they will not earn any rent for the property during this time.

Stamp Duty Rates applicable from Jan 1st 2002:

PURCHASE OF NEW RESIDENTIAL PROPERTY
Owner Occupiers
Others

First-time buyer
Other buyer

Up to €127,000
0%
0%
0%
€127,001 - €190,500
0%
3%
3%
€190,501 - €254,000
3%
4%
4%
€254,001 - €317,500
3.75%
5%
5%
€317,501 - €381,000
4.5%
6%
6%
€381,001 - €635,000
7.5%
7.5%
7.5%
Over €635,001
9%
9%
9%
Owner Occupiers with property under 125sq. m are exempt from paying stamp duty
PURCHASE OF SECONDHAND RESIDENTIAL PROPERTY

First time buyers
Other buyer
Up to €127,000
0%
0%
€127,001 - €190,500
0%
3%
€190,501 - €254,000
3%
4%
€254,001 - €317,500
3.75%
5%
€317,501 - €381,000
4.5%
6%
€381,001 - €635,000
7.5%
7.5%
Over €635,001
9%
9%

Mortgage and Deed Duty
If the mortgage exceeds €254,000/£200,000 duty is charged at €1.27/£1 for every €1,270/£1,000 borrowed. On an €317,435/£250,000 mortgage, for example, the buyer will pay €317/£250 duty, subject to a maximum duty of €630.

Structural Survey
A report detailing the condition of a property. It determines if the property is structurally sound and lists any minor or major defects. It is absolutely recommended for second-hand properties and is great at identifying defects that would not be evident from a valuation.

Surety
Another name for a guarantor.

Surveyor
The person who carries out the structural survey of the property.

T
Term
The period for which a mortgage loan is taken out.

Tenure
Type of ownership of property, (freehold or leasehold).

Title
The legal right to ownership of a property.

Title Deeds
Documents showing the ownership of the property.

U
Undertaking
In the context of home loan lending, the word "undertaking" most frequently refers to the legally binding promise, which a borrower's solicitor gives to a lender to have all security documents signed by the borrower and to certify that the borrower's title to the property is good and marketable.

V
Valuation
This is the quick survey of a property by a valuer. The purpose of which is to establish its suitability for mortgage purposes and also to ensure it is not worth less than the proposed loan. A valuation should not be confused with a structural survey.

Variable Rate
An interest rate that can increase or decrease over the term of the loan in line with general movements in interest rates in the wider economy.