Finance - Financial
APR- Annual Percentage Rate- Total amount of interest charged on a loan or mortgage.
ARRANGEMENT FEE- The amount payable to a mortgage lender charged on a loan or mortgage.
ASU- ACCIDENT, SICKNESS OR UNEMPLOYMENT- An insurance taken to cover your mortgage payments.
ANNUITY- When a life insurance company makes regular payments to you for the rest of your life, in exchange for
a cash lump sum or your accumulated pension fund
BANKERS DRAFT- A guaranteed payment arranged through a bank.
BLUE CHIP STOCK - Shares in a large company listed on the FTSE 100
BOOKING FEE- Administrative fee charged by the lender on application.
BUILDINGS INSURANCE- Cover taken out to cover the costs of rebuilding or making structure repairs to the
BUY TO LET- type of property that is taken out to buy a property that will be rented out to others
CAPITAL AND INTEREST MORTGAGE-(Repayment Mortgage)
CAPPED RATE MORTGAGE- A variable rate mortgage where interest rates may fluctuate. But can never go higher than
the maximum (capped) rate.
CASH BACK- An amount paid back to you when you take out a loan or mortgage, either a fixed sum or a percentage
of the total amount
CCJ (County Court Judgment)- A court order taken out against a borrower who has defaulted on credit
COMPLETION-When the sale and process of a property has been finalized and the ownership of the house is
transferred to the buyer.
CONCLUSION OF MISSIVES- (Term in Scotland), meaning a type of exchange of contracts.
CONTENTS INSURANCE- Covers the value of possessions and items in the event of a fire or theft.
CONTRACTS- Legal contract between the buyer and the owner (vender) of a property.
CONVEYANCING- The legal process concerning the sale of a property.
CREDIT SCORE- An assessment made by the lender to evaluate the level of risk you pose as a borrower
CREDIT SEARCH- A search carried out by a credit reference agency to check your credit record, whether you have a
CCJ, a history of not paying loans or defaulting and not paying credit cards on time.
CRITICAL ILLNESS COVER- An illness, where a lump sum is paid out if you are diagnosed with a critical
DAILY INTEREST- Interest rates calculated on a daily basis.
DEBT CONSOLIDATION LOAN- To consolidate current debt to another arrangement.
DEPOSIT- The amount of money you pay the bank or building society towards a mortgage.
DEPRECATION- The decrease in value of the purchase amount on a car or property.
DISCOUNT RATE- The reduction of a rate of interest for a fixed term.
DIVIDEND- Money paid to shareholders associated to the companies profits.
EARLY REDEMPTION FEE- What the mortgage lender charges you, if the agreement is re-paid or is switched to
another lender before the agreed term.
ENDOWMENT MORTGAGE- An interest only mortgage and a endowment policy which will be paid as a lump sum when the
EQUITY- The value of the property minus any money still owed on it.
EXCHANGE OF CONTRACTS- When the buyer and the vendor sign identical contracts agreeing to terms..
FIRST TIME BUYER- Taking out a mortgage for the first time.
FIXED RATE LOAN OR MORTGAGE- The interest remains the same through out an agreed time.
FLEXIBLE MORTGAGE- Paying over the agreed amount or under the amount without charges.
FREEHOLD- When the land of the property is owned by the owner.
FUND MANAGER- Someone who invests on behalf of the client on investment schemes.
GAZUMPING- When a higher offer is made to the seller after a price has been agreed.
GROSS INTEREST- The figure of interest before any deductions.
GROUND RENT- What the leaseholder pays to the freeholder.
HOME INSURANCE- To insure your home, for instance building insurance that would mean the outside of your
HOME BUYERS REPORT- A check on the structure of the building carried out by a professional surveyor.
HP- (Hire Purchase)- In effect a hire of an item for a fixed period of time, until the contracted period
IFA- (Independent Financial Advisor) A consultant who gives independent financial advice..
INCOME MULTIPLIERS- The amount of money you can borrow from a lender based on your income.
IVA- (Individual Voluntary Arrangement) (or IVA for short) is a formal, legally binding solution to personal
LIFE INSURANCE-A total sum is paid independents when the named policy holder dies.
LOYALTY BONUS- Existing mortgage holders receive deductions on interest rates and other benefits.
MORTGAGE- A loan from a provider to purchase property, where the property is used to guarantee payment of the
MORTGAGE RATE- The rate of interest the lender charges reflecting on the general rate the Bank of England sets
and can change up or down,
MORTGAGEE-The company giving the loan.
NATIONAL INSURANCE- A tax paid from wages to finance state benefits.
NEGATIVE EQUITY- When the value of a property is worth less than money owed on the mortgage.
NO CLAIMS BONUS- When a policy holder of insurance doesn't claim ( especially prevalent on car insurance).
PAYE- (PAY AS YOU EARN)- When deductions are automatically taken from wages or income and paid directly to the
PERSONAL LOAN- A loan for Individual persons on fixed repayments and interest rates are fixed.
REMORTGAGE- A mortgage taken out when the mortgage or doesn't move home.
REPAYMENT MORTGAGE- When the outstanding capital or any interest is paid on a monthly basis.
SEARCHES- A number of checks made during the purchase of a property with local authorities for any matter that
mat effect the value of the home, such as planning.
SECOND CHARGE- Secured loans are secured against property which already has a mortgage
on it - so, the mortgage is the first charge and the loan is the second charge.
SECURED LOAN- When the loan is secured on an asset, (such as property) to guarantee payment of the loan.
STAMP DUTY- Paid by a purchaser of a property.
TITLE DEEDS- Documentation of proof of ownership of a property.
TERM- The length of time that the loan or mortgage is to be repaid.
TITLE DEEDS- Proof of ownership documentation.
TRANSFER DEEDS-Documentation to transfer proof of ownership.
UNSECURED LOAN- A loan when no security is needed to guarantee payment.
VALUATION- A surveyor employed to check the value of a property and check value.
VARIABLE RATE- Interest rates on a loan or mortgage can fluctuate.
VENDOR- The person or persons selling the property.
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