Credit and Mortgage Dictionary: D

Daily Interest
Where interest is applied on a daily basis instead of the usual monthly time frame.

Data Protection Act (1988)
Regulations introduced to protect the transfer of personal data within and between different organisations. Remember that every time you apply for a store loyalty card, credit facility or magazine subscription, you are handing over substantial amounts of […]

Credit and Mortgage Dictionary: E

Early Payment Discount
A discount offered for payment of a bill before the due date. This is common practice with utility companies, as it saves the paperwork required in sending out reminders. However, paying by direct debit is usually cheaper.

Early Redemption Payment
Penalty charged by a lender for withdrawing from a mortgage before the date specified in […]

Credit and Mortgage Dictionary: F

Fee
The amount charged by a lender, broker or other middleman for arranging a mortgage or property purchase. See arrangement fee, booking fee, Conveyancing fee, land registry fees, fees added to loan, IGP, stamp duty and valuation fee.

Fee Indemnity Guarantee Premium (Igp)
Fee indemnity guarantee premium (IGP) an insurance premium which insures the lender against any […]

Credit and Mortgage Dictionary: G

Gazumping
The seller’s agent takes a higher bid after accepting yours.

General Conditions
A number of standard rules and conditions that apply to a mortgage, and are presented to the borrower in booklet.

General Insurance
Insurance companies identify different types of insurance policy as falling into different branches. For instance the life branch covers the insurance of people […]

Credit and Mortgage Dictionary: H

High Lending Charge
This is an insurance policy that your lender takes, to cover themselves’ in case you don’t pay and they need to reposes you property.

High Loan To Value Fee
An insurance premium which insures the lender against any loss of money, should you default on your loan or get repossessed. This only usually applies […]

Credit and Mortgage Dictionary: I

IFA
Independent financial advisor is an advisor who has no affiliation with other financial companies.

IG Premium
An insurance premium that insures the lender against any loss of money. This usually applies only if you borrow more than 70 per cent of the price asked for the property you are buying. Even though you have to pay […]