Credit and Mortgage Dictionary: C

Posted on January 3, 2007
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CAB	Citizens’ Advice Bureau. A voluntary service provided in most major towns which offers free advice to individuals on financial and other matters. A very useful starting point for anyone experiencing credit problems.
Cancellation Clause	A clause in a loan agreement that allows a lender to ask for the outstanding balance at any time.
Cap And Collar	See capped rate.
Capital Raising	The act of remortgaging a property based on a higher value compared to the original purchase price. The capital raised is the amount left over after repayment of the original loan is deducted from the new loan. Some lenders will also take into account home improvement projects as part of the remortgage, if they are likely to significantly raise the value of the property.
Capped Rates	The mortgage interest rate will not exceed a certain value during a certain period of time, although it will fluctuate above and below the current level. Some capped products will have a ceiling and a floor between which the rate payable may move; such loans may be known as cap and collar mortgages.
Cash Apr	The APR charged by credit cards for cash advances, which is often higher than the purchase APR. Note that the cash APR also includes the cash advance handling fee as part of the calculations.
Cash Back Mortgages	Cash back mortgages provide you with a single lump sum of cash immediately on completion. The amount of cash is usually calculated as a percentage of the overall loan amount, though it can be a set figure. The percentage of the loan that is given as cash back can be as high as 5%, though amounts in the region of 1 to 3% are more common.
Cash Buyer	Person or persons who do not need a mortgage in order to buy a property and who do not have a property to sell.
Cash Deficit	In relation to a loan, this is money still owed to the creditor at the end of the repayment period of an interest only mortgage.
Cash Discount	A discount offered to a purchaser in a store for paying in cash, as the retailer will avoid paying any transaction charges and will get the funds instantly. Larger multiple stores are unlikely to offer cash discounts, as their transaction charges are calculated from head office.
CAT Standard	These are a set of standards proposed by the government aimed at ensuring a certain level of standard amongst financial products. Whilst they are a sign that a lender or provider is a reputable business and offers products that are of a certain quality, a CAT mark does not ensure that a product is the most suitable one for you.
Caveat	Formal notice asking a court to suspend action until the party which filed the challenge can be heard.
Caveat Emptor	From the Latin “let the buyer beware.” A legal and moral obligation on purchasers of goods to ensure that they are not stolen, and in the case of “sold as seen” goods, that they are of a reasonable quality.
CC	See Competition Commission.
CCA	Act of legislation to clearly define the rules regarding money lending.
CCJ	If payments on a financial agreement are not made, a magistrate may issue a county court judgement (CCJ) in the name of the individual. This greatly affects your credit rating.
Centralised Lender	A general term applied to mortgage lenders, but not to high street banks and building societies, who mainly operate wholly from a head office location.
Certificate Of Deposit	Certificates from a financial organisation declaring you have the funds available to pay the deposit.
Charge	Security the lender relies on when granting credit.
Chartered Institute Of Arbitrators	The official body covering complaints relating to surveyors who are members of the RICS and ISVA professional bodies. All complaints which cannot be rectified directly with the surveyor in question should be referred here.
Circumstances	The set of personal conditions, such as age, employment, income and relationship status, which a lender may use to decide an individual’s creditworthiness.
Circumstantial Lending	The process of lending to customers whose personal circumstances are less than ideal, due to lower income, debt problems or other issues.
CML	Council of mortgage lenders.
Code Of Practice	A group of principles and procedures individual employees of an organisation are expected to follow. This will cover such issues as client confidentiality, fairness and courtesy towards customers.
Collection	Steps taken by a lender to bring a person’s payments back up to date.
COML	See Council of Mortgage Lenders.
Commercial Mortgage	Where the loan is granted for commercial purposes, and is usually secured against commercial property, though residential property may be used. With a commercial mortgage there is a higher rate of interest, as it is a higher degree of risk for the lender.
Commission	A percentage of the overall sale price that is received by the selling party when acting on someone else’s behalf.
Common Law Partner	A partner who cohabits with his or her partner, and who can gain a number of financial benefits from such partner, without actually being legally married.
Comparison Table	A table giving comparisons between leading financial or other products to demonstrate which are the best performers under certain criteria. Remember that many such tables are a “one size fits all” covering a range of scenarios, and that the best way to evaluate your own options may be to draw up your own comparison table.
Completion	The moment at which all the legal formalities of the purchase or mortgage are finalised and the funds are drawn down from the lender, and usually into the solicitors account.
Completion Date	The official date for completion of a sale of a house, when keys are actually transferred.
Compound Interest	Interest on the interest.
Compulsory Products	Aspects of a financial contract that must be adhered to as a condition of the loan. An example of this income payment protection.
Conclusion Of Missives	This is a Scottish term for exchanging contracts.
Conditional Insurance	An insurance policy that has to be taken out as a condition of obtaining a loan. It must usually be taken out via the lender’s agency. See compulsory products.
Conservation Area	An historic area of a town in which properties are protected by the local authority. Planning regulations are particularly tight in conservation areas, although property values are usually much higher due to the attractiveness of the Architecture.
Constant Net Payment	A form of capital and interest repayment mortgage, where the monthly repayments remain the same throughout the term.
Consumer Credit Act (CCA)	This is the main legislation covering the provision of loans to individuals. A regulated loan is one that does not exceed £15,000 and would not include a mortgage loan of over £15,000 and so the lenders set a minimum loan of £15,001 to ensure it is not treated as a regulated loan.
Contents Insurance	This is the insurance of property within your home i.e. furniture, clothing, personal possessions etc. Whilst lenders will be keen to offer contents insurance to borrowers, it is not essential that you should have it from them, or at all. Some policies offer a wider, all-risks wording, whereas others offer much lower premiums for more basic cover. Make sure you are aware of whether your contents policy includes items in your cars, on student property, or when you are traveling; and ensure you do not end up paying twice. Contents cover is a separate type of insurance to buildings insurance, which covers the structure of your property.
Contract Work	Many employers offer employment under fixed-term contracts as they have a greater control over staffing costs and are able to limit their redundancy payment liabilities.
Contractual Lien	The right a lender has to repossess a property if payments are not kept up on the mortgage or other loan secured on it.
Converted Flat	A flat that has been converted from part of a larger property.
Conveyancing	The legal documentation relating to the transfer of ownership of a property.
Conveyancing Fee	A fee charge by a solicitor or licensed conveyancer for arranging the necessary legal work in transferring the ownership of a property. The total cost of the legal work also includes profit cost, stamp duty, land registry fees and disbursements. See fee, arrangement fee, fees added to loan, booking fee, land registry fees, IGP, stamp duty and valuation fee.
Convictions	Entries on an individual’s criminal records. In addition to affecting one’s ability to get employment, some lenders may look at convictions when making a lending decision. A conviction for fraud would make an individual a particularly high risk to many financial institutions, whereas speeding or road traffic offences will affect motor insurance policies.
Co-Ownership	Shared ownership, a method of purchasing property in partnership with a housing association, where the borrower purchases part of the property and rents the rest from the housing association. The minimum purchase amount is 25% of the property value, and the rest may be bought in blocks of 25%. This arrangement is ideal for those whose personal circumstances prevent them from being 100% homeowners.
Council Tax	An annual fee paid to a local authority to cover essential services such as road maintenance, rubbish collection and leisure centres. Council tax is based on the value of the property according to set bands.
County Court Fee	Fee for when a lender provides information to solicitors regarding county court rules when payments are in arrears.
County Court judgement (CCJ)	A county court judgement is a judgement for debt in the county court. This debt does not appear in the credit register if this debt is settled within 30 days of the date of the judgement. Very few lenders are willing to offer loans to anyone with an outstanding or unsettled judgement, and even if the judgement has been settled many lenders are likely to refuse a mortgage or other credit application.
Cover	The risk that an insurance policy protects against, such as third party, fire and theft.
Credit	The process whereby a financial institution lends a sum of money to an individual or a business entity for the purpose of (a) house buying [a mortgage], (b) a major purchase (a loan), (c) general expenses (a credit card or overdraft).
Credit Agencies	Companies used by lenders to establish the financial situation of an individual or company.
Credit Averse	If a borrower has been bankrupt or has outstanding county court judgements they would be described as credit adverse.
Credit Check	Where an enquiry is made on the credit history of an applicant, normally by reference to one of the major credit agencies such as Equifax, CCN or Westcott Data.
Credit Checking Agency	A service used by lenders to establish a level of risk involved in leading money.
Credit File	A record held by a credit reference agency on an individual or a company. You can inspect your own credit file by writing to the agencies.
Credit History	The history of a borrowers financial record.
Credit Limit	The maximum amount of borrowing allowed on a credit card at any one time.
Credit Period	The time frame for which the lender agrees to provide credit.
Credit Rating	Rating used to establish risk involved in lending money. This is used in conjunction with credit history and financial status.
Credit Reference Agency	Companies that hold credit information one file.
Credit Scoring	A generalised way of assessing the credit application, carried out by scoring the answers given on an application. It is important that there are no missing answers on an application otherwise the result for the question becomes a negative.
Credit Worthy	A description of someone who is deemed by a lending institution to be a low risk to lend to (colloquial term). As with blacklisting, there is no such thing as a “perfect credit score”, or someone who is “completely credit worthy”, as there is always some element of risk involved when loans are made, and different institutions use different criteria when evaluating such risk.
Creditor	Person or company to whom a debt is owed.
Critical	Anything which is essential. A form of illness which is life threatening. See critical illness insurance.
Critical Data	Information which is absolutely essential for the running of a business, a household, or other entity. This might include certain computer files, title deeds, insurance certificates and key contact telephone numbers. Such data should be stored in a locked, fireproof chest, and should be backed up off site, so that it is not lost in the event of a burglary or house fire.
Critical Illness Insurance	Insurance cover for major illness, diseases and other potentially fatal medical conditions.
Current Service (Employment)	The amount of time that you have spent with your current employer.

Credit and Mortgage Dictionary: D

Posted on December 28, 2006
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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 personal data for organisations to trade in. Whilst this data may enable them to make special offers which “may be of use to you”, it also means more opportunity to sell you products or services you would not otherwise have bought. If you are not the kind of person to say no easily, make sure you always tick the “no marketing material” box.
Debt	Funds owed to lender.
Debt Consolidation	Replacing a number of existing loans with a single loan from a new lender which may reduce your monthly payments by spreading out a larger loan over a longer period of time, and reducing the interest rate being paid.
Debt-To-Income Ratio	A method used by lenders to establish if a person is qualified to receive a mortgage or loan.
Deed	The document that proves you own the property. It will also show any land boundaries.
Deed Of Covenant	The document expressing the terms of a covenant (a binding agreement), which may typically be imposed by a lender to restrict certain activities, such as use of a house for commercial purposes, or sub-letting.
Deed Of Proxy	A document enabling one person to manage the financial and legal affairs of another individual.
Deeds Release Fee	This fee is charged by the lender for releasing the deeds of the mortgaged property and returning them to the owner or his solicitor, usually when the mortgage has been repaid.
Default	When a payment or a series of payments are missed.
Default Notice	A letter served by a creditor to the borrower to say that a credit agreement has been breached, and that action must be taken by the individual to prevent the creditor seeking repayment via a County Court Judgement.
Deferral Period	A time period on a loan during which no repayments need to be made. This is particularly popular with student and graduate loans, to enable young people to finish their studies, or to travel, before having to start making repayments. “Buy now, nothing to pay until next year” type offers in furniture and other stores also operate with deferral periods.
Deferred Interest	A type of loan where some or all of the interest owed by the borrower is added to the amount outstanding which therefore causes the borrower to owe much more than originally borrowed.
Delinquency	Not making payments at the correct time.
Delinquent Loan	A loan whereby the borrower is behind on payments. If payments are not brought up to date within a set time frame the lender may foreclose proceedings.
Dependant	An individual who depends financially on another person.
Despatch Fee	See deeds release fee.
Direct Debit	A method of making automatic payments electronically from a current account. Direct debits may be at fixed intervals - e.g. for a monthly credit card or quarterly fuel bill, and they may be fixed (e.g. a monthly membership fee), or variable, such as for a mobile phone bill. Direct Debits can also be for irregular payments, such as buying shares.
Direct Lenders	Lenders who operate on lower overheads, through use of call centres, mailing houses, or internet based operations, instead of an expensive branch-based network. Although direct lenders.
Disbursements	Search fees, land registration, stamp duties are all examples of disbursement.
Disc	An abbreviation for discount.
Discharged Bankrupt	Person whose period of bankruptcy has ended.
Discharged CCJ	A county court judgement that has been paid.
Disclaimer	Any written notice designed to discharge liability of a company, for providing inaccurate information in a leaflet.
Discount Period	Time period in which reduced payments are offered.
Discount Purchase Price	The price of a property which has been reduced below the open-market value, such as in the case of a right-to-buy purchase or a builder’s discount. Under right to buy legislation, properties are not offered at the open market value, but at a discount, and if the property is resold within a three-year period, some or all of the discount will have to be repaid.
Discount Rate	The mortgage interest rate is lower than the current normal standard variable rate, but only for a certain period of time. Usually shown as a fixed percentage reduction to the lender’s normal variable rate e.g. 2.00% discount for 2 years.
DSS Payments	Income received from the department of social security towards the payment of mortgage or rent. They are used by a lender only in exceptional circumstances to confirm the ability to service a loan. Benefits are only paid after the first 39 weeks of an income support claim.

Credit and Mortgage Dictionary: E

Posted on December 26, 2006
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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 the mortgage conditions. These penalties are usually associated with fixed or discounted loans.
Early Repayment Period	Period in which charges are levied by the lender when the mortgage loan is repaid before the end of the full term.
Effective Gross Income	Total income, including extra income that the lender considers when assessing a loan application, such as bonuses, rent payments, alimony or share dividends.
Employed	Refers to a person who has an open-ended contract of employment and has income tax and national insurance contributions deducted from their salary.
Employee	A person who works for a company, government body, or other organisation, as opposed to someone who does not work (un-employed), or someone who works for their own company (self-employed).
Employer	Any business, government body, or other organisation which has one or more staff members.
Employer’s Reference	A written statement from an employer confirming the borrower’s employment, giving details of salary and length of service. This is essential in assessing an employee’s ability to repay the mortgage.
Employment Status	The individual’s employment position. That can be either employed, self-employed or unemployed; full time or part time.
Endowment	A life assurance policy into which you pay monthly premiums. The proceeds are free from all taxes as long as the policy conforms to all the qualifying rules. See also: with profit, unit linked, unitised with profits.
Equity	The share that you own in your home, i.e. The property value less the mortgage loan outstanding.
Equity Appreciation	Increase in the equity you have in your home.
Exclusive Products	Particular mortgage lenders fund and administrate certain mortgage products that are only available whilst such mortgage products are funded and administered by a particular mortgage lender, they are available only from certain mortgage brokers or other particular distribution channels.
Executor	A person who executes the instructions in a will.
Existing Liabilities	Loans and other repayments which are taken into account by lenders when you apply for a mortgage.
Extended Redemption Penalty	When a redemption penalty continues beyond capped and fixed rates.
Extension	An addition to any existing property in order to provide more space. Major extensions should always be drawn up by an RIBA registered Architect, and will require planning permission from the relevant local authority. See also: overdraft extension.

Credit and Mortgage Dictionary: F

Posted on December 24, 2006
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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 loss of money, e.g. If you default on your loan or get repossessed. 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 for the insurance premium, it does not mean that you are covered by the insurance, the lender is.
Fees Added To Loan	The additional costs that are associated with arranging a mortgage and are incorporated into the amount you borrow, they may include indemnity guarantee premiums and arrangement fees. These fees that may be added vary with lender, and therefore care should be taken when the sum of the loan and any costs added to the loan may cause the total advanced to exceed a given loan to value ratio. See fee, arrangement fee, booking fee, conveyancing fee, land registry fees, IGP, stamp duty and valuation fee.
Feuhold	This is the equivalent of a freehold under Scottish law.
Financial Adviser	A person who helps individuals with their financial situation.
First Charge	A legal charge used to secure the main mortgage. A lender with a first legal charge over a property has a first call on any funds available from the sale of the property. See also: second charge.
First Time Buyer	A person that is purchasing a property for the first time. Some lenders offer preferential lending terms to first time buyers. A borrower who has owned a property before but has sold this prior to buying again may be offered first time buyer terms by some lenders but this is dependent on the lender.
Fixed Rate Loans	Offer a fixed rate of interest for a set time frame.
Fixed Rates	A loan where the initial payments, for a certain period of time, are based on a specific interest rate. The rate payable will not change during that period regardless of changes in the lender’s standard variable rate.
Fixtures And Fittings	There may be bites in the house that you want included in the sale like carpets door handles light fittings etc.
Flat Over Shop	Residential habitation situated above retail premises. Some lenders will not lend on this type of security because it is seen as having limited appeal to prospective purchasers and therefore have a lower value compared to an otherwise similar property. Any property that is located above commercial property usually takes longer to sell than properties which do not have any commercial element. A flat above a take-away restaurant is more difficult to arrange a loan on than a flat above a book shop.
Flats	A self contained flat that has been converted out of part of a larger property, is known as a converted flat. A flat which has the freehold of the land on which it is built, is known as a freehold flat. A flat designed and built as such; a self contained residential unit contained within a larger structure containing several self contained units or flats all sharing a common entrance, is known as a purpose built flat a studio flat, is a flat comprising a single habitable room, plus bathroom and possibly separate kitchen. Many lenders will not lend on these properties as they are considered more difficult to resell.
Flexi	An abbreviation for flexible. Flexible mortgages are offered by some lenders and allow you to make overpayments in order to repay the mortgage early or save for a special event.
Forbearance	An action a lender may take to delay foreclosure or legal issues with a delinquent borrower.
Foreclosure	The legal process when a borrower defaults on a loan.
Forfeiture	When a delinquent borrower surrenders their property rights.
Freehold	Land or property which is owned outright, as opposed to leasehold where the owner has the right to occupy the land or property for a given period of years only. See also: Feuhold.
FSA	Financial Services Authority.
FTB	FTB see first time buyer.
Full Status	A loan where complete checks are made on the borrower’s credit history and income.
Full Structural Survey	This is very important as it will tell you if there is any problem or faults with the property you are buying.

Credit and Mortgage Dictionary: G

Posted on December 18, 2006
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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 and is generally known as life assurance. The insurance of property, is known as personal lines.
Grace Period	Time frame in which loan payments can be made after due date without penalty.
Gross Income	Total income after tax.
Ground Rent	When you are a leaseholder you will probably have to pay ground rent to the person that owns the land you property stands on.
Guaranteed Earned Income	Is income that you receive along with your basic salary that is not part of your normal basic pay under the terms and conditions of your employment but which you are guaranteed to receive.
Guarantor	Is a person who agrees to guarantee that a loan will be paid. The guarantor is therefore fully liable for the repayment of the borrowed amount should the borrower default.

Credit and Mortgage Dictionary: H

Posted on December 5, 2006
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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 if you borrow more than 75 per cent of the price asked for the property you are buying. You are not covered by the insurance premium, even though you have to pay for it, the lender is. This is also known as indemnity guarantee premium.
High Street Lenders	Mortgage providers based on the high street. These are mainly banks and building societies.
Holiday Home	A property that will not be your main address or place of residence.
Home Equity Loan	A method releasing capitol from people’s homes.
Home Improvements	Work carried out to improve your home. Previously mortgage interest relief was given on loans for home improvements in the same way as for house purchase. Loans taken out before its abolition still receive this relief but this is lost if you move lender.
Homebuyer’s Report	A less stringent report than a full structural survey.
Homebuyer’s Valuation Fee	This is the fee paid for a full thorough, inspection of the property you are thinking of buying. This is frequently referred to as an option valuation fee.
House Or Flat Buyer’s Report	A more thorough survey than the simple valuation carried out on the property by the lender. If your lender does not offer this as an alternative to the basic valuation, you can negotiate with the surveyor carrying out the valuation for the fuller inspection and this may cost you less than a separate inspection.
Household Insurance	Insurance cover for your home. The two main types are building and contents insurance.
Housing Association	A body of trustees or company that is established for the purposes of providing, building, improving or managing, or facilitating, or encouraging the construction or improvement of, housing accommodation. It does not trade for profit. Anyone wanting help with housing puts his or her name down on the housing association list which acts in the same manner as council house lists.

Credit and Mortgage Dictionary: I

Posted on December 2, 2006
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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 for the insurance premium, you must remember that you are not covered by the insurance, the lender is.
Indemnity Guarantee Premium (IGP)	An illustration is an example of the monthly cost of a mortgage and other expenses associated with the loan such as set-up costs.
Illustration	Specialist loans for those aren’t applicable for standard loan products.
Impaired Credit	Is a way of motivating the people to take out a loan with the lender by offering deals such as cashbacks.
Income	Provides protection if you are unable to make payments on an outstanding agreement.
Income Protection Insurance	Third party conformation of income.
Individual Saving Accounts (ISA)	A tax-efficient plan launched in April 1999 to replace PEPs. Permits investment in stocks and shares, cash deposits and insurance.
Individual Voluntary Arrangement (IVA)	IVA was introduced under the insolvency act 1986 with the intention of allowing an individual to avoid bankruptcy and make maximum possible restitution to creditors. An IVA is seen as preferable to bankruptcy as the debtor can retain his tools of trade and, in the case of a professional person, continue to practice, or hold company directorships. IVA’s can be set up for either a person or a company. An insolvency practitioner petitions the high court for protection for a borrower debtor under an IVA. A proposal is put to the creditors of whom 75% must accept. If this is achieved, the arrangement becomes binding upon debtor and all creditors named in the agreement. If the debtor fails to meet payments under an IVA the insolvency practitioner is likely to petition for the individual to be made bankrupt. Whilst bankruptcy normally lasts for only three years some creditors insist that IVA’s last a longer period.
Inflation	Increase in earnings or prices, which change in accordance with price inflation, and the national average earnings.
Inheritance Tax	Tax payable on your estate when you die and possibly on certain gifts during lifetime if in excess of the nil rate band £7,700 this is based on the rate for the tax year 2002/2003.
Initial Rate	The payment of interest to cover the period between the date of completion and the normal date from which an interest payment is due. For example if mortgage payments are normally due on the 30th of a month and the loan completes on 14th march, the first monthly payment may be due one month from 30th march, on 30th April. Any interest due for the period from completion until 29th march will be due with the initial mortgage payment. Therefore, the borrower’s first mortgage payment will normally comprise one full month’s payment plus the initial interest.
Insurance	Accident, sickness & unemployment (ASU) insurance cover arranged by the borrower to protect against inability to meet mortgage payments. This cover should more accurately be described as accident sickness and redundancy insurance as unemployment cover is generally seriously restricted to cover only events that are entirely beyond the control of the insured person. Typical exclusions include dismissal following professional misconduct and any act of voluntary redundancy. The accident and sickness cover will also be subject to major restrictions such as any act of self-injury or any injury related to the use of alcohol or drugs. Buildings insurance covers the structure of the building, which you must have. Where the property is leasehold the buildings insurance will normally be arranged by the freeholder and the cost charged on to the leaseholder within the service charges payable. Conditional insurance policy that has to be taken out as a condition of obtaining a loan, which normally must be taken out via the lender’s agency. Contents insurance this is the insurance of property within your home i.e. Furniture, clothing, personal possessions etc. As distinct from the buildings insurance. Whilst lenders will be keen to offer contents insurance to borrowers, it is not essential that you should have it. Some policies offer a wider, all-risks wording. General insurance companies identify different types of insurance policy as falling into different branches. For instance the life branch covers the insurance of people and is generally known as life assurance. The insurance of property is known as personal lines. Payment protections see accident, sickness and unemployment insurance. Personal lines see general insurance. Terms simplest form of life assurance. The insured person or persons are covered against death within a fixed period subject to the payment of the premiums, which is normally monthly or yearly. If an insured person dies within the policy term the sum assured is paid out. If all insured persons survive the term the premium has been spent and the insurance ends with nothing being paid to the policyholders.
Interest Only	Mortgages where you pay off the interest only.
Interest Only Mortgage	A loan where only payments of interest are paid to the lender during the term of the loan. All mortgages other than capital and interest repayment loans are a form of interest only loan. Some lenders will allow loans to be set up without any specific provision to repay the capital at the end of the period this is known as a pure interest only loan.
Interest Rate	Percentage of your loan that a lender charges each year for lending you money.
Intermediaries	Broker or person who attempts to sort and arrange financial packages for you.
Introducer	Person who introduces a loan to a lender.
IPT	Insurance premium tax.
Irregular Earned Income	This is any additional income over the basic salary that is of an unusual nature; additional payments to which the employee may be entitled but which are not received on a regular basis.
ISA	A tax free saving scheme, which allows investors to save up to £7,000 a year in shares, cash, or insurance policies, without having to pay any capital gains tax when the portfolio value rises.
IVA	Individual voluntary arrangement (IVA).

Credit and Mortgage Dictionary: J

Posted on November 27, 2006
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Joint Application	A mortgage application that involves more than one person as the borrower.
Joint Liability	Two people who are responsible for a loan or debt.
Judgement Lien	Court ordered monetary judgement against a property owner which has not been paid