Jargon Buster

The world of Finance is full of buzz words and Jargon. In this section I'll translate a whole rack of finance terms so you won't get caught out.

Go direct to: A-B | C-D | E-G | H-L | M-P | Q-S | T-Z | Jargon Index

This is my Index of Mortgage and Loan terms beginning with the letters T to Z.

Tenant Loan
Otherwise known as an unsecured loan, a Tenant Loan is available to non-homeowners. A tenant loan will have a higher rate than a secured loan as there is no property to secure the loan against.
Term
This is the word often used to describe the amount of time your repayments are spread over, ie. a 5 year Term.
Tracker Rate Mortgage
Tracker Rates are set a % above the Bank of England Base Rate. This is similar to a variable rate mortgage, so your monthly repayment can go up or down. So as the Bank of England rate changes you will receive the change immediately unlike a Variable rate that may not fluctuate as much.
Underpayments
As long as you have previously made overpayments some mortgages allows you to pay Underpayments for a limited period. This means you will have a period of paying smaller amounts, however it will take you longer to pay off the loan or mortgage.
Unsecured Loan
Another name for a non-homeowner or tenant loan. An Unsecured Loan is a loan which is not secured on a property, meaning it is available to non-homeowners, but at a higher rate.
Valuation Report
Lenders arrange a valuation to find out the value of the property you require the mortgage on. They will ascertain if the agreed asking price is above or below the value and lend on the lowest of the two figures.
Variable Rate Mortgage
A Variable Base Rate is a level of interest charged by lenders that depending on current market conditions can go up or down. So your interest rate on your mortgage could be within your budget and then if the market changes the interest rate could rise stretching finances. The best tactic is not to borrow to your limit but at a level that you can cope with fluctuations in interest rates.