Copy of `Moneypedia - Finance terms`

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Moneypedia - Finance terms
Category: Economy and Finance
Date & country: 25/09/2007, UK
Words: 127


Rebuilding Cost
An insurance term used to describe the amount of money needed to rebuild a property from scratch. This should be the sum insured for rather than the market value of the property

Redemption Charge
A fee charged by a lender when finance is cleared before the agreed term, to compensate the lender for the loss of interest payments

Repossessed Property
Property that has been repossessed by a mortgage lender after the borrower failed to keep up with repayments. Often subsequently sold at auction for less than the market value

Right to Buy Mortgages
A type of mortgage specifically for council tenants who wish to buy their home under Right to Buy legislation

Risk Based Pricing
The practice of varying the APR offered to finance applicants depending on their credit rating

Second Charge
Another name for a loan which is secured on a mortgaged property. A mortgage is the first charge on a property, so a secured loan is the second charge.

Self Certified Mortgages
A kind of mortgage where the borrow declares their income without any proof such as accounts. Often used by self employed people

Settlement Fee
The amount needed to clear a loan before the term is up, including any early settlement fees and associated charges

Single Trip Insurance
Travel insurance where the cover is only for a single specified holiday or business trip

Smart Card
A type of 'plastic' card which incorporates a computer chip to store data as well as a traditional magnetic strip

Standing Order
A regular payment from one bank account to another, usually on a monthly basis

Store Cards
A type of credit card which can only be used in a specific shop or chain. Store cards have a reputation for being extremely expensive to use

Tax Avoidance
The legal practice of exploiting loopholes in tax law to reduce the amount of tax paid

Tax Evasion
Criminal offence of avoiding paying tax by misrepresenting earnings or profits

Taxi Insurance
A form of vehicle insurance covering private hire or other passanger carrying drivers

Tenant Loan
A form of unsecured personal loan, for people who rent their home

Third party, fire and theft
Car insurance which covers damage to another car or property, plus loss of the vehicle through fire or being stolen

Underwriter
A provider of insurance, the company responsible for meeting claim costs

Unsecured Credit Cards
The most common form of credit card, where no collateral is provided for the credit extended

Unsecured Loan
A type of loan which isn't secured, or guaranteed, on the borrower's property

Variable Rate
A type of finance, usually a mortgage, where the interest rate charged can vary in response to base rate changes

VAT
A tax on goods and services

Visa
One of the major payment solution and credit card clearing companies

Winter Sports Cover
An add-on to a travel insurance policy which will cover for accidents during winter sports such as skiiing

XD
An abbreviation for 'ex dividend', meaning shares which are bought without entitlement to the currently announced dividend

Yield
How much a share in a company earns in dividends, expressed as a percentage calculated by dividing the dividend earned by the share price

Zero Rated
Goods or sevices on which no VAT is charged, such as medicines or childrens' clothing