Financial Terminology: Jargon Buster M - R By: Richard Evans M 1. Mortgage A mortgage is a loan taken out in order to buy a home. The property that you buy is the security against which your repayments are held, so if you don't repay the loan, the home is repossessed. 2. Mortgage term The period of time over which the mortgage loan is to be repaid. N 1. Negative equity You go into negative equity when the value of your home is less than the amount that you owe on your mortgage. Can happen very easily if you take out a 100% mortgage or if property prices fall. 2. Net annual income Your Annual Income after Tax deductions and Pension and Health contributions but before personal expenses like Mortgage or Rent payments and Utility bills. O 1. Online access The ability to access your personal loan account via the Internet. 2. Online decision The ability of the loan provider to issue an automated decision back to the applicant via their web browser or email address. P 1. Payment protection Insurance which pays your monthly mortgage payments, should you lose your income through sickness, injury or unemployment. 2. Penalty rate A fee payable by you for making late payments as defined in your personal loan agreement. The penalty rate will normally be a few percentage points higher than your loan's standard APR and can go into affect after a single late payment. 3. Principal The total amount of the loan on which interest is to be calculated. R 1. Redemption penalty Also known as Early Repayment Charge (ERC) is the charge payable to some loan providers should the loan be repaid in full before the full term of the loan has expired. For example, an arranged loan over 36 months may incur an ERC if it is repaid after 24 months, or any point before the 36 months has been reached. The average ERC can amount to the equivalent of 2 months interest. 2. Re-mortgage Repaying one mortgage by taking out another new loan secured on the same property. 3. Repayment holiday/break A pre-agreed point in time where you are allowed to skip a monthly repayment. Usually a maximum of one a year, often at Christmas. 4. Repayment mortgage A mortgage where the capital borrowed is gradually repaid over the agreed term along with the interest. 5. Repayment period Also called Loan Term, this is the time it takes to pay back the loan. A shorter period means higher monthly payments (there are fewer months over which to spread them), but less interest paid in total on the loan. About the Author: Richard can be found at: www.hallamfinance.com - Loans & Mortgages for People Who Are Different www.loansunited.com - All the UK's Loans & Mortgages in One Place

Inside Finance Debt Consolidation - Homeowners And Borrowers   Debt consolidation for homeowners is been discussed in this article. It is a secured loan, secured on your home. The disadvantage is repossession can result in view of the fact of non repayment. Buying Car After Bankruptcy   Some suggestions are been specified for buying a car after bankruptcy. Chances are the buyer still may have left a pile of money on the table - and didn't even know it. The reason the buyer probably left money on the table is that they more than likely made two critical mistakes without even being aware of it. One mistake was that they didn't negotiate all five parts of the sale separately. The price of the car is just one part. Self-Employed Loans   Self employed have the chance to get all loans. One of the most fundamental details that all banks will look for in all loan applicants is a steady, dependable income. They do not need to show guaranteed income. Payment Protection   Here in this article the protection of loan is been discussed. The Financial Services Authority (FSA) has been investigating the way Payment Protection Insurance is being sold by loan providers which include some of the UK's biggest banks and building societies. And it's big business. Sales of PPI as it's called, earn lenders more than £1billion a year. Driving IRS Crazy   ="Let’s discuss some of the steps to drive IRS.First, the general rule: your vehicle is deductible to the extent you use it for business. So, if you drive your car 100% for business, all car-related expenses are deductible. But if you use it less than 100% for business, do not despair. Less-than-100% use is very typical among small business owners and the self-employed -- you'll still come out way ahead by keeping good vehicle expense records.