Jargon Buster P

A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z

View Entire Jargon Buster

Part & Part Mortgages

Part Interest Only - Part Repayment - This describes a mortgage where only part of it is arranged on an interest only basis and Part is arranged on a capital and interest basis.

Payment Break

This term is more commonly called a payment holiday. If agreed with your lender, Payments can be stopped for a limited period whilst you get over a financial tight spot. Also see Overpayments and Underpayments.

Personal Loans

A personal loan is a term used to cover unsecured loans. This is a loan taken out by a person or persons hence the name Personal Loan. (Lenders do not require a security for a personal loan).

Poor Credit

This is another term used to describe credit problems due to an adverse credit history. ccjs, mortgage arrears, loan arrears, missed payments and other credit debt repayment problems lead to a poor credit rating. Poor credit is more of a UK term with America more commonly using bad credit. When used to describe poor credit mortgages or poor credit loans they mean mortgages or loans for people with credit problems or a poor credit history.

Portability

This describes the ability to move a particular mortgage product from one property to another in the event of a property move. This is particularly important if a fixed rate, capped rate, cash back or discounted product is taken where early redemption penalties are charged. If a product were not 'portable', then a house move would involve the payment of early redemption penalties even if another mortgage were taken with the same lender. A portable mortgage means that the same scheme is transferred to the new mortgage for the remainder of the original term e.g. a 5 year fixed rate is taken which has redemption penalties within the first five years. If the borrower decides to move after two years then the same five-year rate will apply to the new mortgage for the balance of the remaining three years, subject to meeting the lenders underwriting criteria at the time of the move. If the original product was not portable, however, then redemption penalties would be paid on redemption of the existing mortgage and a new product would have to be taken for the new mortgage.