Finance Wiz: glossary all references

financewiz.co.uk - Independent Financial Advice : all references

HOME

Word(s) :

ABI - Association of British Insurers - An association that brings insurance companies together to set industry standards and codes of practice.

Accident, sickness and unemployment (ASU) cover - insurance taken out with a mortgage lender to cover mortgage repayments in the event of accident, sickness or unemployment.

Accidental Death Benefit - Can be added to some life insurance policies and provides payment of an additional benefit in the case of death resulting from an accident.

Accrual Rate - Rate at which pension benefits grow within an Occupational Pension Scheme for each year in service. Usually expressed as a fraction of final salary.

ACD - Authorised Corporate Director - of a company, relating to ISAs.

Act of God - An accident or event, which happens due to natural causes such as storm which no one could foresee.

Actuary - A professional person trained in the technical aspects of insurance and its related fields, particularly in the mathematics of insurance.

A Day - April 2006 Pensions Reform.

ADD - Accidental Death and Dismemberment - loss of life or limbs through accident.

Additional Borrowing - The extra money you can borrow on top of what you've already borrowed.

Advance - total amount of the loan.

AER - Annual Equivalent Rate - the interest you would earn in a year if you left all your monthly interest in your savings account.

Affinity Card - A credit card that allows you to donate money to a charity or other worthy cause every time you make a purchase.

Agent - Someone who acts on behalf of another.

All-in-one-mortgage - A flexible mortgage that combines all your accounts, loans and mortgage, and has a single rate of interest.

All-Risks Policy - Contents insurance that includes cover for your belongings when you take them outside the home.

Allocation Rate - The percentage of your payment that is actually invested after initial charges have been taken into account.

All Share Index - All the companies that are listed on the UK Stock Market.

Alternative Investment Market - An index of companies hoping to get a full listing on the main stock market.

AMRA - Access to Medical Records Act 1988 - An insurance company must obtain prior written consent from you before approaching any medical practitioner for a medical report about you. You have other rights including the right (subject to some restrictions) to see any report before the doctor submits it.

Analyst - Person who studies particular stock markets or industry sectors and makes recommendations regarding the shares of specific companies.

Annual Percentage Rate - APR - the total yearly interest charged on a loan or mortgage.

Annual Management Charge - A charge, usually a percentage of the value of your investment, deducted from your investment each year.

Annuity - regular payments made to you, by a life insurance company for the rest of your life in exchange for a cash lump sum or pension fund that you have accumulated.

Appointed Representative - This is a salesperson, company or organisation that advises on the investment products of one single life assurance company. It can also refer to an Independent Financial Adviser who is a member of a network.

APS Scheme - Approved Profit Sharing scheme - gives employees a share in their company's profits in the form of free shares.

Arrangement fee - a payment made to a mortgage lender for arranging the mortgage.

Assurance (more) - (chiefly British definition) Insurance providing for certainties such as death.

Assignment - The transfer of one person's interest in a legal right or duty to another person or organisation.

ATM - Automated Teller Machine - more commonly known as a cash machine.

AVC - Additional Voluntary Contributions - the contributions you pay as a member of an Occupational Pension Scheme, to that scheme, over and above the normal contribution level in order to purchase additional retirement benefits.

Bankers' Draft - a guaranteed payment arranged via a bank.

Base Rate - Interest rate set by the Bank of England, used to determine borrowing and savings rates across the UK.

Basic State Pension - The standard pension that people over the retirement age receive (subject to National Insurance contribution conditions). It is a fixed amount, not connected to earnings.

BBA - British Bankers Association - the trade organisation of all the British banks.

Bear Market - A market that is experiencing a consistent fall in share prices.

Beneficiary - The person who is or will be the ultimate recipient of, for example, a legacy under a will or a trust fund.

Benefits - The money payable to a claimant, assignee, or beneficiary under the terms of an insurance policy.

Benefits in Kind - Benefits other than cash, provided to a person through their employment, for example, cars, or private medical insurance.

Bequest - A sum of money or other property available upon the donor's death.

Bid-Offer Spread - The difference between buying (offer) price and selling (bid) price of a share.

Bid Price - The price at which you can sell shares or units back to a company or investment manager.

BGC - Bank Giro Credit - a one-off payment to an organisation or individual.

Blue Chip Stocks - shares in a large company that is listed on the FTSE 100.

Booking Fee - administrative fee charged by a lender on receiving an application.

Bond - Issued by companies to raise finance. Bonds pay interest to their holders, rather than dividends.

Bond Fee - A type of unit trust investing in bonds, rather than shares, and paying investors an income.

Bonus Account - A savings account that pays a bonus if you keep your money invested for a set period.

Breakdown Cover - If your car breaks down, this type of cover provides a mechanic to fix it at the roadside or arranges for you to be towed to a garage if the problem's more serious.

Bridging Loan - If a house purchase involves the sale of one property and the purchase of another it's normally best if the two deals happen at exactly the same time. If this is not possible and the purchase of the second property happens before the sale of the first is completed then another loan may be needed. This additional loan is a called a 'bridging loan' and bridges the gap between the two house transactions.

Broker - An agent who brings two parties together, enabling them to enter into a contract to which he is not a principal.

Budget Card - A store card with which you pay a monthly amount into you account and get a credit limit usually 24 times that amount.

Buffer Zone - A charge-free and sometimes interest-free overdraft on an account.

Building Society - A financial institution owned by its members (rather than by shareholders) which pays interest on deposits and lends money on the security of property to enable members to buy their own homes.

Buildings Insurance - cover taken out to cover costs of rebuilding or making structural repairs to your property.

Buildings And Contents Insurance -A combined insurance policy which covers both the cost of rebuilding or repairing the structure of the property and also includes cover for damage/loss to the property contents.

Bull Market - A market that is experiencing a consistent rise in share prices.

Buy To Let - type of mortgage taken out to buy a property that will be rented out to tenants.

Cancellation Clause - A provision in an insurance contract that permits the insurer or the insured to cancel a policy at any time before its expiration date.

Capital - When investing, this is your original investment. When borrowing, this is the amount of debt, excluding interest.

Capital And Interest Mortgage - see repayment mortgage.

Capital Gains Tax - CGT - A tax on the increase in the value of an asset, such as a share, since you bought it.

Capital Share - A share in an investment trust for investors who want to see their capital grow.

Capped Rate Mortgage - a variable rate mortgage where interest rates can fluctuate but can never go higher than the maximum (capped) rate.

Cashback - an amount paid back to you when you take out a loan or mortgage, either a fixed sum or a percentage of the total amount.

Cash ISA - An account that allows you to earn interest tax free on cash savings.

Cash Plan - Pays out cash if you have to spend time in hospital. May also pay towards other medical treatment.

Cash sum at retirement - The giving up of a portion of retirement income benefits in return for receipt of a tax-free cash lump sum at retirement.

Cash Surrender Value - The amount of money received when a policyholder surrenders a life insurance policy with cash value.

CAT - Short for Charges, Access and Terms, CAT refers to a voluntary standard set by the government for ISAs.

CAT standard - A voluntary standard set by the government, covering Charges, Access and Terms for ISAs.

Caveats -Conditions attached to an insurance quotation or agreement when opening an account.

CCA - Consumer Credit Act - UK legislation which sets the rules for the way in which banks and other lenders lend money to members of the public.

CCJ - County Court Judgment - a court order taken out against a borrower who has defaulted on credit repayments.

Certified Share - A share for which you receive a share certificate and which gives you the right to vote at annual general meetings.

CHAPS Payment - Clearing House Automatic Payment System - an electronic transfer of money between two bank accounts that will clear the payee's account on the same working day provided instructions are received before 3.15 pm.

Claim - An application for compensation.

CML - Council of Mortgage Lenders - a trade organisation made up of most of the major banks and building societies.

Collective Investments - The money of many investors collected together by an investment manager and invested in the stock market.

Commission - An amount paid by a financial institution to an intermediary for the placing of business.

Commutation - See "Cash Sum at Retirement" (more).

Company Pension - A pension scheme established by an employer for the provision of retirement benefits and /or other benefits for one or more employees (more).

Company Representative - A financial adviser who can only advise on their own company's products.

Completion - when the sale of a property has been finalised and ownership of the house is transferred to the buyer.

Compound Interest - This is interest earned on interest and can make a big difference to the value of long-term savings.

Comprehensive Insurance - This is a form of car insurance and includes cover against third party claims, fire, theft and any accidental damage to your own car (more).

Conclusion of missives - (term used in Scotland), see exchange of contracts.

Conditions - Provisions in an insurance contract that state the rights and duties of the insured and of the insurer.

Consequential loss - A financial loss occurring as the result of some other loss.

Consolidation loan - A loan taken out to pay off all your debts.

Contents insurance - covers the value of your possessions in the event of damage or theft.

Contract - legal agreement between the buyer and vendor of a property.

Contribution limits - Restrictions that limit the maximum amount that can be paid into Occupational Pension Schemes, Personal Pension Plans and Retirement Annuity Contracts.

Consumer credit act - UK legislation which sets the rules for the way in which banks and other lenders lend money to members of the public.

Conveyancing - The legal work, usually carried out by a solicitor, associated with buying or selling a property.

Cooling off period - A period allowed in certain circumstances when a person who has entered into a contract (for example, an insurance policy or a personal loan) may cancel it without incurring any penalty.

Corporation tax - A tax payable by companies on their profits.

Cover - Protection provided by an insurance policy.

Cover note - A temporary certificate confirming that an insurance policy is in force.

Credit - Allows you to buy goods and services before you pay for them.

Credit score - an assessment made by a lender to evaluate the level of risk you pose as a borrower.

Credit insurance - Pays your monthly installments if you have a loan, or a percentage of your credit card debts for a set period of time, if you can't work or are made redundant.

Credit search - a search carried out by a credit reference agency to check your credit record, whether you have CCJ, a history of not paying loans or credit cards on time, etc.

Credit rating - A score awarded to you by lenders to indicate whether you are creditworthy or not.

Crest -The settlement system for UK shares. The shares are traded in electronic form.

Critical illness cover - insurance where a lump sum is paid out if you are diagnosed with a specific illness.

Current Account Mortgage - A type of mortgage that combines a mortgage with a current (banking and cheque account).

Custom and Exercise - A government department responsible for the collection of duties on imports, VAT and other taxes including Insurance Premium Tax.

Curtailment - Cutting and activity short.

Daily interest - interest rates are calculated on a daily basis, rather than monthly.

Date of entry - (term used in Scotland), see exchange of contracts.

Death Benefit - A life insurance payment made upon the death of an insured person.

Death-in-service benefits - Usually a lump sum paid to an employee's beneficiaries if the employee dies while still employed by the company. Usually linked to company pension schemes.

Debt consolidation loan - loan taken out to consolidate applicant's current debt.

Decreasing Term Insurance - Life insurance that pays out a lump sum if you die within the term of the plan , but where the insurance sum assured reduces during the term.

Deeds fee - An administration charge made by lenders when you repay your mortgage to release the deeds of the property. Also known as a sealing fee.

Deferred Period - See "Excess Period".

Decreasing term assurance/insurance - life assurance where the amount of cover reduces over time to reflect a decreasing mortgage balance.

Deposit - the amount of money you pay towards the purchase of a property at the start of the mortgage.

Dental Plan - A policy that helps you spread the cost of dental care over the year.

Dependant - An individual, a spouse or child or someone who depends on another for financial support to get by day to day.

Dependent's pension - A pension scheme option which, if the pensioner dies, still provides a a continuing pension to their spouse or partner (termed as someone who was financially dependent on the Pensioner at the time of the Pensioner's retirement or death).

Deposit account - An account with a bank or building society, which pays a variable rate of interest. You may get a higher rate of interest if you choose an account which doesn't give you instant access to your money.

Depreciation - the decreasing value of an asset, for example a house or car, over a period of time.

Derivatives - A collective name for complex financial products used in the stock markets, such as futures, options and warrants.

Direct debit - A procedure that enables an organisation to take money it is due directly from the bank account of a person; for example, an insurance company taking monthly payments to insure your house.

Disability - Physical or mental condition that prevents a person from undertaking 'normal' duties of a job or the ordinary activities of life.

Disbursements - solicitor's expenses.

Disclosure - The duty of any person applying for an insurance policy to tell the insurer all relevant information affecting the policy that they are applying for.

Discount broker - A person who sells unit trusts and rebates some of the initial charge back to the investor.

Discount rate (mortgage) - a reduced mortgage interest rate that lasts for a fixed period of time.

Dividend - money paid out to shareholders relative to the company's profits over a period of time, usually on an annual or six monthly basis

Early redemption fee - a charge made by the mortgage lender if the loan is repaid or moved to another lender before the agreed date.

Earnings cap - The upper limit on the amount of salary that can be taken into account when calculating how much you can contribute to your pension, or take from your pension.

Earnings limit (lower) - The minimum level of earnings (ie- salary or wages) before a person begins to pay National Insurance Contributions.

Earnings limit (upper) - The maximum level of earnings (ie- salary or wages) on which National Insurance Contributions are payable. If your earnings are over this amount, you won't pay any more National Insurance Contributions.

Earnings per share - An indicator of the amount of money you will earn on each share which you own in a company.

Effective date - The date on which insurance under a policy will begin.

Eligibility date - The date at which an individual becomes eligible for benefits under an insurance policy.

Employee share scheme - A scheme that allows employees of a company to buy shares in the company, often at a discount.

Endorsement - An amendment to an insurance policy that in some way changes the policy.

Endowment mortgage (more) - type of interest-only mortgage where an endowment policy is taken out to pay off the remaining debt at the end of the mortgage term.

Endowment policy (more) - a life assurance savings scheme designed to pay out a lump sum when the policy matures.

Equity - the value of a property minus any money owed on it.

Equities - Stocks and shares in a company

Equity release - when a new or larger mortgage is taken out to free some of the equity that has built up in your property.

Estate - A person's money, property and debts when he/she dies.

Estate agency fee - the commission charged by an estate agent to a property vendor, usually charged as a percentage of the sale price.

Excess - The amount of money which you have to pay yourself if you make a claim on your insurance policy.

Excess period - The time you have to wait before an insurance policy begins to pay out.

Exchange of contracts - a legally binding agreement where buyer and vendor sign identical contracts agreeing the terms of the sale, including the price of the property, any fixtures and fittings included in the price, and the completion date.

Exclusions - Specific situations or conditions that are not covered by an insurance policy.

Execution only - where the company arranging or selling the financial product does not give any advice regarding the benefits or risks concerning the product.

Executor - The person nominated to manage your affairs and distribute your estate when you die. You usually identify this person in your will.

Final salary scheme - a type of pension scheme where the fund is calculated based upon the policy holder's final salary. The number of years in employment are also taken into consideration.

Financial Ombudsman Service - Independent body to decide complaints relating to banking, investments and insurance.

Financial year - The 12 months that a company or business chooses to prepare its accounts for. Many companies do not use a calendar year for their accounting period.

Fiscal policy - Government policy on influencing the direction of the economy through the use of taxation.

First-time buyer - a borrower taking out his or her first mortgage.

Fixed premiums - Costs for an insurance policy which stay the same , usually for a specified period.

Fixed rate (loan/mortgage) - where the interest rate charged on a loan or mortgage remains at the same level for an agreed length of time.

Flexible loan - A loan that allows you to borrow up to an agreed amount, so that you can increase or decrease the loan depending on how much money you need from time to time.

Flexible mortgage - where the borrower can under-pay or over-pay on the mortgage without incurring charges.

Flotation - When a company joins the stock market and starts to sell its shares to the general public.

Footsie - Another name for the FTSE 100 Index, the index of the top 100 companies in the UK.

Freehold - when the land on which the property sits is also owned by the homeowner.

Friendly society - A financial organisation that sells tax-exempt life insurance investments.

FSA (more) - Financial Services Authority.

FTSE - Where shares and equities are bought and sold.

FTSE 100 index -An index of the 100 largest companies (by value) whose shares are traded on the UK stock market and which any member of the public can buy.

FTSE 250 index - Similar to the FTSE 100 Index, but listing the 250 largest UK companies.

Fund - A general term for any investment vehicle that pools together the money of many small individual investors and invests it according to a defined set of investment aims and objectives.

Fund manager - a person employed to run a fund and make decisions about how money is invested.

Further advance - When you borrow more money against your property by increasing the size of your mortgage.

Gazumping - when an offer on a property is accepted by a vendor, but a higher offer is subsequently received by another party and accepted by the vendor.

General Insurance Standards Council - GISC - Monitor and enforce standards on sales and provision of advice on general insurance.

Gilt - a government bond or stock where interest is predetermined and paid over a set term.

Gold or Platinum cards - Credit cards that offer extra services such as travel-accident insurance.

Gold or premier account - A bank account that often has high charges but a low rate of interest, offered to people whose salary or wages are a certain amount.

Grace period - A period after a premium payment is due on an insurance policy (but where a policyholder is late making the payment), during which the policyholder can make the late payment without losing the protection which the insurance policy provides.

Gross interest - interest earned on savings before income tax deductions are taken into account.

Ground rent - an annual fee paid by the leaseholder to the freeholder.

Guaranteed growth bonds - Fixed term investments, typically between 3 and 5 years, where you invest a lump sum and are guaranteed either a minimum amount of money at the end of the period, or that you won't lose the original amount you invested.

Guaranteed Income Bonds - A type of insurance policy where you pay a single upfront premium, and which then pays out money at regular intervals over a fixed period of time, and at the end of which the premium is returned.

Health insurance - insurance cover providing financial protection in the event of sickness or injury.

Hedging - A strategy used to protect against risks involved in investments.

Higher rate tax - Under U.K. income tax regulations, bands of personal income are taxed at different rates. The highest rate of income tax is currently set at 40%.

High-interest cheque account - An account that pays interest at a rate similar to a savings account but also offers a cheque-book facility.

High-lending fee (mortgage indemnity guarantee) - An extra charge made by lenders on loans that are more than 90% of the value of a property.

Home insurance - insurance to protect a policyholder's home. The insurance can be buildings insurance, where the outside of the home is covered, or contents insurance where the contents of your home are insured against theft or damage.

Homebuyer's report - an optional professional survey carried out to check the structure of the property. This is more thorough than a valuation, but less detailed than a structural survey.

HP - Hire Purchase - a method of paying for an item where the buyer effectively 'hires' the item over a fixed period of time, often used as an alternative to a car loan.

IASA - Instant Access Savings Account.

IFA - Independent Financial Adviser - a qualified consultant who gives independent advice on all financial products.

Illustration - An estimation of the returns you might get from an investment, based on specified growth rates and taking into account any extra charges or fees which you might have to pay.

IMRO - No longer exist all under FSA.

In arrears - Money which you owe but have not paid in time.

Income multipliers - a calculation used by mortgage lenders to work out the maximum you are allowed to borrow based on your income.

Income protection insurance / policy - see Accident, sickness and unemployment (ASU) cover.

Income tax - tax paid on income within a given financial year (April-April).

Income share - A share in an investment trust for investors who want to earn an income.

Indemnity policy - Home contents insurance that only covers you for the second-hand value of you possessions.

Index Linked - Money (usually premiums and/or benefits on an insurance policy) which rises (or falls) automatically each year in line with inflation.

Index Linked Certificates - A form of government National Savings in which the rate of interest is fixed at a certain level which is related to the rate of inflation.

Index Tracking - A type of investment fund that follows a particular index as closely as possible. It removes the need to employ expensive fund managers, which means charges tend to be lower. The value of the investment will go up and down in line with the index which it is matching.

Indexation - A method by which payments or benefits go up or down in line with an index of prices or earnings.

Individual Savings account - A type of savings or investment account which is exempt from income and capital gains tax. You can use it to save cash or to invest in stocks and shares.

Inflation - the percentage increase or decrease in prices each year.

Inheritance Tax - IHT - This tax is payable at the time of death on money, property, investments and other assets (e.g. - valuable paintings).

Initial Charge - A one-off charge deducted from your investment money when you first invest in an investment or unit trust.

Inland Revenue - The Inland Revenue is the government department responsible for the assessment and collection of direct tax on income, capital gains, stamp duties, companies' profits and inheritance tax.

Instant Access Account - A savings account that allows you to withdraw money whenever you want without penalty.

Insurance (more) - The act, system, or business of providing financial protection against specified contingencies, such as death, loss or damage.

Insurance premium tax -Tax imposed on most insurance policy premiums (it does not apply to life insurance policies).

Insured - A person or organisation covered by an insurance policy.

Insurer - The party to an insurance contract who promises to pay losses or benefits, usually an insurance company.

Intermediary - A person or organisation that offers advice and arranges policies for clients.

Interest - The charge made for borrowing a sum of money.

Interest bearing current account - A bank or building society account offering a chequebook and cash card, and paying interest on the account balance.

Interest free credit - A type of credit offered by stores where you pay for your purchases in equal installments over a set period of time, usually 6 to 12 months, and on which no interest is added.

Interest only mortgage - a mortgage where repayments cover interest accrued on the loan alone. The balance of the mortgage remains fixed until the end of the term when repayment is due in full, usually using funds built up through an endowment policy or other investments taken out at the start of the mortgage.

Intestate - Not having made a will before your death.

Investment income - Income earned from investments, including interest and dividends on stocks and bonds.

Investment trust - an investment made by a listed company into another company, where shares are sold on investors.

IPT - Insurance Premium Tax - a tax levied on all general insurance in the UK .

ISA - Individual Savings Account - savings account with tax benefits. Savings can be made through cash deposits, stocks and shares or insurance.

ISA mortgage (more) - an interest-only mortgage that is linked to a savings fund, designed to repay the mortgage at the end of the term.

Joint funding - Where several people or organisations jointly contribute money to a project.

Joint Life Annuiety - An annuity contract (usually a type of pension) that pays out money during the joint lifetime of two people.

Key person insurance - Insurance designed to protect a business against the loss of income resulting from the disability or death of an employee in a key position, on whom the operation and viability of a company depends.

Knock for Knock - An arrangement between motor insurance companies where each company pays for its own clients' claims and does not claim money from the other company, even if the driver at fault is insured with the other company.

Land registration - record listing a plot of land's registered owner and any legal charged attached to it.

Lapse - The termination of an insurance policy because you haven't paid the premium(s) on it.

Lapsed policy - An insured policy which has been terminated because you haven't paid the premium(s) on it.

Lease - A contract by which the owner of property (which can be a building, a car, an item of machinery, etc) allows another person to use it, in return for rent being paid.

Lease back - A method of raising money in which an organisation sells its land or buildings to an investor on condition that the investor will lease the property back to the organisation for a fixed term at an agreed rental.

Lease hold - If you buy a property that is leasehold it means that you own the property but not the land the property is on.

Legacy - A gift left in a will.

Lender - The person or institution (most usually a bank or building society) that lends you money.

Lessee - A person who is granted a lease - i.e. - a person who rents a property (or other type of asset) from someone.

Lessor - A person or organisation who owns a property and rents it to another person or organisation, under the terms of a formal Lease Agreement.

Level term assurance - a type of life assurance that pays out a cash lump sum if the policy holder dies during the term of cover.

Level term insurance - A type of insurance policy where the amount of insurance cover provided by the policy remains the same from start to end.

Life insurance - insurance where a policyholder's dependents receive a cash lump sum if he or she dies.

Liability - A debt.

Life insurance - A type of insurance which pays out a lump sum to your dependants if you die.

Life insurance ISA - An ISA that allows you to invest in life insurance investments without paying tax on the money you make.

Loss adjustor - An independent person who may be used by an insurance company to assess the value of a claim you make on your insurance policy.

Low cost endowment - A savings plan that includes decreasing term insurance, a type of insurance policy where the amount that the policy pays out reduces over time.

Lower earnings limit - The minimum amount you must earn before you pay National Insurance contributions on your wages or salary.

Loyalty bonus - special schemes designed for existing mortgage customers offering benefits such as reduced interest rates, low fees, etc.

Lump sum -An amount of money, paid in one single amount - as opposed to receiving or paying the money in installments.

LVT - Loan to Value - the amount of a mortgage expressed as a percentage of the value of the property's value or what you pay for the property.

Market Capitalisation - The value of a company as measured by the total stockmarket price of its shares. In simple terms, the number of shares times the share price.

Maturity data - The end date of a policy or loan, when money is paid out or becomes due.

Maturity value - The amount of money to be paid, or paid out, at the end of a policy or loan.

Maxi ISA - A tax-free savings account in which you can invest up to £7,000 each year tax-free. You can invest either the full amount in stocks and shares or up to £3,000 in cash savings and up to £1,000 in life insurance investments.

Maximum investment plan - A Unit Linked Endowment Policy specifically intended for savings. The plan incorporates life assurance cover.

Managed fund - Atype of investment where a number of investors pool their money into one fund which is then invested by an experienced fund manager.

MER - Medical Examiners Report - A report by a doctor on a person's health and fitness, sometimes required by insurance companies before they will insure you.

Mezzanine Financing - A type of equity financing used in takeovers. It uses preferred shares and convertible securities to make a target firm larger.

MIB - Motor Insurers Bureau - An organisation funded by motor insurance companies which deals with claims for injury compensation when the driver at fault is not insured, or cannot be traced.

Mid price - The price of shares as quoted in newspapers, midway between the prices which the shares are bought and sold at.

Mini ISA - A tax-free savings account that allows you to invest up to £3,000 each year in cash savings or stocks and shares or up to £1,000 in life insurance investments. You can have one of each type of mini ISA in each tax year.

Minimum income guarantee - This is the minimum level of income the government guarantees you will receive if you are over 60. If you have less than this level of income, the government tops it up. From October 2003, it will be placed by Pension Credit.

Mitigate - To lessen or make less severe. For example, if your house is flooded, you would attempt to mitigate the damage by doing all you could to protect your home.

Momentary Policy - Government influence on the direction of a country's economy by controlling the amount of money available to the public, companies and organisations to spend.

Money Purchase Scheme - A pension scheme which provides a pension, the amount of which is dependent on how much money has been invested in it, and how much investment return has been earned from that money.

Moratorium - A period during which an insurance company is not obliged to pay out on an insurance policy.

Mortgage (more) - a loan to purchase a home, where the property is used to guarantee repayment of the loan.

Mortgage Calculator (more) - normally online software that calculates your repayments and gives the total interest paid on the loan. Mortgage indemnity insurance (more) - A payment to a mortgage lender so they can take out insurance if you are borrowing more than a certain percentage of the value of your home.

Mortgage payment protection (more) - Pays your mortgage for a limited period if you can't work or are made redundant.

Mortgage rate (more) - the standard interest rate given by mortgage lenders, which tends to reflect rises or cuts to the Bank of England base rate.

Mortgage valuation - A valuation, carried out by your mortgage lender, of the property that you want to buy.

Mortgagee - the company (or other entity) that lends money on a mortgage.

Mortgagor - the person who is taking out the mortgage.

Mutual - A commercial organisation owned by its members (savers and borrowers), as opposed to being owned by shareholders.

National Insurance - a tax levied on wages and salaries in the UK which is used to finance state benefits.

National Insurance Contributions - A form of tax on your salary or wages, used to fund certain state benefits. The tax is paid by most employers, employees and self-employed people.

National Savings - Tax free savings accounts run by the Government.

Negative equity - where the value of your property is worth less than the money owed on the mortgage.

Net interest - The interest you earn on your savings after tax at basic rate has been deducted.

Negative Equity - When your house is worth less than your mortgage because the value of the property has fallen.

New for old Policy - Contents insurance that covers you for the cost of replacing your possessions with new ones.

No claims bonus/discount - where a discount is awarded to policy holders who have not claimed on insurance, for example, when drivers do not claim on their car insurance.

Non Cancellable - A contract that the insurer cannot make changes to or cancel, as long as you pay the premiums.

Non Contributory - A term applied to employee pension or insurance schemes when the employer pays the full cost and the employee is not asked to contribute.

Nominee share - A share with no share certificate; instead, the share is held in a 'nominee' account by a broker.

Normal pensions age - The age at which a member of a pension scheme normally becomes entitled to receive their pension.

Nothing to pay for a year deals - A type of store credit for which you must pay off the entire amount owed at the end of the year - if you don't, you'll be charged a high rate of interest.

Notice discount - A savings account where you must give 30, 60, 75 or 90 days' notice before you can withdraw your money. You can usually withdraw your money earlier, but forfeit interest or pay a penalty.

Occupational pension scheme - a pension scheme set up for employees by an employer.

OEIC - Open Ended Investment Company - a type of unit trust that has converted into a company.

Offer price - The price at which you can buy shares from a company or investment manager.

Offset - To set one amount against another, such as a loss against a profit or a repayment against a debt.

Offset mortgage - Offset or all in one mortgages allow you to offset the balance of your mortgage, and any other borrowings you have, against any money you have in a savings and/or current account that's held with the same lender. All your borrowings and savings may be combined in one account.

Offshore banking/savings - a bank account that is held overseas. For UK residents, offshore accounts are often held in places like the Isle of Man and the Channel Islands.

Ombudsman - An independent official to whom grievances can be aired, free of charge.

Opinion Status Inquiry - A reference given by a bank or building society to confirm a customer has run their account responsibly.

Opting Out - The decision by an employee to leave or not join a pension scheme provided by his/her employer.

Options - An agreement to buy or sell a share at a specific price at a specific date in the future.

Ordinarily resident - If you are resident in the UK year after year, you are said to be "ordinarily resident".

Other income - This is a "catch all" term to ensure that you declare all your taxable income which you have not already entered anywhere else on the Tax Return.

Outgoings - Monies you have to pay to someone else, such as your monthly mortgage, rates, insurance premiums, food and drink costs, etc.

Overdraft - When you owe money to your bank through your current account.

PA - Per Annum - Another term for per year.

Package account - A bank account that charges you a monthly fee whether you are in the red or not.

Paid up insurance - Insurance on which all required premiums have been paid.

Partial disability - A disability that is less than total (according to the particular definition relating to the contract in question) but still sufficient to hamper you in your job.

PAYE - Pay As You Earn - a system whereby income tax is automatically deducted from wages and salaries by employers on behalf of the Inland Revenue before employees are paid.

Payment holiday - A feature offered by some mortgages that allow you to miss monthly payments on your mortgage.

Payment protection - A type of insurance to cover your monthly repayments on a credit card or loan should you lose your job or be too ill to work.

Pay out period - How long an insurance policy continues to pay out for.

Pension (more) - A regular payment made to a person of a certain age. Payments may be made by the state, previous employers or by provision of a private fund set up by the person in question.

Pensions credit (more) - To be introduced in October 2003, this replaces the Minimum Income guarantee. This will provide a minimum guaranteed level of income, but also rewards people with modest sums set aside for retirement and private pensions.

Pension transfer (more) - If you want to transfer your pension from one management company to another, or from one employer to another.

Pensionable age (more) - The age at which you become entitled to the government Basic State Pension.

Pensionable Service - The length of time you worked for an employer that is used in calculating pension benefits from a pension scheme.

Pensioner - A person who has retired and receives an income from a pension scheme.

PEP (Personal Equity Plan) - a tax free method of acquiring unit trusts or shares. Withdrawn from sale in April 1999.

Per Annum - Another term for per year.

Per Capita - Per person.

Permanent total disability - Disability from which you are unlikely to recover at any time in the future.

Permanent Health Insurance - Provides an income, until retirement if necessary, if you can't work because of sickness or disability.

Personal Contract Plan - A type of car loan where you effectively hire a car from the lender; usually you pay a deposit, and pay regular payments to the lender.

Personal Loan - A loan which you take out as an individual, with a fixed interest rate and a fixed number of repayments.

Personal Pensions - These are pensions for individuals. These preceded stakeholder pensions as a way for individuals to invest for their own retirement if they did not have any company pension scheme, or were self employed. These are still available.

PLC - Public Limited Company - A company that has shares available for the public to buy.

Pet Insurance - A type of insurance that helps pay vets' bills and other pet related costs.

Policy - The full details and terms of an insurance contract.

Policy Term - The length of time that an insurance policy lasts.

Policy holder - A person or organisation that takes out an insurance policy.

Pre-Existing Medical Conditions - Medical conditions that exist at the time you take out an insurance policy, or for which you have received treatment within a specified time.

Premium - The amount you pay for insurance cover.

Private medical insurance - a policy that covers the policyholder for any bills arising from medical or hospital treatment.

Probate - The process by which the will of someone who dies while living in England or Wales is validated.

Pro rata premium - A rate charged for a period of insurance cover shorter than the normal period.

Public company - a company that is listed on the Stock Exchange. The company's shares are available for the public to invest in.

Purchase protection - A service offered by some credit-card companies that insures you against theft or accidental damage to the item you purchased, often for up to 90 days after purchase.

Quotation - An illustration provided by an insurance company to show the costs of insurance cover, before you buy it.

Quoted company - see Public Company. Any company that is trading on the stock market.

Rate - The cost of a given unit of insurance.

Rate Review - The point at which an interest rate or premium is reviewed, when it may go up or down, or stay the same.

Rated - When insurance cover is given, but at a higher cost than normal, usually due to a medical problem which might mean you could die earlier than most other people.

Rebuild Value - What it would cost to rebuild your home from scratch.

Redemption amount - The amount that would be redeemed if you held the assets for their full term - to their redemption date.

Redemption penalty - The amount of money you will be charged if you wish to switch lender or pay off part of your mortgage during, and sometimes after, an initial cheap-rate period.

Redemption Yield - An estimate of the total long term returns, including income and capital, on fixed income investments like corporate bonds and gilts.

Redundancy protection Insurance - Insurance that continues to meet mortgage payments, usually for a limited period, if you are made redundant.

Refinancing - The process of repaying some or all of the loan capital of a firm by obtaining fresh loans, usually at a lower rate of interest.

Reinsurance - The practice whereby one insurance company transfers part or all of the risk it has accepted to another insurance company (the reinsurer).

Remortgage (more) - a new mortgage taken out without the mortgagor moving home.

Repayment mortgage (more) - when monthly payments repay both the outstanding capital on the mortgage and any interest accumulated.

Replacement value - the amount it costs to replace an item in the event of an insurance claim.

Repossession - This is when a borrower fails to pay back their loan in accordance with the terms and conditions of their loan and the lender takes legal ownership of the property, usually ejecting the people who live there.

Retention - The amount of risk retained by an insurance company and not reinsured.

Rider - An amendment to an insurance policy that modifies the policy by expanding or restricting its benefits or excluding certain conditions from coverage.

Rights Issue - A means whereby a company may raise extra money from its own shareholders.

Risk - The likelihood, in the insurer's opinion, of your making a claim.

Savings bond - a type of savings account where a high rate of interest is paid but cash is tied up in the account for a set period of time.

Savings Certificates - A form of National Savings that pay a fixed rate of interest over a set term.

SAYE - Save As You Earn - a scheme that allows employees to save for the purchase of shares in the company they work for.

Searches - a series of checks made with local authorities that are carried out during the conveyancing of a house. Checks include any proposals for planning or any other matter that may affect the property's value or its sale in the future.

Sector - This refers to how funds are grouped. For example, a fund may be grouped by the country it invests in, or the industry it invests in, or the type of fund it is.

Secured loan - a type of loan where an asset, usually a property, is used to guarantee repayment.

Self Certified Mortgage (more) - A Mortgage where you give a self assessment of your income. No income references from your employer or your accountant are required.

Self Select - An ISA that invests in stocks and shares selected by you, the investor.

Settlement - Scottish term for the completion of a property.

SERPS - State Earnings Related Pension Scheme -the part of your pension from the state which provides benefits which are additional to the basic state pension, based on how much extra money you contributed from your earnings.

Share - A legal document that makes its holder a part owner of the company that issues the share.

Share Club - a group of investors who pool money to buy shares.

Share Holder Pack - An incentive given to shareholders by companies to promote loyalty.

Share Option Scheme - A scheme giving an employee the right to buy shares in the company in the future but at a price fixed now.

SIB - Securities and Investments Board. A financial services industry regulatory organisation, and now part of the Financial Services Authority.

Sickness and Accident - Pays you a benefit if you are unable to work through sickness or accident. Normally pays out for a set period, such as one or two years.

SIPP - Self Invested Personal Pensions - A kind of pensions where the investor has a degree of control as to how their funds are invested.

Sheriff Court Judgement (Scotland) - Awarded against you if you are summoned to court over a debt and either don't turn up or lose the case.

Special Presentations - A service from a bank to inform a customer paying in a cheque that the payer's bank will make the payment. This does not reduce the time taken for the cheque to clear - this will still take three working days.

Spread (Bid offer Spread) - The difference between the buying (Offer) and selling (Bid) prices of shares.

Stakeholder Pension (more) - A low cost, flexible type of pension. These meet strict government guidelines, on access, charges and terms.

Stamp Duty - a tax payable by the buyer of a property, calculated as a percentage of the sale price.

Standard Variable Rate - The mortgage interest rate charged by most lenders, which varies in line with rises and falls in the Bank of England base rate.

Standing Order - A pre authorised payment in which the customer gives instructions to their bank to pay fixed sums at regular intervals or on defined dates.

State Pension (more) - The basic state pension is paid to everyone. The level of pension you get depends on the amount of National Insurance contributions you pay over your working life.

State Second Pension (more) - Known as S2P, this additional state pension is paid in addition to the basic state pension. It replaced SERPS in April 2002, and now the additional pension can by built up carers, the long-term disabled and those on low incomes as well as employees (but not the self-employed). You may get a State Second Pension, even if you do not get any basic state pension.

Stock market - place where shares and equities are traded, usually by stockbrokers.

Stock Broker - Someone who advises on which shares to buy and buys them on your behalf.

Stocks and Shares ISA - An ISA that allows you to invest in stocks and shares without paying tax on the money you make.

Store Card - A card that lets you buy goods on credit at a particular shop or chain of shops.

Sum Insured - The amount an insurance policy pays out.

Surrender Value - The amount of money paid to the holder of an insurance policy by the insurer when certain types of life policy are discontinued before the full benefit becomes payable.

Tax Allowances - Amounts deducted from your total income to calculate your taxable income.

Tax Credit - The amount that an ISA manager can reclaim from the Inland Revenue in respect of share dividends received.

Temporary Absence - A period during which a member of a group insurance scheme can be away from work and continue to be covered by the insurance.

Term - the length of time over which a loan or mortgage is repaid.

Term Insurance - The most popular form of life insurance, paying out a tax-free lump sum if you die within a specified period.

Terminal Bonus - Additional bonus that may be paid when a claim arises under a with-profit policy, either at maturity or on death of the policyholder.

TESSA - Tax Exempt Special Savings Account - A form of tax-free saving, withdrawn in April 1999.

TESSA Only ISA - An ISA savings account that provides a tax-free home for capital from a mature TESSA.

Testate - A person who has made a valid Will.

Third Party Only - Car insurance covering you and your passengers against claims for any damage you cause to another person or their property in an accident.

Third Party Fire and Theft - Car insurance covering you if your car is stolen or damaged in a fire. Also provides cover for you and your passengers against claims for any damage you cause to another person or their property in an accident.

Tiered Rate - An interest rate that varies. Oftern depending on how much is deposited in an account, and other parameters.

Tiered Mortgage rate - A mortgage interest rate that varies. Oftern depending on time since the account was opened, and other parameters.

Title - A legal right or document proving legal right.

Title Deeds - Documentation proving ownership of a leasehold or freehold property.

Total Borrowing - The total amount you've actually borrowed on your account.

Total Disability - The inability to do your job or manage aspects of your normal day-to-day life.

Tracker Account - A savings account with an interest rate that tracks changes in general interest rates.

Tracker Find - A type of unit trust that tracks a stock market index such as the FTSE 100.

Tracker Mortgage - Tracks movements in the Bank of England base rate so that you benefit quickly from a fall in interest rates.

Transfer Deeds - a document that transfers ownership of a property to the signatory.

Transfer Fee - May be charged by your current insurer if you transfer to a different insurer.

Transfer Payment - Payment of a lump sum for the value of an employee's pension rights, from one Pension Scheme to another Pension Scheme, or to a Buy Out Policy.

Transfer Value - Instead of receiving a pension when leaving a work pension scheme, a member has the right to transfer the pension value to a scheme operated by a new employer or a personal pension plan.

Travel Insurance - a type of insurance taken out by holidaymakers or travellers to cover them in case of cancellation, loss, theft or costs incurred through medical bills. Can be taken out for specific activities, for example, ski insurance.

Trust - A legal arrangement whereby assets are held by one or more appointed persons (trustees) for the benefit of others (beneficiaries).

Trust Deed - A legal document that establishes and governs the operation of a trust.

Underwriter - A technician trained in evaluating risks and determining rates and coverage for them.

Underwriting - Where an insurance company takes into account known facts like your age, sex and health, in order to assess the likelihood of you making a claim on the policy.

Underwriting Decision - A decision made by insurance underwriters based on evidence supplied.

Unit Linked Endowment - A fixed term savings plan with an element of life cover. Your savings go into an underlying fund of investments like shares and the eventual return you get depends on the performance of these investments.

Unit trust - a stock market linked investment often used as collateral to repay an interest-only mortgage.

Unlimited Cover - Buildings insurance paying out as much as necessary to rebuild your home (although some policies do have an upper limit).

Unsecured loan - a personal loan where no collateral is needed to guarantee repayment.

Upper Earnings Limit - The maximum earnings on which National Insurance contributions are payable by employees.

Utmost Good Faith - The principle of insurance that requires you to give all relevant information to the insurance company.

Valuation - a check carried out by a professional surveyor to ensure a property is worth its asking price and is appropriate for approval of a mortgage.

Variable rate - when the interest rate payable against a loan or mortgage can go up or down.

VAT (Value Added Tax) - an indirect tax that is levied on most purchases.

Volatility - The degree by which share prices in a particular stockmarket or sector go up or down.

Voluntary Scheme - A pension or other benefit scheme in which the members choose the extent and levels of benefits provided.

Vendor - the person or party selling a property.

Wavier of Premiums - A 'holiday' from paying premiums, perhaps granted during a period of sickness.

Whole of Life Insurance - An insurance policy which pays out a lump sum when you die.

Will - A legal document specifying how your property and money is to be dealt with when you die, and appointing Executors to carry out your instructions.

With Profit Bond - An investment plan that awards an annual bonus to investors, who may also choose to take a regular income.

With Fixed Profit Endowment - A fixed term investment with life cover.

Written Premiums - The total premiums on all policies written by an insurer during a specified period of time.

XD - Ex-dividend - this is the interval between the announcement and payment of the next dividend from a company

Yield - the total income made on an investment once charges have been deducted. Please note that these charges do not include tax.

Z - Sorry no listings.