Dictionary of Financial Terms -
- The pricing factor upon which an insurance premium is based, it is
the cost of a given unit of insurance.
- Rate Review
- Used in group insurance to describe the review of premium rate at
the end of a rate guarantee period.
- Describes coverage issued at a higher rate than standard, usually
due to impairment of the insured life.
- Received Date
- The date the contribution was credited to the account by the
Charitable Gift Fund for tax purposes.
- For all our mortgages, if you pay off the whole or any part of the
loan before the end of the mortgage term, you will have to pay a redemption charge. This will be the amount specific to
the mortgage product specified on the relevant web page and in our brochures. There will also be an Administration fee
at redemption. If you decide to redeem your Standard Variable Rate mortgage, you would only pay an administration fee.
Fees applied in addition to any interest charges at the time the mortgage is redeemed are charged to cover our
reasonable administration costs. These include retrieving and checking the Deeds and Documents, formal sealing,
recording of documents sealed and secure postage. (Please note that with some products, for example the Base Rate
Tracker products, certain specific criteria apply allowing part repayment without a charge.)
- Redemption amounts
- The amount that would be redeemed if you held the assets for their
full term - to their redemption date.
- Redemption penalties
- If you want to pay off your mortgage early, you may have to pay a
fee during the early years of the loan. The fee may be equivalent to a certain number of months' interest, or it could
be a percentage of the loan. Some lenders only charge a redemption penalty during the time of the special deal they
offer. Others may tie you in for a number of years afterwards. If you think you may want to repay early, check what
conditions apply before you decide which type of mortgage you want
- 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.
- The practice whereby one insurer transfers part or all of the risk
it has accepted to another insurer (the reinsurer).
- This is when you switch your mortgage from your current lender to
another one. You take out a new mortgage to repay your current one. You may be able to get a better rate that saves you
- Renewable Term Insurance
- Term insurance providing the right to renew at the end of the term,
without evidence of insurability. The premium rates may increase at each renewal as the age of the insured is
- An agreement to continue insurance beyond any original term. For
group insurance it is often used to refer to the annual update of membership details and production of annual
- Repayment (Capital & Interest)
- One of two ways used to pay off your mortgage, the other being the
Interest only method. Your monthly payments are used not only to pay the interest on your borrowings but also a
proportion of the actual amount borrowed. At the end of the term, both the borrowing and interest on this borrowing
would have been paid in full.
- Repayment Mortgage
- Your monthly payments are partly to pay the interest on the amount
you borrowed, and partly to repay the amount you borrowed. At the end of the mortgage, the capital and the interest is
all completely repaid. It is also known as a capital and interest mortgage
- Repayment plan
- A schedule you agree with us for repaying your One account
borrowings over the mortgage term. Your monthly One account statement will help you to keep track of whether you are
ahead or behind your repayment plan.
- This is when a borrower fails to pay back their loan in accordance
with the Terms and Conditions of that loan and the lender exercises their legal charge over the borrower's property by
taking legal ownership.
- Termination of an insurance contract by the insurer on the grounds
of mis-statement by the insured.
- The sum set aside by an insurance company as a liability to fulfil
- Restricted Funds
- Grants which are made for a clearly specified purpose and can be
used for none other.
- The amount of risk retained by an insurance company and not
reinsured. Also used in reference to the portion of premium that is used by the insurance company for administration
- A process by which a reinsurer obtains reinsurance from another
- Reversionary bonus
- A bonus added to the value of your With Profits policy each year.
- 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 capital from its own
shareholders. It does this by offering additional newly-issued shares to the shareholders at a discount on the price at
which they will later be offered to the public, usually on the basis of a certain amount of new shares for every old
share held. Most rights issues are handled by investment bankers who also underwrite the issue by agreeing to buy any
of the newly-issued shares which are not taken up by shareholders.
- Running yield
- An estimate of the annual rate of interest paid out by fixed income
investments like corporate bonds and gilts. It doesn't take into account any increases or decreases in the capital
value of the investment.
© APT Finance. All Rights Reserved
| Legal Disclaimer |