Dragon Finance Jargon Compendium

The world of Finance is full of buzz words and Jargon. In this section I'll translate a whole rack of finance terms so you won't get caught out.

Go direct to: A-B | C-D | E-G | H-L | M-P | Q-S | T-Z

This is my Index of Mortgage and Loan terms beginning with the letters T to Z.

::Tenant Loan
A Non-Homeowner or Tenant will take out an unsecured loan because they have no home to act as security for the Loan. This is a Personal Loan for Tenants and Non-Homeowners. Interest Rates are usually higher than Secured Loans but Dragon Finance aims to find you a competitive rate Tenant Loan or Unsecured Loan.

::Term
The length of time in years which you take out to pay back your mortgage. Most commonly people take out a term of 25 years but it could be 5 years if you borrowed a small amount.

::Tracker Rate Mortgage
Tracker rates are set a % above the Bank of England Base Rate. This is similar to a variable rate mortgage, so your monthly repayment can go up or down. So as the Bank of England rate changes you will receive the change immediately unlike a Variable rate that may not fluctuate as much.

::UK
Dragon Finance only deals with UK (United Kingdom) Applications. This covers England, Scotland, Wales and Ireland.

::Underpayments
As long as you have previously made overpayments some mortgages allows you to pay underpayments for a limited period. So you could pay more why you have it to pay off your mortgage quicker or prepare for a short time when you will struggle and so you can reduce your monthly payment.

::Unsecured Loan
A Non-Homeowner or Tenant will take out an unsecured loan because they have no home to act as security for the Loan. This is a Personal Loan for Tenants and Non-Homeowners. Interest Rates are usually higher than Secured Loans but Adverse Monkey aims to find you a competitive rate Tenant Loan or Unsecured Loan.

::Valuation Report
Lenders arrange a valuation to find out the value of the property you require the mortgage on. They will ascertain if the agreed asking price is above or below the value and lend on the lowest of the two figures.

::Variable Rate Mortgage
A variable base rate is a level of interest charged by lenders that depending on current market conditions can go up or down. So your interest rate on your mortgage could be within your budget and then if the market changes the interest rate could rise stretching finances. The best tactic is not to borrow to your limit but at a level that you can cope with fluctuations in interest rates.

:: Wedding Loan
This can be a Secured Loan if you're a Homeowner or an Unsecured Loan if you're a tenant. An average church wedding with all the trimmings can cost about £10,000. A wedding loan can be used to make your or  your daughters special day a memorable one.