Net Interest – After tax at the basic rate has been deducted this is the interest on your savings.
Offset - Offset mortgages set your money in savings or current account against the mortgage balance and interest is only charged on the outstanding amount meaning interest payments are reduced and your mortgage can be paid off faster.
Personal Loan – A Personal Loan is when a person borrows money from a financial institution or other type of lender for personal use such as the purchase of a holiday or a car. A Personal Loan can be Unsecured or Secured.
RPI - The index of the average price of consumer goods and services used to measure the rate of inflation is called the Retail Price Index. Unlike the CPI it includes housing costs such as council tax, mortgage interest payments, etc.
Secured Loan – This is a loan which is backed up by assets belonging to the borrower, normally a property. This minimises the risk of losing money by the lender as a result Secured loan will have a lower APR than an unsecured loan. If you have a Secured Loan and do not maintain your repayments your home is at risk of repossession.
Self Assessment – All taxpayers in the UK are obliged by law to maintain records of all income and all types of capital gains. People who are self-employed or those with complicated tax affairs or income from several sources may have to complete one.
Student Loan – Student loans are offered to students to help with the payment of costs of professional education. The loan does not have to be repaid until the April of the year after the course has been completed and the salary exceeds the threshold level of £15,000 a year. The interest rate is updated annually and linked to the rate of inflation. The payments are adjusted according to the gross income of the payee through the tax system ICR (Income Contingent Repayment).
Term Assurance – This is Life Insurance which provides coverage for a specified period.
Unit Trusts – Unit trusts are a collective investment where a large number of investors pool their money together. Funds that are usually invested in are stocks and shares but they can include cash, bonds and gifts. The capital invested and the level of income is not guaranteed and you might get less back than what you invested.
Unsecured Loan – Repayments are more than for a Secured Loan, but the borrower does not use his or her home as security.
Working Tax Credit – Working Tax Credit is a payment made to working people on a low income to top up their earnings. It can be claimed by parents or non-parents. For families, Working Tax Credit can pay towards the cost of childcare if the parent/ parents work for at least 16 hours a week.