Glossary - R
- Redemption
- Paying off the mortgage by moving home or reaching the end of the mortgage term.
- Redemption Charge
- These is the charge levied by a lender when the mortgage loan is repaid before the end of the full term. See also early redemption penalty.
- Redemption Statement
- The outstanding amount to be repaid on an existing credit arrangement.
- Redundancy Insurance
- This is also included inn accident, sickness and unemployment insurance. This insurance cover that is arranged by the borrower to protect against the inability to meet mortgage payments. This cover is generally restricted to cover only events that are entirely beyond the control of the insured person. Exclusions include dismissal following professional misconduct and any act of voluntary redundancy.
- Refinancing
- Borrowings which are rearranging with a different lender, usually to receive more attractive terms or to raise fresh capital.
- Regular Earned Income
- A payment which is not guaranteed but is still a regular part of an employees remuneration. Normally lenders will ask for evidence of such payments being made on a regular basis, e.g. Payslips or p60s covering a period of months or years.
- Remortgage
- The changing of a mortgage loan from one lender to another whilst still residing at the mortgaged property. The old mortgage is repaid from the new mortgage and any extra amount borrowed is given to the borrower to make home improvements for instance.
- Repayment
- Payment made to cover interest or reduction in principal of a mortgage.
- Repayment Period
- The time left to repay a loan
- Repayment Plan
- If you fall behind on your payments a lender may try to renegotiate your repayment plan.
- Repayment Term
- The time frame that the borrower must repay the lender.
- Restructured Loan
- When a lender offers renegotiated terms.
- Retired
- Where the individual is no longer working.
- Retirement Annuity Contract
- Investing a lump sum which produces a regular income for a retired person.
- Retrieval Cost
- Cost that your lender incurs when recovering items or debt.
- Right To Buy
- This is where council tenants can purchase their council property in which they live in. The price of the property is often at a discount, proportional to the length of occupancy.
- Royal Institute Of Chartered Surveyors
- The professional body for surveyors which sets a code of practice for its members.
- RTB
- Right To Buy
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