IFA
|
top
|
| Independent Financial Advisor is an advisor
who has no affiliation with any 1 financial company. |
IG Premium
|
top
|
| See High Loan to Value Fee |
Illustration
|
top
|
| Quote giving monthly payment and fees etc
regarding a financial product |
Impaired Credit
|
top
|
| When a person has adverse credit |
Income Reference
|
top
|
| Third party conformation of income |
Income Protection Insurance
|
top
|
| Insurance that pays an income to pay mortgage
payment in the event of sickness |
Individual Saving Accounts (ISA)
|
top
|
| A tax-efficient plan launched in April
1999 to replace Personal Equity Plans. Permits investment in stocks
and shares, cash deposits and insurance. |
Individual Voluntary Arrangement (IVA)
|
top
|
| IVA was introduced under the insolvency
act 1986 with the intention of allowing an individual to avoid bankruptcy and
make maximum possible restitution to creditors. An IVA is seen as preferable
to bankruptcy as the debtor can retain his tools of trade and,
in the case of a professional person, continue to practice, or hold
company directorships. IVA's can be set up for either a person or a
company. An insolvency practitioner petitions the high court for protection
for a borrower debtor under an IVA. A proposal is put to the creditors
of whom 75% must accept. If this is achieved, the arrangement becomes
binding upon debtor and all creditors named in the agreement. If the
debtor fails to meet payments under an IVA the insolvency practitioner
is likely to petition for the individual to be made bankrupt. Whilst bankruptcy normally
lasts for only three years some creditors insist that IVA's last a
longer period. |
Inflation
|
top
|
| This is an increase in earnings or prices,
which change in accordance with price inflation, and the national average
earnings. |
Inheritance Tax
|
top
|
| Tax payable on your estate when you die
and possibly on certain gifts during lifetime if in excess of the nil
rate band For the tax year 2004/2005 the tax is 40% above £263,000. |
Initial Rate
|
top
|
| This is the payment of interest to cover
the period between the date of completion and the normal date from
which an interest payment is due. For example if mortgage payments
are normally due on the 30th of a month and the loan completes
on 14th march, the first monthly payment may be due one month from
30th march, on 30th April. Any interest due for the period from completion
until 29th march will be due with the initial mortgage payment. Therefore,
the borrower's first mortgage payment will normally comprise one full
month's payment plus the initial interest. |
Insurance
|
top
|
| Accident , sickness & unemployment
(ASU) insurance cover arranged by the borrower to protect against inability
to meet mortgage payments. This cover should more accurately be described
as accident sickness and redundancy insurance as unemployment cover
is generally seriously restricted to cover only events that are entirely
beyond the control of the insured person. Typical exclusions include
dismissal following professional misconduct and any act of voluntary
redundancy. The accident and sickness cover will also be subject to
major restrictions such as any act of self-injury or any injury related
to the use of alcohol or drugs. Buildings Insurance covers the
structure of the building, which is compulsory. Where the property
is leasehold the buildings Insurance will normally be
arranged by the freeholder and the cost charged on to the leaseholder
within the service charges payable. Contents insurance, this is the
insurance of property within your home i.e. Furniture, clothing, personal
possessions etc. As distinct from the buildings insurance. General
insurance companies identify different types of insurance policy as
falling into different branches. For instance the life branch covers
the insurance of people and is generally known as life assurance. The
insurance of property is known as personal lines. Term, simplest form
of life assurance. The insured person or persons are covered against
death within a fixed period subject to the payment of the premiums,
which is normally monthly or yearly. If an insured person dies within
the policy term the sum assured is paid out. If all insured persons
survive the term the premium has been spent and the insurance ends
with nothing being paid to the policyholders. |
Interest Only
|
top
|
| This is when you pay only interest to the
lender and none of the capital thus never reducing the loan. |
Interest Only Mortgage
|
top
|
| This is when only payments of interest are
paid to the lender for the term of the loan. All mortgages other
than capital and interest ones are a form of interest only. Some lenders will
allow loans to be set up without any specific provision to repay
the capital at the end of the period this is known as a pure interest
only loan. |
Interest Rate
|
top
|
| Percentage charged by your lender for borrowing
money |
Intermediaries
|
top
|
| Broker who attempts to sort and
arrange financial packages for you. |
Introducer
|
top
|
| Broker or person introducing your mortgage to
a lender. |
IPT
|
top
|
| Insurance premium tax. |
Irregular Earned Income
|
top
|
| Additional income over the basic salary
that is of an unusual nature; additional payments to which the employee
may be entitled but which are not received on a regular basis. |
ISA
|
top
|
| A tax free scheme, which allows investors
to save up to £7,000 a year in shares, cash, or insurance policies,
without having to pay any capital gains tax when the portfolio value
rises. |
IVA
|
top
|
| Individual voluntary arrangement (IVA). |
