Jargon Buster
A glossary of commonly used consumer finance terms
Within all aspects of consumer finance: Mortgages, Loans, Credit Cards or Savings the use of jargon and accepted industry terms is widespread. Our comprehensive jargon buster explains what those terms mean in an effort to demystify consumer finance.
IFA (Independent Financial Advisor)
An advisor who can recommend financial products from any financial company.
Illustration
An illustration gives you an example of the monthly cost of a mortgage and other expenses associated with the loan such as set-up costs.
Income Protection
Income protection provides insurance in case you are unable to make payments on an outstanding mortgage, loan or credit card.
Individual Saving Accounts (ISA)
A tax-efficient plan launched in April 1999. Permits investment in stocks and shares, cash deposits and insurance.
Individual Voluntary Arrangement (IVA)
IVAs were introduced under the insolvency act 1986 with the intention of allowing an individual to avoid bankruptcy and make maximum possible restitution to creditors.
Inflation
Increase in earnings or prices, which change in accordance with price inflation, and the national average earnings.
Inheritance Tax
Tax payable on your estate when you die.
Instant Access Account
A savings account where the saver has access to their money immediately.
Interest Only Mortgages
The payment you make to the mortgage lender each month only pays the interest you owe them for that month. You should also be making a monthly payment into an investment product to generate sufficient funds to pay off the capital you still owe at the end of the mortgage to the provider.
Interest Rate (also known as: rate of interest, mortgage rate or product rate)
The rate of interest on your mortgage denotes the amount you are paying the lender to borrow funds.
Intermediary
Broker or person who attempts to sort and arrange financial packages for you.
Introducer
Person who introduces a loan to a lender.