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.
Payment Default
If you fail to make payments to a loan, credit card or mortgage it is known as a Payment Default. In the case of Mortgages or any debt that is secured against your home the lender is entitled to reposes your house and sell it to recover the debt.
Payment Method
A means by which the mortgage capital is eventually repaid.
Payment Protection Insurance
See ASU accident, sickness and unemployment insurance. See also unemployment insurance.
Payment Schedule
A schedule of monthly payments under a loan.
Portable
Describes a mortgage that can be transferred from one property to another.
Principal
The amount of credit still outstanding - the amount on which interest is calculated.
Product Fees
The same as arrangement, reservation and booking fees. A fee charged by a lender for setting up the loan. Normally payable upon completion but may sometimes be added to the loan.
Learn more about product fees on our mortgage fees page.
Purchase
The acquisition of a property.