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.
Redemption
This is paying off the mortgage, either to move to another property or at the end of the mortgage term.
Redemption Charges
These are any charge levied by the lender when the mortgage loan is repaid before the end of the full term. Known as Now known as Early Repayment Charges.
Refinancing
This is where borrowings are rearranging with a different lender, usually to receive more attractive terms or to raise fresh capital.
Remortgage / Remortgaging
The arranging of a loan on a property in which the borrower already resides. Normally this involves redeeming an existing loan on the property.
Repayment
This is payment made to cover interest or reduction in principal of a loan.
Repayment Mortgages
A repayment mortgage works as a monthly repayment to your lender and consists of the interest you owe plus a capital payment. By keeping up the repayments on your mortgage, you are guaranteed to pay off the mortgage at the end of the term. Repayment-type mortgages are the safest option and are the most popular mortgage type in the UK.
Repayment Plan
If you fall behind on your payments a lender may try to renegotiate your repayment plan.
Reservation Fees
The same as arrangement, booking and product fees. A fee charged by a lender for setting up the loan. Normally payable upon completion but it can sometimes be added to the loan.
Restructured Loan
When a lender offers renegotiated terms.
Retail Price Index (RPI)
A measure used by the Bank of England to assess inflation. It is based on the price movements of goods and services purchased by consumers.
Reward Points
An incentive system whereby you gain additional points by using a credit card and you can exchange the points gained for various items.