Our glossary results: 54 matches!

IFA

In theory, these intermediaries should look at the entire financial market before making a selection and offer unbiased advice and access to all suitable financial products. they sometimes still have access to special deals not on offer elsewhere because they may subscribe to a mortgage panel along with other advisers and brokers. Together they convince lenders to provide special packages in return for their continued custom. The only trouble is that they have to deliver a certain level of business over a year to remain on the panel, so they may favour some products over others.

Impact fees

Fees collected from developers of new homes to pay for schools, parks, and other facilities.

Impaired credit

Impaired credit mortgages are specialist loans for customers whose credit problems disqualify them from using the lenders' standard products. Some lenders specialise in loans such as these, which are also known as ‘non-status’ loans.

Improvement grant

Provided by the local authority towards the cost of repairing or improving property. Contact your local council for further information.

IMRO

One of several regulators of investment managers. If you have a complaint about the management of your funds, you can go to them.

Incentives

Sweeteners that are used - such as fitted kitchens and luxury items - by developers of new homes to entice you to buy. The cost of these is often offset elsewhere in the purchase cost. See also 'Mortgage incentives'

Incidence of interest calculation

The frequency that the outstanding interest and ongoing mortgage repayments are calculated. Charging interest on the outstanding balance of your loan at the end of each day, means you reap immediate benefits of any repayments you make, since you will be charged interest on a smaller debt each day. As long as you are making payments on time, the more often interest is calculated the better for you. This is a common feature of flexible mortgages but is not restricted solely to them. When interest is calculated annually, repayments are not updated to include the reduction in capital that arises from the payments you make throughout the year.

Inclusions

Basic fixtures and fittings list negotiated at time of making offer.

Income multipliers or multiples

The size of the mortgage that lenders offer, will often be worked out by multiplying your income each year by a set percentage.

Income protection

Insurance designed to protect you if you are unable to continue providing for yourself or others. Income protection will not specifically pay off your mortgage, loans, private medical treatment, or special needs that arise through disability. It will provide you with a regular weekly or monthly income if you become unable to work as a result of accident, sickness or disability. The amount of benefit that is paid out it is not linked to your mortgage or other loan payments, but your overall level of income.

Income protection insurance

Insurance designed to protect you if you are unable to continue providing for yourself or others. Income protection will not specifically pay off your mortgage, loans, private medical treatment, or special needs that arise through disability. It will provide you with a regular weekly or monthly income if you become unable to work as a result of accident, sickness or disability. The amount of benefit that is paid out it is not linked to your mortgage or other loan payments, but your overall level of income.

Income references

Conformation of stated income provided by an employer or certified accounts if self-employed.

Income Support for Mortgage Interest

Help provided by the government to assist people who are ill, have suffered serious injury or become unemployed and have a mortgage. You will not qualify for state help with your repayments until nine months after you make a claim and then only if you qualify for income support, you have savings less than £8,000 and your partner works less than 24 hours a week. Payments are calculated by taking the average interest rate of the top twenty lenders - if you are getting charged an interest rate higher than that average, then there will still be a shortfall between the ISMI payment and your mortgage repayment.

Incorporated Society of Valuers and Auctioneers.

A professional body for surveyors which provides a code of practice for its members.

Indemnity

Applies to insurance policies and means the insurer will basically make sure you are no better or worse off in the event of a claim, taking into account wear and tear.

Indemnity Guarantee Premium

Additional one-off fee paid to the lender to protect them against the borrower defaulting. Independent Financial Advisor In theory, these intermediaries should look at the entire financial market before making a selection and offer unbiased advice and access to all suitable financial products. they sometimes still have access to special deals not on offer elsewhere because they may subscribe to a mortgage panel along with other advisers and brokers. Together they convince lenders to provide special packages in return for their continued custom. The only trouble is that they have to deliver a certain level of business over a year to remain on the panel, so they may favour some products over others.

Independent Financial Advisor

In theory, these intermediaries should look at the entire financial market before making a selection and offer unbiased advice and access to all suitable financial products. they sometimes still have access to special deals not on offer elsewhere because they may subscribe to a mortgage panel along with other advisers and brokers. Together they convince lenders to provide special packages in return for their continued custom. The only trouble is that they have to deliver a certain level of business over a year to remain on the panel, so they may favour some products over others.

Independent surveyors report

A survey will tell you exactly what work needs to be done to the building and whether there are any problems with the property you did not know about. This can help avoid unpleasant and costly surprises after you have moved in. As the buyer, it is your responsibility to find out what you are committing yourself to. The seller has no liability whatsoever once the purchase is complete.

Index tracker mortgage

The interest rate tracks an index such as the base rate or LIBOR and often has a set percentage added to it.

Individual Savings Account

Tax-free savings plans that allow the individual to invest in cash, stocks or shares or insurance.

Inflation

The continual aggregate rate of increase in prices.

Inheritance

Money, possession, or estate received from a friend or relative who has passed away.

Initial guarantee period

A warranty provided on many new homes which means that the developer is responsible for any major structural problems for the first two years.

Inspection Chamber

Used to access a drain. Consists of an opening at ground level with the drainage channel at its bottom. Also called a manhole.

Instalments

Regular part payments towards the total cost of a loan or premium.

Instructing

This is when you employ the services of an estate agent, solicitor, or surveyor to act on your behalf.

Insulation

Material, foam, or other substance that is used to retain warmth in the structure of your home. The most common forms of insulation are carpets, cavity wall insulation and loft insulation. Good insulation can drastically reduce winter heating bills.

Insurable title

Title to property that a company agrees to insure against defects and disputes.

Insurance excess

Applies to an insurance claim and is simply the first part of any claim that must be covered by yourself. This can range from £50 to £1000 or higher. Increasing your excess can significantly reduce your premium. On the other hand, a waiver can sometimes be paid to eliminate any excess at all. Always check the excess in your policy.

Insurance ombudsman

This is an official body to which any complaints or problems with an insurer should be put.

Intangible assets

Brands, patents, intellectual property rights and the like which a company may possess. Such assets are non-monetary and without physical form but represent a reasonable claim to future benefit.

Interest accrual rate

The rate at which interest accrues on a mortgage.

Interest only mortgages

With an interest-only mortgage, your monthly repayments to the lender consist only of interest on the total loan amount. The interest payments will vary depending on the interest rate being charged by the lender at the time. This type of mortgage involves paying the lowest possible monthly outlay to the lender, as no capital is included in the repayment. Instead of repaying the capital, regular payments are put aside in a suitable investment or savings plan. This grows cumulatively and assumptions are made regarding its growth in order to calculate a monthly repayment figure. If you are fortunate, the investment will accumulate at a higher rate than is required to pay back your loan on time, resulting in a cash surplus at the end of the term. This is not always the case however, and sometimes there can be a cash deficit at the end of the term.

Interest rate

The is the percentage of your loan that a lender charges you each year for the privilege of borrowing money. The prevailing level of interest charged by lenders depends largely on the economy and the Bank of England base rate. If the Governor of the Bank of England and the Monetary Policy Committee are worried about the economy overheating and causing inflationary pressure, they may raise interest rates. This makes it more expensive to borrow money and therefore the overall demand for borrowing is reduced. Since this is one of the most commonly used instruments for managing the economy, we are subject to fairly frequent changes in interest rate.

Interest rate cap

A limit on the amount interest can rise or fall during a specified period of time on a variable rate mortgage.

Interim interest

Any payment due for the period from the day the mortgage began up to the first payment date

Interim statement

This is an additional statement of your mortgage account. You are usually charged by your lender when you request a copy of an annual statement previously issued or when you request a statement outside of the normal annual statement period. Costs £10 - £20

Interims

Results announced by a company, usually for the first six months of its reporting period which identify the dividends paid on the results for this period.

Intermediaries

Brokers and other intermediaries attempt to arrange suitable financial products or policies for you. They can be fully independent, part of a network that uses a panel of providers or tied to certain institutions in which case they can only sell their products.

Intermediary

Brokers and other intermediaries attempt to arrange suitable financial products or policies for you. They can be fully independent, part of a network that uses a panel of providers or tied to certain institutions in which case they can only sell their products.

Internet Service Provider

If the internet is a motor way, then your ISP provides the slip road to get on it. They provide you with software and a phone number that routes all your internet browsing through their servers.

Introducer

Inform borrowers about certain mortgages and ‘introduce’ them to the lender. Introducers receive a fee for passing on new business.

Investment club

A group of people who band together and sometimes pool money in order to invest on the stock market.

Investment Managers Regulatory Organisation.

One of several regulators of investment managers. If you have a complaint about the management of your funds, you can go to them.

Investment target

This is the level the investment portion of an endowment mortgage or other repayment vehicle must reach in order to be able to repay the loan.

Investment trust

A company listed on the stock exchange and whose sole purpose is to invest in shares of other companies, often specialising in specific types of company, geographical area, or industrial sector.

Investment vehicle

The method chosen to invest money in order to repay an interest only mortgage. E.g., pension, ISA, or endowment.

IPT

Insurance premium tax. Tax on all UK general insurance under Government control, currently charged at 4% (1/1/2000) of the premium.

ISA

Individual Savings Account.

ISA mortgages

Interest only mortgage where you pay interest on the full amount of the loan for the full duration of the term. You also pay an agreed monthly sum in addition to your interest repayments. With this type of mortgage, your payments go into the tax-free ISA savings vehicle which were brought in to replace PEPs. They take a variety of formats: including cash, life assurance policies such as endowments, stock market investments such as shares, unit trusts, investment trusts and investment bonds, or even a combination of the different holdings. The value of your investment hopefully accumulates over time and any growth is added to your balance free of tax. ISA mortgage are fairly flexible and usually allow you to overpay, thereby hopefully reducing your mortgage term.

ISMI

Help provided by the government to assist people who are ill, have suffered serious injury or become unemployed and have a mortgage. You will not qualify for state help with your repayments until nine months after you make a claim and then only if you qualify for income support, you have savings less than £8,000 and your partner works less than 24 hours a week. Payments are calculated by taking the average interest rate of the top twenty lenders - if you are getting charged an interest rate higher than that average, then there will still be a shortfall between the ISMI payment and your mortgage repayment.

ISO 9002 certification

This is an independent verification provided to surveyors that they can have carried out to check and control the quality of their service.

ISP

If the internet is a motor way, then your ISP provides the slip road to get on it. They provide you with software and a phone number that routes all your internet browsing through their servers.

ISVA

Professional body for surveyors which sets a code of practice for its members.