| APR |
APR stands for 'Annual Percentage Rate'
and is a percentile figure representing the total interest that you will be charged
on your loan. APR is calculated to also include any additional fees that might
be charged. |
| Arrears |
this is the word used to describe the
amount a borrower might have fallen behind in their loan repayments, as expressed
either in terms of money or time. |
| Collateral |
another word for security, collateral
is a term used to refer to property or assets used in order to secure a loan. |
| Credit agreement |
a document outlining the terms and conditions
of a proposed loan or other form of credit. The credit agreement must be signed
before a loan can be received. |
| Credit reference agency |
credit reference agencies hold individual
fiscal records for all UK residents and provide reports to lenders in order to
help them make assessments. |
| Debt management plan |
a plan devised in order to help those
who are struggling with their debts, usually involving lower repayments over a
longer period. |
| Fixed interest rate |
a fixed interest rate will remain the
same throughout the term of the loan. Fixed interest rates are usually initially
higher but are not subject to fluctuation or change. |
| Over-repayments |
over-payments are payments made over
and above the agreed rate of repayment. |
| Secured |
a secured loan is a type of loan which
requires collateral to be put up against the loan. |
| Security |
see collateral. |
| Term |
the term is the length of term over
which a loan is agreed to be repaid. |
| Under-repayments |
under-repayments are payments made which
fall below the level initially agreed in the repayment plan. |
| Unsecured |
this type of loan does not require any
security but usually comes with higher interest rates than a secured loan. |
| Variable interest rate |
a variable interest rate is one that
is subject to change over the term of the loan. |
