Broke, skint or boracic?
No matter how you describe it, being overdrawn at the end of every month is no laughing matter.
Find out more about secured and unsecured loans, Personal, Business and Debt Consolidation Loans - for tenants, living with parents and members of HM Forces - then enjoy our light-hearted guide to slang terms for money.
The pound changed from 240 pennies to 100 'new pee'.
Out went the 'thruppence', 'sixpence' or 'tanner' and in came the...err - well no-one seemed fond enough of the new stuff to bestow nicknames on it although a 50p coin has sometimes been known as a 'pie'.
The shilling or 'bob' became the 5p coin - the term 'bob' outlasted decimalisation, as in 'Thirty bob to you.' (£1.50!)
The florin or two shilling became the 10p.
The sovereign or 'marigold' disappeared - called the latter due to the coin's golden colour.
How much is a:
Quid or Knicker
|Half a ton or Nifty||
|Ton or One-er||
|Grand or K||
|Pony or Macaroni||
Money, money, money...Don't have any dosh, drinking vouchers or lolly, short on the spondulicks, running out of rhino or readies, lamentably low on loot and lucre (filthy or otherwise) - want to make 'a packet'? You could soon be boracic if you're not careful with the wonga, moolah, dough or bread. The origins of this rich vocabulary are:
Dosh is thought to be a corruption of 'doss' meaning enough cash to get your head down for the night in a 'doss house' or cheap lodging.
Drinking (or beer) vouchers is a fairly recent phenomenon and is self-explanatory.
Lolly is now falling into disuse - it's origins are uncertain but maybe having plenty of lolly allows you to loll around.
Spondulicks is another term of uncertain origin.
Readies derives from cash being 'ready money'.
Lucre is practically always filthy, and originates from the Latin lucrum = gain, profit or advantage.
Boracic (brassic) is widely used and derives from cockney rhyming slang - boracic lint = skint. Boracic lint was a kind of bandage treated with boric acid to act as an antiseptic.
Skint is a derivation of skinned, i.e cleaned out, nothing left.
Dough and Bread are essentials like cash!
Money - Pink Floyd
Penny Lane - Beatles
Money, Money, Money - ABBA
Money For Nothing - Dire Straits
Mouldy Old Dough - Lieutenant Pigeon
and anything by Johnny Cash!
Money saving tips | Earn Money working From Home | Start Your own Business
Adverse Credit -AEA - AER - Allowances - Annuity - APR - Audit - Banker's Draft - Bank of England - Bankruptcy - Base rate - Bridging Loan - Cancellation Period - Capital Gains Tax -Cash flow - CCJ'S - Child Tax Credit - CGT - Cooling off period - Corporation Tax - CPI - Credit rating - Credit Reference Agency - CTC - Debt Consolidation - Debt Management - Fixed rate - Flexible Loan - Gross income - Guarantor - Hire Purchase - Home Income Plan - Inflation - Inheritance tax - Interest rate - ISA - IVA - Liabilities - Life Assurance - Liquidation - Loan - Net interest - Offset - Personal Loan - RPI - Secured Loan - Self Assessment - Student Loan - SVR - Term Assurance - Unit Trusts - Unsecured Loan - Working Tax Credit
A bad credit record, such as CCJ's , repossession orders, IVA's or arrears.
The Annual Exempt Amount is the yearly allowance for Capital Gains Tax (CGT)
The Annual Equivalent Rate is the figure that helps with comparisons of one financial product with another, and is generally quoted on interest paid on savings and investments. It shows what the rate would be if interest was paid just once a year.
These are concessions from the Inland Revenue which can be used to reduce your taxable income. Your Personal allowance is an amount of income that is tax free.
This is an insurance policy that provides a regular income in exchange for your pension fund, or a lump sum to a Life Company. It is advisable not to automatically accept the annuity offered by your existing company, as you have the legal right to take it to another Life Company who may well offer a better rate.
All lenders are required by law to tell you what their APR - Annual Percentage Rate - is before you sign an agreement. The rate quoted on loans and credit cards may be the monthly or annual rate of interest you pay, but the APR figure calculates the total amount of interest that will be paid over the whole term of the loan, so the lower it is the better for the borrower.
An official examination of accounts by a qualified accountant external to the company.
This is a cheque made out to the creditor by the debtor's bank, it is drawn on the banks funds rather than the debtor's and is considered more secure than a personal cheque as it can't usually 'bounce'. Beware, however, as the frequency of forged drafts has increased in recent years and there are many scams designed to separate the unwary from their goods/money.
Bank of England
The Bank of England's Monetary Policy Committee sets the interest rates to achieve the Treasury's inflation target. The BOE is also responsible for the regulation of the banking industry.
This is when an individual who cannot pay their debts has been served a Bankruptcy order by a court. The petition can be filed by the individual or by his creditors.
This is the lowest rate at which a lender will charge interest. The Bank of England's Monetary Committee sets the rate.
This is a short-term loan to cover what will eventually be covered by long-term finance. Sometimes a Bridging-loan is required by purchaser of a property who hasn’t yet sold their original house.
The Consumer Credit Act provides a period of time after signing a contract during which customers are entitled to cancel their purchase of some financial products, in certain circumstances.
Capital Gains Tax
The amount of cash that flows in and out of a business. The company is 'cash positive' if more money comes in, and ' cash negative' if more cash goes out.
A County Court Judgement is issued for failure to pay an outstanding debt. This will go on file and subsequently affect your credit rating. Bailiffs can be used to enforce payment of CCJs.
Capital Gains Tax is liable on gains made when you sell assets, such as shares. The tax depends on the level of your income liable to income tax.
Child Tax Credit
This is generally available to most families with children. CTC is paid to families with children regardless of whether the parents are employed.
Cooling off period
The time a new policyholder has during which they can cancel an insurance/assurance policy.
The tax payable by a company on its profits.
The Chancellor of the Exchequer now bases the UK inflation target on the Consumer Price Index (CPI). The Consumer Price Index differs from the RPI in that it excludes housing costs. The CPI inflation target is set at 2 per cent.
See Child Tax Credit
A points rating used by banks, mortgage companies and other financial institutions that offer loans. An individual or company is assessed for credit worthiness and risk. Your credit report is compiled by credit reference agencies using public records, such as: the electoral roll, court judgments and bankruptcies and also information from other lenders and financial institutions.
If you are declined credit the lender should inform you the main reason for this. If the decision was based upon a bad credit report, you should obtain the name and address of the Credit Reference Agency they used. You have the right to view the information contained in your credit report to make sure it is accurate.
Credit Reference Agency
These are the agencies that compile credit records of consumers and releases the information to companies offering credit terms, such as Equifax or Experian. You are legally entitled to a copy of your Statutory Credit Report by post for a fee of £2 : Equifax, Plc. Credit File Advice Centre PO Box 1140 Bradford BD1 5US or Experian Consumer Help Service, PO Box 8000, Nottingham NG80 7WF
Debt consolidation loans combine all your outstanding debts into one loan in order to obtain more manageable monthly payments. Consolidating can eliminate the high interest charges on credit cards debts.
A Debt Management Plan (DMP) enables you to make reduced repayments to your creditors over a number of years. A debt management company will negotiate the payments with your creditors on your behalf.
The interest rate is fixed for a specific period.
The lender gives you a credit limit which allows you to then decide how much you need to borrow, when you want to borrow it, and how much you repay each month. You will probably pay a higher rate of interest than with a regular fixed rate loan. However, the interest with a flexible loan is calculated daily on the outstanding balance, so if you make an over-payment you will immediately reduce the overall amount you pay.
Your income before any deductions have been made, particularly tax.
A person who agrees to guarantee the debts of another. If the borrower fails to make his/her payments then the guarantor will be obliged to make those repayments.
The buyer pays an initial deposit and takes possession of the goods. After all the instalments are paid over a specified period the ownership passes to the purchaser.
Home Income Plan
This allows homeowners, especially the elderly, to release the equity that they have in their home without having to sell it. There are two types of Home Income:
Reversion - the property is sold to an insurance company, but the owner remains in residence and is paid an income. When the owner dies, the life insurance company takes over the property. Annuity - a mortgage, or re-mortgage is secured on the property. The proceeds are used to purchase an annuity to produce an income. With annuities the older you are then the higher the income you can achieve, so home income plans are more appropriate for people in their 70's.
The general rise in prices across the economy over a year.
A tax payable by your heirs on any gifts in the seven years before death, and on the value of assets when he or she dies – this is exempt between a husband and wife, or to charity.
The percentage rate at which interest is charged on a loan, or paid out on savings. The rate will vary according to the base rate and the type of loan or savings plan.
An individual savings account – allows UK residents over 18years old to save up to a set amount in each tax year without paying extra income tax.
An Independant Voluntary Agreement is a formal arrangement between you and your creditors - set up by a licensed insolvency practitioner - whereby you agree to make reduced payments towards the total amount of your debt, in order to pay off a percentage of what you owe.
The debts of a person or company.
This pays out a lump sum when the policyholder dies and is advised to protect large commitments, such as a house mortgage.
When a company ends - through being unable to pay its debts, or if it ceases trading.
To set one amount against another, such as a repayment against a debt. Offset mortgages set your current account balance and savings against your borrowing. This can pay your mortgage off faster and reduce your interest payments.
A loan from a lender to a borower for personal use, such as the purchase of a car, holiday, home improvements, etc. A Personal Loan can be Unsecured or Secured.
The Retail price index is an index of the average price of consumer goods and services used to measure the rate of inflation. This differs from the CPI in that it includes housing costs, such as: council tax, mortgage interest payments, house depreciation, buildings insurance, etc
This loan is secured on your property by the lender. This ensures the lender is minimising the risk of losing the money, and as a result is able to offer a Secured Loan at a lower APR than an Unsecured Loan. A Secured Loan may be easier to obtain even with a bad credit history, such as arrears or county court judgements.
With secured loans you should be aware that your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.
All taxpayers are obliged by law to maintain records of all income and capital gains, and need to complete a self assessment if you are: self-employed, a company director, a business partner, an employee with 'complicated' tax affairs, such as capital gains or you pay the higher tax rate, etc.
Student loans in the UK are publicly financed by the government body - Student Loans Company, and are provided to help students with their living costs whilst studying in higher education.
The loans are repaid through the tax system known as Income-Contingent Repayment (ICR) which adjusts payments to the Loans Company according to the gross income of the payee.
The Standard Variable Rate is the interest rate the lender charges which fluctuates with the changes in the base rate – this affects your interest payments accordingly.
This is a life assurance policy taken out for a specified period, after which it then lapses.
Investment funds that are managed portfolios; they are usually shares, but can also include cash, bonds and gilts.
An Unsecured Loan costs more in repayments than a Secured Loan, but does not carry the risks to your home if you unable to keep up repayments.
Working Tax Credit
A payment of in-work credits to those with low-incomes, and can include childcare costs. Families are eligible for the childcare tax credit if the parent/ parents work for at least 16 hours a week. WTC is also for non-parents as well.
|APR - Building Survey - Buy to Let - Capital and Interest mortgage - Capped Rate mortgage - Cashback mortgage - Commercial mortgage - Completion - Conveyancing Discount rate mortgage- Early Repayment Charge - Endowment mortgage - Exchange - First time buyers - Fixed rate mortgage - Flexible mortgage - Freehold - FCA - Full Structural survey - Higher Lending Fee - HIPs - Homebuyer's survey & valuation - Home Information Packs - IFA - Interest only mortgage - ISA mortgage - Joint Tenancy - Key Worker Living Programme - Land Registry - Leasehold - LTV - Mortgage - Mortgage-in-principle - Mortgage offer - Mortgage protection - Negative equity - NHBC warranty - Non status mortgage - Overpayment - Pension mortgage - Portable mortgage - Property chain - Remortgage - Repayment mortgage - Search - Second mortgage - Self Certification mortgage - Shared Ownership - Stamp Duty - Tenants in common - Tracker mortgage - Title deeds - Valuation|
Mortgage Glossary of Terms
The Annual Percentage Rate is the total amount of interest that will be paid over the whole term of a loan. The rate quoted on loans and credit cards may only be the monthly or annual rate of interest you pay. Lenders are required by law to inform you of the APR before you sign an agreement.
Also known as a Full Structural survey - recommended for older buildings built before 1960 and unusual properties such as those with a thatched roof or timber frame, and should reveal most defects. Each visible element of the property is inspected and any necessary repairs and costs are identified.
Buy to Let
Buying a property with the intention of letting it out to tenants for rent.
Capital and Interest Mortgage
Also known as a Repayment mortgage where the monthly payments pay both the interest on the amount borrowed and the outstanding mortgage.
Capped Rate Mortgage
A mortgage arranged for a set period which will go up and down with the variable rate, but where the interest rate charged will not rise above a maximum (Capped) interest rate.
The borrower receives a cash lump sum on completion, or after the first monthly payment. It can be a fixed amount or a percentage of the mortgage. This can help with the extra expenses of buying a house, such as: surveys, solicitor’s fees and removal costs, and is popular with first-time buyers.
A mortgage on a non residential building occupied by a business.
The date that the seller receives the money from the sale of the property and legal ownership passes to the buyer.
The legal work involved in the transfer of ownership of a property or land, usually carried out by a solicitor or licensed conveyancer.
Discount Rate Mortgage
A mortgage where the rate fluctuates with the base interest rate, but at a lower discount level for a set period.
Early Repayment Charge
Some mortgage contracts contain a penalty charge if you repay the mortgage early, such as during the period of a fixed or discounted rate - also known as Early Redemption Fee
An interest only mortgage where the capital at the end of the mortgage term is repaid by the proceeds of an endowment assurance policy. There are risks involved as there is no guarantee that the endowment will earn enough to pay off the mortgage at the end of term.
The signed contracts from the buyer and seller are exchanged and a completion date set. The buyer pays the deposit on the property. The exchange makes a binding contract.
First time buyers
Borrowers who are purchasing a property for the first time, they are usually offered special offers – discounts, cash back and fixed rates. Mortgage lenders are most competitive with first time borrowers as they hope to interest them in subsequent mortgages.
Fixed rate Mortgage
The mortgage rate is fixed for a set period. Generally, the shorter the period is then the lower the rate.
A combined mortgage and current account that allows you to vary your monthly payments by overpaying, underpaying or taking a payment holiday. Any monthly savings earn the mortgage rate, which is generally a high, tax-free rate of return. There should be no early repayment penalty.
If you buy the freehold of a property you own it and the land it stands on.
The Financial Conduct Authority (FCA) is an independent non-governmental body that regulates the UK financial services industry, including: mortgage lending, mortgage advice and general insurance advice. If the required standards are not met, then the FCA can take action against firms.
Full Structural survey
An extensive property survey - known as a Building Survey – this is recommended for older buildings built before 1960, and should reveal most defects. Each visible element of the property is inspected and any necessary repairs and costs are identified.
Higher Lending Fee
Formerly known as a Mortgage Indemnity Guarantee, this is the sum required by the lender when the amount borrowed exceeds a given percentage of the value of the property. The charge is used to buy an insurance policy against you defaulting on the mortgage loan.
These controversial packs were scrapped by the new Tory/Lib Dem coalition government on 20.5.10
See Home Information Packs
Homebuyer's Survey and Valuation
This survey is more detailed than a basic Valuation and includes significant matters such as subsidence or settlement and urgent repairs for which the client should obtain quotations prior to exchange of contracts. This is usually recommended for conventional, unmodified properties and generally those built after 1960's.
Home Information Packs (HIPS)
The coalition government abolished home Information Packs on 20.5.10. They believed the packs had a negative effect on the recovery of the housing market, discouraging sellers from placing their properties up for sale.
Home Information Packs, including Energy Performance Certificates,were introduced on a phased basis from 1st August 2007. Initially only sellers of properties with four or more bedrooms in England and Wales were required to order a HIP pack although three bedroom houses were included after September 10th. The house could be placed on the market before receiving the HIP documents, as long as the seller could prove the HIPs had been ordered and would arrive within 28 days. HIPs were intended to improve the house buying and selling process. The packs were paid for by the property vendor and contained information and documents about the property, including a rating of the home's energy efficiency. They increased the cost of selling a house by around £300 to £600 and were widely viewed as an unnecessary waste of time and money.
Independent Financial Advisers are authorised and regulated by the Financial Conduct Authority, which ensures they only provide advice most suited to your personal requirements and your risk outlook, before helping you to choose any financial products.
Interest only mortgage
A mortgage where the monthly payments only meet the interest on the capital amount borrowed. The capital amount remains outstanding and the borrower has to make provision for repaying this amount at the end of the mortgage term. Most borrowers use the proceeds of an investment, such as a long-term savings plan, an ISA or endowment policy run alongside the mortgage to repay the debt.
This is taking out an interest-only mortgage and running an ISA investment alongside in order to repay the capital sum borrowed. There are risks involved as with any stock market investment, but there is the advantage of tax savings in that any savings you make are free from Capital Gains and income tax. Most lenders also require life insurance to cover the amount borrowed.
This is the owning of land or property by two or more people. The joint tenants both pay the mortgage and get an equal share when the property is sold. If one of the joint tenants dies, the ownership of the property passes to the survivor/s, in contrast to property held by 'tenants in common'.
Key Worker Living Programme
A government-led initiative helping key workers - including such professions as: nurses, teachers, firefighters, police officers, social workers, prison staff, probations staff, who live in London, the South East and the East of England - to buy a home, upgrade to a larger family property or rent a home at an affordable price. The scheme offers eligible key workers interest-free loans of up to £50,000. The Housing Corporation gets back paid when you sell the property, and if you cease your job as a key worker you'll be required to pay the money back within two years. This programme is mainly aimed at first- time buyers.
The government body responsible for maintaining and updating the register of all properties in England and Wales – records and transfers land ownership. Since February 2005 for just a £2 fee online you can discover : who owns a specific property, how much it cost them, the name of their mortgage provider and the length of any lease on it.
This gives you the right of possession of a property, but not the ownership for an agreed period of time. Many flats in the UK are leasehold.
Loan-to-value ratio – this is the difference between the loan amount and the house's market value. A loan of £80,000 on a £100,000 home gives a loan-to-value ratio of 80%. The bigger the difference is between the loan and the value of the house, then the smaller the LTV. This difference is known as the equity.
A loan to buy a house, where the property is the security for paying back the loan. The lender has the authority to sell the property if repayments are not maintained. Mortgage repayments are usually made monthly over a long period, usually 25 years. There are many different mortgage options : repayment, flexible, tracker, capped, discount, self certification.
Lenders can agree to a mortgage in principle even before you find the right property. This is subject to further conditions being met, such as, credit checks and a property valuation.
The document issued by the mortgage lender to the borrower following approval, setting out the conditions and terms.
Usually taken out with a Repayment mortgage this policy provides life assurance that reduces in line with the decreasing mortgage debt. The policy pays out a lump sum in the event of death, which is used to repay the mortgage. There are no savings with a mortgage protection policy, it purely provides life insurance.
This is where the amount of money owed on the property exceeds the property's market value. So, if you sold your house you would not get enough money to pay off your mortgage loan.
if you are buying a new house you should receive a NHBC (The National House Building Council) warranty. Providing the builder is registered and the property meets standards the NHBC will issue a Buildmark Warranty. This offers insurance protection against any structural or building faults for 10 years.
If you do not have a credit record or any proof of income or a mortgage history then you are termed by lenders as 'no status'. It is still possible to arrange a non status mortgage even if you have been turned down before and have a poor credit history - CCJ's, mortgage arrears, repossession, Discharged Bankruptcy. Generally the maximum loan to value is around 70% and the rates are usually higher.
This is when you pay more than the required monthly repayment to your mortgage lender. A flexible mortgage allows overpayment and underpayment. As long as there is no early repayment charge you should be able to overpay as much as you can afford and cut down your mortgage term and interest paid.
You can link your personal pension plan with your mortgage loan,so that at the end of the mortgage term part of the tax-free proceeds of the pension fund repays the outstanding mortgage loan. You receive tax relief on your pension plan contributions, but are left with less for your retirement.
This is where a borrower can transfer their existing mortgage to a new property without incurring the penalty of early redemption fees. Most mortgages are now portable mortgages, meaning that if you decide to move you take your mortgage on the same terms and conditions to your new property. Mortgage portability can be advantageous, if for example you have secured a good fixed rate, a capped, cash back or discounted product originally and the market has since changed, leaving no comparable deals.
This is when a number of property transactions are dependant on others - when a seller needs the sale of their house before they can complete the purchase of another property. The chain can break if one buyer is unable to sell their home and a link breaks. A first-time buyer has no chain which is an attractive prospect for a seller.
The arranging of a new mortgage for your property without moving. The reasons for remortgaging are usually to get a better mortgage rate or to release equity for improvements.
You pay the mortgage along with the interest monthly. This is the most popular mortgage plan and the safest. A Mortgage protection policy is recommended with this mortgage plan, so if the policy holder dies the debt can be paid by the heirs. Also known as a Capital and Interest mortgage
This is usually carried out by the solicitor as part of the conveyancing process on your proposed property. The search checks for any plans with the Local authorities which might affect the property, such as: new roads, proposed building developments or public rights of way. Most searches take around a fortnight, but they can take up to six weeks. It is usually possible if you need to act quickly to pay extra for a faster 'personal search'.
This additional mortgage on a mortgaged property is also known as a secured loan. The first mortgage takes legal priority, so the second mortgage is considered more of a risk for the lender, so the rates are likely to be higher.
Self Certification mortgage
This mortgage allows borrowers to certify their own earnings without having to supply documentation, such as wage slips. This option often suits the self-employed,
seasonal wage earners, or anyone with irregular earnings such as, a contract worker or commission-based employee, or those in salaried employment with a supplementary source of income, an unsalaried company director, or varying other circumstances. A specialist mortgage lender can often be more flexible than the high street lenders with Self cert mortgages. This type of mortgage is now unavailable from our lending panel.
This government scheme enables you to buy property jointly with a Housing Association, a housing society or a non-profit making housing company, who will pay between 25 and 75 per cent of the cost. This scheme was developed to help those who could not afford to buy a home outright, and allows you to buy a share of the property and pay a rent on the remaining share. Up to four people can become joint owners, but all joint applicants must individually and jointly meet the eligibility criteria. The share you purchase is funded by a mortgage. It is possible to buy further shares and eventually own the property.
This tax imposes a percentage charge on the price of a property.
Tenants in Common
This is where two or more people own a property, but if one of the owners dies their share of the property passes to their next of kin not the other owner/s, unless there is a will stipulating otherwise. The terms are defined by the percentage of the property that each person owns.
The interest rate reflects the changes made by the Bank of England. It can be for only a few years or for the duration of the mortgage.
The legal documents for a property that detail the owner, any restrictions on the use and rights of way. In England and Wales information on deeds and land ownership is held by the Land Registry
This basic survey is carried out by the mortgage lender and assesses whether the property is good security for the proposed mortgage loan. The buyer usually pays for this and receives a copy. Some lenders do not charge. This survey is suitable for a new house, but for any other property it is recommended you commission your own survey, such as the Homebuyer's survey & valuation
100 Work from home Ideas
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME - YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.