JARGON BUSTER

A I B I C I D I E I F I G I H I i I J I K I L I M I N I O I P I Q I R I S I T I U I V I W I X I Y I Z

(P)

Pension : A repayment vehicle associated with Interest Only Mortgages.

Personal Equity Plan (PEP) : A repayment vehicle associated with Interest Only Mortgages.

Portability : A portable mortgage is one that can be transferred to another property without penalty if the borrower moves house within an Early Repayment Charge period. The new interest rate that the Lender will be prepared to offer depends on whether the loan amount increases or decreases. If the latter, Early Repayment Charges may apply.

Procuration Fee : This is commission paid by Lenders to intermediaries for introducing business to them. The rules for display of the procuration fee in the KFI (Key Facts Illustration) are set out in section 5, of the FSA rules on mortgage advice (MCOB).
Also Known as: Introducer Fee.

 

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