Support

Accessibility
We are committed to ensuring that all our products and services are easily and equally accessible to all our members, enabling disabled people to conduct their business with us without difficulty.

Accidental Damage (Buildings)
Optional cover providing protection for accidents that might damage the permanent structure of your home. For example putting your foot through the ceiling when you are in the loft. Included as standard with our 5 Star Home Insurance cover.

Accidental Damage (Contents)
Optional cover providing protection for accidental loss or damage to your home contents. For example spilling paint on your carpet or damaging an ornament. Included as standard with our Home Insurance cover and as an optional extra with our Home Insurance Essentials cover.

Account number
A unique number which identifies your account.

Additional Borrowing
Sometimes called a further advance. This is the term used when an existing mortgage customer wishes to increase their mortgage borrowing, which can be done 6 months after the main mortgage loan has completed. Additional borrowing is often used to fund home improvements but can be taken for any purpose (except capital raising).

Add fee to loan (mortgage)
You can add some fees to the loan and spread the cost over the remaining term of the mortgage. You will pay interest on the fee over the lifetime of the mortgage.

Advice (mortgage)
A recommendation to enter into or vary the terms of an existing mortgage based on your individual needs and circumstances.

Agreement in principle (mortgage)
See decision in principle.

Annual Allowance (pensions)
An amount defined by HMRC as the maximum that can be put into a pension in one tax year, that can receive tax relief.  Investments made into the pension within one tax year exceeding this amount will be subject to taxation. Current rates will be available from the HMRC website.

Annual Equivalent Rate (AER)
AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and compounded once a year.

Annual General Meeting (AGM)
An AGM is held every year to elect the board of directors and inform their members of previous and future activities. It is an opportunity to receive copies of the company's accounts as well as reviewing financial information for the past year and asking any questions regarding the directions the business will take in the future.

Annuity and Lifetime Annuity
An annuity is bought with the fund built up in a money purchase pension scheme, and is a product that guarantees an income for life.

Annual Percentage Rate (APR)
The APR shows the total amount of interest you will have to pay over the course of a loan (including all cost and charges). This is broken down into a rate per year. It can help you to understand the real cost of borrowing money.

Automated Teller Machine (ATM)
ATMs can be referred to as cash machines or cash points and are found in many public places in the UK and overseas. They enable you to check your bank balance and take out money (usually between £10 and £300) from your bank account using your cash card and PIN (Personal Identification Number).

BACS
The Bankers Automated Clearing Service (BACS) is a free service for making direct credits and debits. Payments using BACS will usually take three to four working days to credit the beneficiary's account.

Balance
A balance refers to the amount of money that you have in your bank account.

Balance transfer
A balance transfer is when you move an existing balance from one credit card to another.

Bank
An organisation that offers a range of financial services (e.g. savings, loans, current accounts and mortgages).

Bank of England base rate
The interest rate set by the Bank of England Monetary Policy Committee which is used as a benchmark by lenders to set their own rates.

Bankers’ Automated Clearing Service (BACS)
A service that allows payments and transfers of money to be done electronically.

Banker's draft
A cheque drawn on the bank or building society itself against either a cash deposit or money taken directly from your own bank account. A banker's draft is a secure way of receiving money from someone you don't know and where cash is inconvenient. Banker's drafts are commonly used for large purchases such as homes and cars.

Borrow Back
A feature of a mortgage where any overpayments made may be withdrawn and borrowed back.  Any overpayments will have already reduced the balance outstanding, so when it is borrowed back the balance will increase. Interest will be charged on the higher balance and monthly payments will also increase. All requests to borrow back overpayments are subject to an eligibility assessment and current lending criteria. (Consent from all applicants is required.)
Not all of our products have the borrow back feature, for example Consumer Credit Act 1974 regulated accounts do not benefit from this feature.
All mortgages reserved on or before 3rd March 2010 include the option to borrow back, subject to eligibility. Any mortgages reserved after this date do not include this facility.

Bridging loan
A special type of loan which is taken out to overcome a short term cash flow problem, usually needed when you buy a property before you sell.

Budget
Plan to help manage money by showing income and expenditure over a period of time.

Building society
A financial company that offers similar services to a bank (e.g. mortgages, savings, loans and current accounts) but is owned by its members.

Building society or bank statement
A document sent to you (usually once a month) showing details of transactions (money going in and out of your account). You might also be able to view your statements online.

Buildings insurance
This is insurance cover for a building which pays out an insured amount, in the event of a claim, for an insurable event under the policy terms, such as fire, flood and wind. In most cases, buildings insurance is needed as part of a mortgage terms.

Buy-to-let mortgage
Specific mortgages that are for those that buy property to rent out.

Capital
The amount of money you still owe on your mortgage.

Capital Gains Tax
A Capital Gains Tax is a tax on the gain or profit you make when you sell, give away or otherwise dispose of something. It applies to assets that you own, such as shares or property. There's a tax-free allowance and some additional reliefs that may reduce your Capital Gains Tax bill. Sometimes you may have no tax to pay.

Capital and Interest mortgage
This is the most common way to repay your mortgage. Your regular repayment is made up of some of the amount borrowed plus interest every month. It means your mortgage will be repaid in full by the end of the term providing all payments are maintained in full and on time.

Card Protection
Card Protection provides valuable protection in case you lose your credit, debit or store cards or if they are stolen.

Card reader
Card reader is an extra level of security used by Rafidain Bank to reduce fraud when you access your accounts online. It uses something you have (such as your current account Visa debit card) and something only you know (your PIN) to generate a unique eight-digit passcode for you to access your Internet Banking service and to authorise transactions.

Card Security Code
Your Card Security Code is the last three numbers that appear on the back of the card you are using to make the payment. It can also be called a Card Verification Code.

Cash card
A card that allows you to take your money from a cash machine or branch.

CHAPS payment
The Clearing House Automated Payment System (CHAPS) is used to transfer cleared sterling funds within the UK, for same day settlement. There is a £20 charge for CHAPS payments from current accounts (there's no charge for FlexOne current accounts) and a £25 charge for mortgages. Same day CHAPS payments can only be made if actioned/ordered before 3pm.

Cheque
A cheque is a document that orders a payment of money from a bank account. You write a cheque, by giving details of who the cheque is to be paid to and for how much. You then date and sign it, give it to the person you are paying, they then give the cheque to their bank or building society who will then pay them the amount that you have written in the cheque. FlexOne current accounts do not offer a cheque book.

Child Trust Fund
The Child Trust Fund was a government backed savings and investment account for children. Child Trust Funds are no longer available, however every child born between 1st September 2002 and 2nd January 2011 will receive a voucher that can be used to open a Child Trust Fund account.

Chip  and PIN
Chip and PIN is a system which allows you to approve purchases made with your credit or debit card by entering a four-digit PIN which only you know. This is more secure than just a signature which could be forged. For security, you shouldn’t write your PIN down or tell it to another person.

Citizenship (In Rafidain Bank)
Citizenship is about how we can use our products, services, campaigning and community investment collectively to deliver a greater social impact.

Collateral
Something of value that is given as a guarantee to the lender that you are able to pay back the loan; in the case of mortgages it is the house itself.

Compensation
Something, typically money, awarded to someone for loss, injury, or suffering.

Completion (mortgage)
The final stage of the sale when the ownership changes hands from the seller to the buyer.

Consent to Let (mortgage)
Permission from your mortgage provider will be required if you wish to let/rent out your property if your current mortgage is arranged on a residential basis.

Construction Type
The material used to build the wall of the insured property i.e. brick or other material.

Contactless
Contactless payments let you make quick, easy and secure payments for everyday purchases under £30 using your Visa debit card. There's no need for a PIN or a signature, just touch your card on a contactless card reader.

Contents insurance
Insurance against damage to or theft of the contents of your house including furniture and furnishings, TV and audio, all electric goods and appliances, clothing and jewellery.

Continuous Authority
We will automatically renew your insurance policy every year without changing the payment method.

Continuous Payment Authority
An agreement set up with a company to pay regular amounts, similar to a Direct Debit but set up between the customer and the company with no mandate with the bank.

Contract Variations (mortgage)
Varying the terms of an existing mortgage, for example reducing/extending the term or converting the repayment type.

Conveyancing
The process of transferring ownership from one person to another.

Cookies
A cookie is a text file placed on your hard drive by some web pages that you have visited. Cookies may contain information about you and your preferences. Only the information that you provide, or the choices you make while visiting a website, can be stored in a cookie. For example, the site cannot determine your e-mail address unless you choose to type it. A cookie does not give the website access to the rest of your computer. Only the site that created the cookie can read it.

County Court Judgements (CCJs)
Is an order made in a county court for a debt to be repaid in England and Wales.

Credit rating
Credit rating is a rating system used by financial institutions, to judge an individual or company's creditworthiness. Depending on how many points the applicant gets when his/her personal details are run through the rating system, the financial institution will either accept or reject the risk. Financial institutions rely on computerised credit rating systems, and co-operate with each other in providing details of bad credit risks.

Credit reference agency
Credit reference agencies are organisations that gather information about people and businesses across the UK. This information comes from lenders such as banks, credit card companies and fraud prevention agencies, as well as records in the public domain.

Credit report
Credit report is a report issued by a credit agency usually for a small fee which highlights someone's past purchase behaviour and credit rating.

Credit scoring
Credit scoring is a way of assessing someone’s financial status. This is used to decide which credit facilities can be offered to customers.

Credit search

A credit search is when we carry out a search on your name and address with a credit reference agency to help us understand more about your credit history. Each time a search is done it is noted on your credit record to let other organisations know that we have asked for information about you.

Daily Interest (Mortgage)
With a Rafidain Bank mortgage your interest is calculated daily, which means you only pay interest on what you owe.

Debit card
A plastic card used instead of coins or paper money to buy things in shops, online or over the phone.

Debt Consolidation
Taking out one loan to pay off a number of other debts. You may be able to spread the loan over a longer period, which may reduce your monthly payment, but by increasing the term you may pay more interest overall.
It may be possible to increase your mortgage or personal loan to pay off debts, but it’s important to seek advice before doing this.
You need to think very carefully before securing other debts against your home as your home may be repossessed if you do not keep up repayments on your mortgage.

Decision in principle (DIP) (mortgage)
This tells you how much we could lend you, it’s valid for 90 days and shows that you’re serious and in a good position to buy. It will include a list of required proof documents which can be sent to us now to help speed up the application process further down the line. A DIP does not guarantee we will lend to you as we first need to approve the property and check your proofs.

Defined Benefit
A type of Pension scheme which promises a certain level of retirement income to its members, determined by the accrual rate (the details of which will be available in the members documentation provided by the scheme), member’s salary and length of service, rather than the value of their pension fund. This is sometimes called Final Salary or Career Averaged Revalued Earnings (CARE).

Defined Contribution / Money Purchase
A type of pension scheme where the benefits are determined by the fund value. The size of the fund depends on how much has been contributed, where invested and how long for, and also charges. All personal pensions (including stakeholder pensions) and some occupational schemes are defined contribution.

Direct Debit
A Direct Debit is an agreement between you and a company you want to pay on a regular basis. The agreement you make authorises the company to collect varying amounts from your account on a regular basis. Because you’re covered by the Direct Debit guarantee, the company should always tell you what these amounts are - and when they’ll be collected.

Direct Debit Guarantee
This Guarantee is offered by all organisations that take part in the Direct Debit Scheme. The efficiency and security of the scheme is monitored and protected by your own bank or building society. If the amount to be paid or the payment dates change, the organisation, will notify you normally 10 working days in advance of your account being debited or as otherwise agreed. If an error is made by the organisation or by your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid. You can cancel a Direct Debit at any time by contacting your bank or building society. Please also contact the appropriate organisation.

Dormant account
An account becomes dormant when a customer makes no transactions on the account for three years or more. Customers who have a dormant account won't receive statements or cards for the account.

Early Repayment Charges
If you repay a loan or a mortgage early or make an overpayment of more than your overpayment allowance, an early repayment charge may be payable. Check your documentation for further details.

E-mail spoofing
A forged e-mail header to make it appear as if an e-mail came from somewhere or someone other than the actual source. The e-mail may look as if it came from your best friend or your bank when, in fact, it has been created by someone else unknown to you. This can be spam e-mail or an e-mail with malicious intent. In some jurisdictions, e-mail spoofing anyone other than yourself is illegal.

Endowment policy
A long-term savings policy (usually between 10 and 25 years), which is often used to repay the capital element of an interest-only mortgage at the end of the term.

Encryption
Encryption is used to scramble information to protect it from those who aren’t authorised to access it.

Endorsements
These change the terms or conditions of your policy, or may give you different cover. Any endorsements that apply to your policy will be shown in your schedule.

Enhanced Annuities
Providers of these annuities take into account factors such as lifestyle and health and if they believe the annuitant (the person who is entitled to receive benefits from an annuity) may have a lower life expectancy, they offer a level of income that may be better than a conventional annuity.

Equity
The monetary difference between the current market value of a property and the mortgage loan held against that property.

Equivalent Annual Rate (EAR)
EAR stands for Equivalent Annual Rate and is the compounded yearly interest rate applied to:

• the amount you've spent and
• any interest, fees and charges applied to your account.

Excess (Insurance policy)
An excess is the amount you pay towards any claim.
There are 2 types of excess, a voluntary excess and a compulsory excess. A voluntary excess is selected by you and a compulsory excess is applied by the insurer (dependent on certain criteria) and is in addition to any other excess. The higher the voluntary excess you chose, the lower the premium you will pay.

Execution Only (Mortgages)
A mortgage transaction completed by a firm upon the specific instructions of the customer where the firm does not provide advice relating to the suitability of the mortgage transaction.
Exit fees (also known as redemption charges)
Charged by some lenders when you exit a credit agreement early.

Extended Tie in
Many lenders require that you stay with them for a certain period after your deal ends. Rafidain Bank do not charge extended tie-ins on any deal.

Financial Conduct Authority (FCA)
Formed as one of the successors to the Financial Services Authority (FSA). The FCA regulates the financial services industry in the UK.

Financial Times Stock Exchange (FTSE)
The FTSE is an independent company wholly owned by London Stock Exchange. The FTSE 100 is the index which tracks the top 100 UK companies by market capitalisation.

Firewall
A firewall is a piece of software or hardware that provides a protective barrier between your computer and the Internet. A firewall will prevent intruders or hackers from gaining access to your PC and should be updated regularly. Popular personal firewall software such as McAfee Internet Security Suite, Norton Internet Security, or Zone Alarm can help to protect your computer.

First Time Buyer
A person buying their first property.
At Rafidain Bank we’ll allow customers who haven’t had a mortgage within the last 3 years to choose from our first time buyer product range.

Five Lever Mortice Locks
This is the standard deadlock, which offers moderate protection to the main doors in your home used for:

• Multi-point locking on modern UPVC doors where you lift the handle up before locking and bolts come out top, middle and bottom.
• Patio doors with individual key-operated locks/bolts top and bottom or fitted with multi-point locking.

Any of the above will qualify you to answer yes to the question on all doors having 5 level mortice locks.

Fixed rate interest
An interest rate that is fixed, it does not change i.e. move up or down with interest rate changes.

Fixed rate loan
A fixed rate loan means the interest rate stays the same throughout the term of the loan.

Fixed rate mortgage
A fixed rate mortgage provides the security of fixed mortgage repayments until the end of the deal period, no matter what happens to interest rates.

Flexible features
Rafidain Bank offers the following flexible mortgage features as standard:

• Overpayments - This is when you pay more than your required minimum monthly payment and build up an overpayment reserve. This enables you to pay off your mortgage earlier, save interest, or make underpayments in the future (conditions apply).
• 'Switch and Fix' - Our tracker products offer the option to switch to a fixed rate within our 'Switch and Fix' range at any point in the deal period, without paying Early Repayment Charges on the tracker mortgage.
• Payment holidays - For mortgages reserved on or before 3rd March 2010 you can apply for a payment holiday of between three and twelve months if you have had a mortgage for more than one year and your mortgage is less than 80% of the value of your home at the end of your payment holiday (conditions apply). Any mortgages reserved after this date will no longer include this facility.
• Borrow back - For mortgages reserved on or before 3rd March 2010 you can apply to borrow back a lump sum from your overpayment reserve.

Freehold
Where the sale includes the property and the land on which the property is built, and you have complete ownership of both for an unlimited time.