Support

Hacker
A hacker is a person who uses a computer to break into other computer systems in order to steal, change or destroy information. To protect yourself from hackers you should install firewall software on your computer and keep it up-to-date. Popular Personal Firewall Software such as McAfee Internet Security Suite, Norton Internet Security, or Zone Alarm can help to protect your computer.

Her Majesty’s Revenue & Customs (HMRC)
The Government department responsible for collecting tax money and paying some forms of social security benefits (e.g. child benefit).

Higher Lending Charge
Some lenders impose a Higher Lending Charge if you only have a small deposit. At Rafidain Bank, we don't.

Hire purchase
Hire purchase is a loan linked to buying something specific, such as a car. It’s a way of being able to use what you've bought before payment is completed.
Once you sign the agreement you can drive the car away the same day.

HomeBuyers’ Report
A report on the condition of the property showing the value of the property, any major faults and estimated costs to fix; though it does not include any detailed, or minor issues.

Home Emergency
24 hour assistance if a home emergency occurs and you need a tradesman to make your home safe, secure and prevent further damage. Cover includes up to £500 to deal with problems such as roof, plumbing and drainage damage, main heating system and domestic power supply failure, plus damage to your home security. This additional section does not cover normal day to day maintenance of the home.

Home Insurance
This is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

Premiums and payments are not linked to your mortgage and are payable to a separate policy.

Home Mover
A person selling one property and purchasing another property.

Income protectionThis can give you a regular monthly income if you are off work for a prolonged period because of an accident or illness. 

Independent Financial Adviser (IFA)
A person who gives independent, unbiased advice and unrestricted advice on retail investment products, acting in the best interest of the client.

Individual Savings Account (ISA)
A tax-free savings account, where the interest earned does not need to be declared on the savers tax return. There are 3 types of ISA available, a cash ISA, a Stocks & Shares ISA and a Junior ISA. These accounts can be tax efficient or tax free.

Inflation
When prices and wages go up or increase compared with previous years.

Insurance
Compensation for specified loss, damage, illness or death, in return for a premium.

Insurance Premium Tax (IPT)
A tax imposed on general insurance premiums by the government. This is included in the price of your home insurance.

Instant access savings account
An instant access savings account is an account that gives you instant access to your savings funds when you need them. Interest is usually paid on the money in the account. Interest rates vary depending on balances.

Interest
The extra money that is paid to you by a building society or a bank, when you save your money with them. Or the extra money you have to pay back when you have borrowed money.

Interest-free
No interest is charged on money that you borrow.

Interest Rates
Mortgages: This is the rate at which the lender calculates the interest they charge the borrower for the mortgage, expressed as a percentage.
Savings: This is the rate at which is paid to a saver for money that they have deposited in a savings account.

Interest only mortgage
With interest only mortgages, your monthly payments only cover the interest on the amount you owe (so you're not reducing the outstanding sum each month).
You’ll need to have a plan in place to repay the outstanding amount at the end of your mortgage term.

Internet Banking
Carrying out financial transactions online.

Investment
Providing money or capital to an entity, with the expectation of receiving a return at a later date. Investments almost always carry an element of risk and, as a result, asset values can move up or down. Investments are typically designed for the duration of 6 years or more.

Key Facts Illustration (KFI)
This sets out details of the mortgage product that a customer is interested in. All mortgage lenders are required to set out the details in a Key Facts Illustration in the same format, so it’s easier for you to compare different mortgage deals.

Lease
A lease is a contract between the leaseholder and the landlord giving a legal interest in the property for a fixed period of time, usually in return for rent.

Leasehold
Leasehold ownership is simply a long tenancy, the right to occupy and use the property (often a flat) for a long period. This will usually be for 99 or 125 years and the property can be bought and sold during that term. The term is fixed at the beginning and decreases year by year.

Land Registry
A Government department that records registered land in the UK (or ownership), along with details of that land such as mortgages or sales.

Legal Assistance
This provides 24 hour access to personal legal advice over the phone and cover for legal costs up to £50,000 for help with employment disputes, property disputes, personal injury claims, contractual disputes, motoring prosecutions and tax protection. You also have cover for the irrecoverable loss of your salary or wages if you attend jury service.

Legal Costs (mortgage)
There will be legal costs involved in the purchase or remortgage of a property. For more information on these, please speak with your solicitor or us.

Legal Interests
Someone who has a financial interest in your property such as a mortgage provider.

Legal tender
Legal tender varies by country – it is the money recognised in that country as valid tender/currency to buy goods and services. In the UK, the legal tender is Pound Sterling.

Lending Into Retirement
When the mortgage term exceeds beyond the customers retirement age.

Liabilities
These are the debts you owe to creditors, which may include your mortgage, car loan, credit card debt, etc.

Life assurance
Also known as life insurance, it is a type of insurance that will pay an amount to your estate when you die. This can be arranged to pay out a set lump sum or a decreasing amount that reduces in line with a mortgage.

Lifetime Allowance also Standard Lifetime Allowance
A limit set by HM Revenue & Customs on the combined value of all pension schemes held by an individual upon the realisation of pension benefits (before a tax charge applies).

Lifetime Annuity and 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.

Loan to Value (LTV)
The loan to value represents the amount you are looking to borrow (or the remaining amount of your existing mortgage) as a percentage of the value of the property. For example, if a property is valued at £100,000 and you have a £80,000 loan, the LTV is 80% (80,000/100,000 x 100 = 80%).