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Neighbourhood Watch

Where a property is in an area designated as a neighbourhood watch area by the National Neighbourhood Watch Association (NNWA).

Net rate

Net rate of interest is the interest rate payable after any income tax is deducted (if you do pay tax).

New Build Property

The definition of a 'new build' means a property that has not been occupied within two years of being newly constructed, converted or refurbished.

No Extended tie-ins

You won't be tied-in to any extended Early Repayment Charges.

Notice of default

Legal notice given by the mortgage lender detailing a payment default (missed payments) by the borrower. This notice will also contain details of the steps the borrower must take to pay this off and by what date, otherwise the property may be taken over by the lender (see Claim for possession).

Occupational Pension
Types of pension scheme only available through employers and run by pension scheme trustees. There are two main types - defined benefit (final salary) and defined contribution (money purchase).

Offset mortgage
Offset mortgages allow you to cut down on the interest you pay on your mortgage by sacrificing interest earned on your savings (held with the same lender in a savings account).

Open Market Option
An annuity does not have to be bought from the pension provider. The Open Market Option allows customers to shop around and compare annuity rates and purchase an annuity using their pension fund with another insurance company. Competition in the market means the level of annuity income offered in return for a pension fund varies between different annuity providers. Some annuity options are also only available with certain providers.

Overdraft
An amount of money (called a credit facility) available from a building society or bank that allows you to spend more money than you have in your current account. The ‘borrowed money’ will usually incur extra charges and costs. 

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 or personal loan earlier, or make underpayments in the future (conditions apply).

P.a.
'Per Annum', which means 'each year'.

Part and part mortgage
This is an option that lets you repay part interest-only and part repayment each month.

You’ll need to have a plan in place to repay the outstanding amount at the end of your mortgage term.

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’ve had your 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).

If you want to find out more information or apply for a payment holiday please call us on 08457 30 20 10.

Pension Commencement Lump Sum
Most pension schemes include the option to take a portion, usually 25%, as a lump sum without any deduction of tax (subject to certain limits).

Permanent Resident
To be considered a Permanent Resident of the UK, you must have Indefinite leave to remain in the UK and you should consider the UK as your home.

Personal loan
A personal loan is a convenient way of borrowing money for almost any purpose, and fixed monthly repayments mean it's easy to budget your finances without having to worry about changes to interest rates.

Personal Identification Number (PIN)
A code of four numbers that you type in when you use a debit or credit card in a shop or restaurant, or when shopping online. (You must make sure you remember it, but don’t share it with anyone else.).

Personal Possessions Outside Home
Cover for accidental loss or damage to items that you usually take out of your home.  Included as standard with our Home Insurance cover and as an optional extra with our Home Insurance Essentials cover.

For example:
Clothes and personal Items, Camera & Video Equipment, Portable musical instruments, Personal Laptop computers, Camping equipment (but not whilst in use)

Sports equipment (but not whilst in use), Pushchairs & wheelchairs, Children's electric toys, Telescopes & binoculars and Money.

The cover is for anywhere within Europe and for up to 60 days elsewhere in the world. If you have any of these items that are worth more than £2,000 they will need to be listed on the policy.

Porting
Most of the mortgage products available through Rafidain Bank are "portable" which means that they may be transferred from one property to another when you sell one property and buy another (terms and conditions apply).

Product Fee
A fee charged on some mortgages to secure a particular mortgage deal. For mortgages reserved on or before 3rd March 2010, this was known as a reservation fee.

Professionally Maintained Alarm
This is an alarm installed by a NSI (incorporating NACOSS & ISI) or SSAIB approved company, and is annually maintained by that company.
NSI stands for "National Security Inspectorate" and SSAIB stands for "Security Systems and Alarms Inspection Board". Both these organisations are independent and provide inspection certification services across the security industry.

Property Valuation
When you apply for a mortgage we may ask you to pay a valuation fee to cover the cost of valuing your property. The valuation fee is payable prior to valuation and is non-refundable if the valuation is carried out. The valuation is very basic and is carried out for our benefit. We strongly recommend that you have a more thorough survey undertaken, such as a homebuyers report.

This will tell you about the quality and condition of the house you want to buy. There is an additional fee for this service, which can be arranged through Rafidain Bank.

Prudential Regulation Authority (PRA)
The PRA works alongside the Financial Conduct Authority (FCA) creating a “twin peaks” regulatory structure in the UK.

On 1 April 2013 the PRA became responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. In total the PRA regulates around 1,700 financial firms.

Rebuild Cost
Rafidain Bank buildings insurance covers the rebuilding cost of your home if it is damaged or destroyed by a number of different events such as storm, fire, flood and subsidence.

Buildings means the home and its walls, terraces, gates, fences, hedges, paths, drives, hard courts, patios, swimming pools, fixtures and fittings (but not television, radio and satellite dish aerials, aerial fittings and masts), ornamental ponds and fountains, tanks, pipes and cables serving the building for which you are legally liable.

The reinstatement value is not the same thing as market price. The reinstatement value is the cost to fully rebuild your home, including site clearance and legal fees. The cost of rebuilding your home varies, depending on where you live.

The cost to rebuild your home will be stated on your insurance renewal or policy document. If it is a new property and you have a mortgage it will be stated in your lender's valuation report.

Note that it is your responsibility to ensure that you are adequately insured. If necessary you should obtain your own insurance valuation from a surveyor.

Recurring Visa Transactions
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.

Redemption Charge
If you enter into a new mortgage with Rafidain Bank and subsequently repay your mortgage more than ten years before the natural term, you will pay a charge (currently £90) unless you are taking a new Rafidain Bank mortgage at the same time.

Remortgage
A remortgage is getting a new mortgage, with a different lender, without moving home. 

Repayment (capital & 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.

Reservation Fee
A fee charged on some mortgages to secure a particular mortgage deal. For mortgages reserved after 3rd March 2010, this was known as a product fee.

Reserve Limit
The amount up to which we are prepared to pay transactions above your arranged overdraft limit. It provides you with more flexibility when managing your money.

Repossessed
This is where a property is ‘taken back’ by the lender if the borrower fails to make the mortgage repayments. The property is then sold so the lender can get their money back.  Always contact your lender as soon as possible if you are struggling with repayments.

Risk
Risk is a term often used to imply downside risk, meaning the uncertainty of a return and the potential for financial loss.

Roof Type
Is the roof thatched or standard (standard is any material other than thatch e.g. slate or tile). If the property is partly thatched it should be classed as thatched.