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IG
premium
-indemnity guarantee premium (IGP) -insurance premium
which insures the lender against any loss of money if you default on your
loan or get repossessed. This usually applies only if you borrow more than
70 per cent of the price asked for the property you are buying. Even though
you have to pay for the insurance premium, you must remember that you are
not covered by the insurance, the lender is.
illustration
- example of the monthly cost of a mortgage and
other expenses associated with the loan such as set-up costs.
incentive
- inducements such as cashbacks offered to borrowers
to persuade them to take out a loan with a lender.
income
-
see sub menu
Individual Saving Accounts (ISA)
- A new way of holding cash deposits, life
assurance policies and investments in stock and shares in a tax privileged
way. ISA's are intended to build upon the experience of PEP's and TESSA's.
The Government have stated that ISA's will be available for a minimum of ten
years.
individual voluntary arrangement (IVA)
- introduced under the Insolvency Act 1986 with the
intention of allowing an individual to avoid bankruptcy and make maximum
possible restitution to creditors. An IVA is seen as preferable to
bankruptcy as the debtor can retain his tools of trade and, in the case of a
professional person, continue to practice, or hold company directorships.
IVAs can be set up for either a person or a company. An Insolvency
Practitioner petitions the High Court for protection for a borrower debtor
under an IVA. A proposal is put to the creditors of whom 75% must accept. If
this is achieved, the arrangement becomes binding upon debtor and all
creditors named in the agreement. If the debtor fails to meet payments under
an IVA the Insolvency Practitioner is likely to petition for the individual
to be made bankrupt. Whilst bankruptcy normally lasts for only three years
some creditors insist that IVAs last a longer period.
initial interest
- the payment of interest to cover the period
between the date of completion and the normal date from which an interest
payment is due. For example if mortgage payments are normally due on the
30th of a month and the loan completes on 14th March, the first monthly
payment may be due one month from 30th March, on 30th April. Any interest
due for the period from completion until 29th March will be due with the
initial mortgage payment. Thus, the borrower's first mortgage payment will
normally comprise one full month's payment plus the initial interest.
initial rate
- interest rate that is payable from the
commencement of the loan. Many mortgage products, e.g. fixed and discount,
have an initial rate of interest which will change at the end of the initial
period.
insurance
-
see sub menu
interest only
- interest only mortgage - loan for which only
payments of interest are paid to the lender during the term of the loan. All
mortgages other than capital and interest repayment loans are a form of
interest only loan. Some lenders will allow loans to be set up without any
specific provision to repay the capital at the end of the period this is
known as a pure interest only loan.
introducer
- person who introduces a loan to a lender.
investment income
- income received from investments. This could be
from rental income on investment property, dividends on equities or interest
on deposits with financial institutions.
irregular earned income
- additional income over basic salary that is of an
erratic nature; additional payments to which the employee may be entitled
but which are not received on a regular basis.
IVA
- individual voluntary arrangement (IVA) -
introduced under the Insolvency Act 1986 with the intention of allowing an
individual to avoid bankruptcy and make maximum possible restitution to
creditors. An IVA is seen as preferable to bankruptcy as the debtor can
retain his tools of trade and, in the case of a professional person,
continue to practice, or hold company directorships. IVAs can be set up for
either a person or a company. An Insolvency Practitioner petitions the High
Court for protection for a borrower debtor under an IVA. A proposal is put
to the creditors of whom 75% must accept. If this is achieved, the
arrangement becomes binding upon debtor and all creditors named in the
agreement. If the debtor fails to meet payments under an IVA the Insolvency
Practitioner is likely to petition for the individual to be made bankrupt.
Whilst bankruptcy normally lasts for only three years some creditors insist
that IVAs last a longer period. |
I
IG Premium
illustration
incentive
income (includes
submenu)
individual saving
accounts
individual
voluntary arrangement (IVA)
initial interest
initial rate
insurance (includes
submenu)
interest only
introducer
investment income
irregular earned
income
IVA
Introduction
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