Financial Jargon Buster - R
- Rate
- The pricing factor upon which an
insurance premium is based, it is the cost of a given unit of
insurance.
- Rate Review
- Used in group insurance to describe the
review of premium rate at the end of a rate guarantee period.
- Rated
- Describes coverage issued at a higher
rate than standard, usually due to impairment of the insured life.
- Received Date
- The date the contribution was credited
to the account by the Charitable Gift Fund for tax purposes.
- Redemption
- For all our mortgages, if you pay off
the whole or any part of the loan before the end of the mortgage term, you will
have to pay a redemption charge. This will be the amount specific to the
mortgage product specified on the relevant web page and in our brochures. There
will also be an Administration fee at redemption. If you decide to redeem your
Standard Variable Rate mortgage, you would only pay an administration fee. Fees
applied in addition to any interest charges at the time the mortgage is
redeemed are charged to cover our reasonable administration costs. These
include retrieving and checking the Deeds and Documents, formal sealing,
recording of documents sealed and secure postage. (Please note that with some
products, for example the Base Rate Tracker products, certain specific criteria
apply allowing part repayment without a charge.)
- Redemption amounts
- The amount that would be redeemed if
you held the assets for their full term - to their redemption date.
- Redemption penalties
- If you want to pay off your mortgage
early, you may have to pay a fee during the early years of the loan. The fee
may be equivalent to a certain number of months' interest, or it could be a
percentage of the loan. Some lenders only charge a redemption penalty during
the time of the special deal they offer. Others may tie you in for a number of
years afterwards. If you think you may want to repay early, check what
conditions apply before you decide which type of mortgage you want
- Redemption yield
- An estimate of the total long term
returns, including income and capital, on fixed income investments like
corporate bonds and gilts.
- Redundancy protection insurance
- Insurance that continues to meet
mortgage payments, usually for a limited period, if you are made redundant.
- Reinsurance
- The practice whereby one insurer
transfers part or all of the risk it has accepted to another insurer (the
reinsurer).
- Remortgage
- This is when you switch your mortgage
from your current lender to another one. You take out a new mortgage to repay
your current one. You may be able to get a better rate that saves you
money.
- Renewable Term Insurance
- Term insurance providing the right to
renew at the end of the term, without evidence of insurability. The premium
rates may increase at each renewal as the age of the insured is
increasing.
- Renewal
- An agreement to continue insurance
beyond any original term. For group insurance it is often used to refer to the
annual update of membership details and production of annual
accounts.
- Repayment (Capital & Interest) method
- One of two ways used to pay off your
mortgage, the other being the Interest only method. Your monthly payments are
used not only to pay the interest on your borrowings but also a proportion of
the actual amount borrowed. At the end of the term, both the borrowing and
interest on this borrowing would have been paid in full.
- Repayment Mortgage
- Your monthly payments are partly to pay
the interest on the amount you borrowed, and partly to repay the amount you
borrowed. At the end of the mortgage, the capital and the interest is all
completely repaid. It is also known as a capital and interest mortgage
- Repayment plan
- A schedule you agree with us for
repaying your One account borrowings over the mortgage term. Your monthly One
account statement will help you to keep track of whether you are ahead or
behind your repayment plan.
- Repossession
- This is when a borrower fails to pay
back their loan in accordance with the Terms and Conditions of that loan and
the lender exercises their legal charge over the borrower's property by taking
legal ownership.
- Rescission
- Termination of an insurance contract by
the insurer on the grounds of mis-statement by the insured.
- Reserve
- The sum set aside by an insurance
company as a liability to fulfil future obligations.
- Restricted Funds
- Grants which are made for a clearly
specified purpose and can be used for none other.
- Retention
- The amount of risk retained by an
insurance company and not reinsured. Also used in reference to the portion of
premium that is used by the insurance company for administration
costs.
- Retrocession
- A process by which a reinsurer obtains
reinsurance from another company.
- Reversionary bonus
- A bonus added to the value of your With
Profits policy each year.
- Rider
- An amendment to an insurance policy that modifies the policy by expanding or restricting its benefits or excluding certain conditions from coverage.
- Rights Issue
- A means whereby a company may raise
capital from its own shareholders. It does this by offering additional
newly-issued shares to the shareholders at a discount on the price at which
they will later be offered to the public, usually on the basis of a certain
amount of new shares for every old share held. Most rights issues are handled
by investment bankers who also underwrite the issue by agreeing to buy any of
the newly-issued shares which are not taken up by shareholders.
- Running yield
- An estimate of the annual rate of
interest paid out by fixed income investments like corporate bonds and gilts.
It doesn't take into account any increases or decreases in the capital value of
the investment.
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