Early Redemption Penalties

Charges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider.

Earning Limit (Lower)

The minimum level of earnings which must apply in order for National Insurance Contributions to be payable by an individual.

Earnings Limit (Upper)

The maximum level of earnings on which National Insurance Contributions are payable.

Eligibility Date

The date on which an individual member of a specified group becomes eligible to apply for benefits.

Endownment

Are unusual products that combine a savings/investment product with an element of life assurance. Their use goes beyond mortgages and they are quite complicated. As with other interest-only mortgages you pay interest on the full amount of the capital for the entire duration of the loan term. The remainder of your monthly payment goes towards a premium for an endowment policy. A portion of this premium is invested and used to pay off the capital at the end of the mortgage term. There is not usually any absolute guarantee that your repayments will actually be enough to reach the level of your loan.

Early Redemption Penalties

Early Redemption Penalties apply if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts and can be particularly severe within the first year.

Earnings Limit (Lower)

The minimum level of earnings which must apply in order for National Insurance Contributions to be payable by an individual.

Earnings Limit (Upper)

The maximum level of earnings on which National Insurance Contributions are payable.

Eligibility Date

The date at which an individual becomes eligible for benefits.

Endowment

Life assurance policies are attached to the mortgage which is designed for the client to pay off the amount originally borrowed at the end of the mortgage term. Endowment policies pay you a fixed amount on a set date or if you die before that date, in other words it is both a way of saving and life insurance. People sometimes use endowments to repay interest only mortgages. The drawback of them is that it is often unclear how much you have to pay in charges and the plans are often very rigid, so if you start an endowment then decide to cancel it, you might not get back the amount you initially paid in.

Endowment Mortgage

Endowments are unusual products that combine a savings/investment product with an element of life assurance. Their use goes beyond mortgages and they are quite complicated. As with other interest-only mortgages you pay interest on the full amount of the capital for the entire duration of the loan term. The remainder of your monthly payment goes towards a premium for an endowment policy. A portion of this premium is invested and used to pay off the capital at the end of the mortgage term. There is not usually any absolute guarantee that your repayments will actually be enough to reach the level of your loan.

Equity

Your equity in the new home is the amount of your deposit. The bigger the deposit the lower the proportion of the loan in comparison to the property value. The less that a lender has to contribute to a property the greater their security and willingness to lend you the money will be. A bigger deposit could also be seen as stronger commitment to the purchase. Over time a proportion of your repayments will go towards reducing the capital that you owe to the lender so assuming the value of the property is unchanged the amount of equity you own will have risen.

Equities

Stocks and Shares.

Equity Release

Equity release allows you to generate either a lump some or a regular income in return for allowing the lender to take ownership of a portion of your home. These are often used by people in later stages of life who have paid off all or most of their mortgage and are looking to raise funds without borrowing money.

Escalation

Increase in benefit payable during the payment term of an insurance claim that is not settled via a lump sum payment. For example, claims under an Income Protection Policy might annually in line with the Retail Price Index.

Estate

The total land, chattels, investments owned by an individual.

Euro

The European Single Currency.

Exhange of Contracts

Contracts are passed to the solicitors of the buyer and seller to examine and confirm the legal agreements for buying and selling a property are correct and in order. Once checked the solicitor will ask their respective clients to sign the contracts and send a copy to the other solicitor for signature by the other party. This is the ‘exchange of contract’ and the transaction between the seller and the buyer is then legally binding.

Execution Only

Customers buying financial products with no advice, research or recommendations from an official broker.

Experience Rating

Premium rate for a group risk is determined, wholly or partially on the basis of the group’s claims experience to date.

Express Money Transfer

A foreign currency payment to an individual or organisation delivered electronically to a bank. The process takes around 2-5 days, depending on the currency and destination.