Valuation

This is the estimated price that your property is worth.

Valuation Report

This is carried out for the purpose of a mortgage and is prepared for the lender. A survey will also help you to find out independently whether the price is reasonable. Your mortgage lender will almost certainly insist on a basic valuation to make sure that the property is worth the amount you are paying for it. They want to ensure that you will be able to sell it again and therefore that is it safe investment. Although it is often referred to as a survey it doesn’t go into nearly as much detail as a homebuyer or full survey would do.

Value Added Tax (VAT)

A tax on the estimated market value added to a product or material at each stage of its manufacture or distribution, ultimately passed on to the consumer.

Variable Rate

As you would expect from the name variable mortgage rates go up and down and generally don’t stay at the same level for too long. This is because the interest rate and subsequent level of repayment varies with the lender’s interest rate. This is usually derived from Bank of England base rate or some other index. One such index is the banks’ base rate – an average of the rates of several leading lenders.

Visa Card

A card linked to the VISA network worldwide.

Volatility

The degree by which share prices in a particular stockmarket or sector go up or down. Usually measured by the movement in a particular index.

Voluntary Scheme

A pension or other benefit scheme in which the members can choose the extent and levels of benefits provided. These are usually schemes in which members pay the contributions or premiums. For example, a trade union or other affinity group may offer membership of a scheme providing life assurance cover.