A to Z of Finance (Jargon Buster) - The Letter D
The world of Finance is full of buzz words and Jargon. In this section I'll translate a whole range of finance terms so you won't get caught out.
Index A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Debt Consolidation
To consolidate your debts means to bring together all your debts, take out a new loan in order to repay all of these debts. Doing this would mean that instead of several monthly repayments to worry about, you would have just the one, more affordable payment each month. This single payment would help your monthly budget as it would be more manageable.
Defaults
If you have defaulted on a loan or mortgage, it means that you are more than 30 days behind the date your repayment was due. This will be marked on your credit record and would lead to a CCJ if no further payment was received or received very late.
Deposit
The amount of money you put towards the purchase of: a property, car etc. Most lenders will require at least 10% deposit of the purchasing price on property. Some lenders will lend 100% or more but only to Status Applications with no bad credit history.
Discounted Rate Mortgage
This means interest is charged on a mortgage at a stated discount rate for a set period of time.
This means your monthly repayment will go up and down
depending on the variable base rate changes. These type of mortgages tend to lock you into
the discount rate mortgage for a minimum period and you may find they include a penalty clause
if you try to swap your mortgage or pay it off earlier.
