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The Letter I
Saber Finance know the finance world is full of terms, phrases, buzz words and jargon.

On this page we explain,
Income Multiples > Independent > Insurance > Insurance Broker > Insurance Claims > Insurance Excess > Insurance Exclusions > Interest-only Mortgage > Investment > ISA Mortgages

Income Multiples
The income multiple is the calculation used by a lender when allotting a mortgage amount. Income multiples can be used as a guide to see how much a mortgage lender or mortgage broker will be prepared to advance you on a mortgage which you can then use as a guide to find properties that fall in your price range.
As a rough rule the maximum amount normally available to use to purchase property will be three times your annual salary. Or alternatively, it tends to also be two and a half times your joint income if buying property with a spouse or partner. The income multiple rule is not set in stone, there are mortgage lenders who will lend more than the typical income multiples.
Want to become a homeowner and step on the ladder? Source out a mortgage lender and find out how much you can lend using the mortgage comparison tools.

Independent
Independents are agents that are not attached to a specific finance product or provider. So independent agents have a larger pool of finance products to choose from when trying to get their customers a highly competitive deal. Independent agents should also observe some key principles when carrying out their business.
The independent agent should ask for sufficient information to be in a position to form a comprehensive view of your needs. The independent agent should then select products from the market, or from a panel of companies believed to be the best in the market. The independent agent should be in a position to offer the best advice, both on the products selected and your needs and ability to pay. Independent agents are obliged to give you the full details of any commission they receive on the policies and investments they recommend as well as the level of charges.
Independent financial adviser's as well as tied agents are regulated by the Financial Services Authority. If an adviser is not, they are trading illegally.
Use our finance tools and save yourself hours searching the internet for cheaper finance.

Insurance
Insurance is protective "what if" cover, for our property, possessions, life, health, and pets against any harm, damage and theft. No one wants harm to come to themselves their family or possessions, but it can be a real possibility, so insurance policies are taken out to lessen the financial hardships that may arise.
Using the internet to shop around can save your feet and your time and receiving insurance quotes from several providers will enable you to quickly find savings on an insurance policy.
Are you after the best insurance cover, or searching for insurance providers to suit your needs? From vehicle insurance to home insurance, large savings can be made on the cost of your policies. Use our insurance tools to save time finding quotes even on car insurance.

Insurance Broker
An insurance broker is often an independent agent whose works on your behalf to find you a policy from a range of insurance providers. Some insurance brokers trade under titles like agent or consultant, and where this happens, they might only search a handful of insurance companies to find you a policy.
Someone who works directly for an insurance company can only act as an agent for that particular company and can only recommend their insurance products. Whoever you use is obliged to tell you what sort of agent or intermediary they are.
The insurance tools should enable you to save money on selected insurance needs.

Insurance Claims
An insurance claim is the process used to recover a loss under an insurance policy.
When taking out insurance you should make a point of finding out the claims procedure and if any special steps are required to make the claim.
When making a claim on the insurance policy you should check the details to ensure you have not breached the exclusions of the policy and invalidated it. Check that the insurance policy covers the claim, as this will save your time and effort from being wasted. Always follow the instructions of your insurer.
When claiming always be honest, because if a claim is investigated and found to have been dishonest it will be invalidated and no payment issued.
Finally be patient your provider will be as efficient as possible, they are trying to provide the best service they can and a quick resolution to a claim also means less cost to them.
The insurance best buys has the insurers best deals on insurance policies.

Insurance Excess
Insurance excess is the term for a preset non recoverable insurance condition. This excess is usually a set amount or a percentage of a insurance claim that the policy holder is responsible for paying. This exists to limit any fraudulent claims and reduce the risk to the insurers.
When taking an insurance policy out you enter into a legally binding contract, where you agreed to pay the first £X amount of any claim irrespective of blame. This is excess and it is an uninsured loss and has to be paid as a condition of any claims procedure.
When taking any insurance out you should make yourself aware of any procedures or conditions relating to the policy.
Need an insurance quote, try the insurance search directory and save time searching online.

Insurance Exclusions
Exclusions as they apply to insurance, are specific conditions that the policy does not offer cover for. There are always exclusions in an insurance policy. No policy can cover every possible event that might arise, so insurers put exclusions into a policy to limit their exposure to the risks being run so that they can measure and quantify the risks they are accepting.
For example, a health insurance policy could provide a temporary income if an injury is sustained. But if that injury was received whilst under the influence of alcohol the insurers may refuse the claim, if the policy excludes injuries suffered as a result of drinking or drug abuse.
When you agree to a insurance products cover, you enter into a legally binding contract with the insurer, where you agree to the exclusions and other conditions of the policy irrespective of any blame connected to a claim.
Need an insurance quote, try the insurance best buys.

Interest-only Mortgage
An interest only mortgage works in the same way as an endowment mortgage works, the mortgage holder only repays on the interest and not on the capital of the mortgage.
If you have a interest only mortgage, you will pay off the interest on the mortgage in monthly payments for a fixed term, terms are usually five to seven years. Then after this term you either refinance, pay of the balance remaining with a lump sum, or start to pay off the principal loan, in which case your payments can jump sky high.
After property information or want to find a mortgage lender? Try the mortgage tools.

Investment
Investment in property, is using capital in the housing market rather than the stock market. Home investment is a term which covers the performing of renovation work or improvement of a home, increasing its value. Investment in property can be a complicated subject to cover because of the myriad of different ways to invest in property and because of the investors aims, that is what you want out of property investing.
You may be looking at buying to let, this is buying a property with the purpose of letting it out. Perhaps property redevelopment interests you, this is buying a building in need of maintenance and modernising with the intention of selling it later to make a profit. Because of the stock markets recent sluggish performance you may be looking at other ways to use your finance, such as buying a second home or buying a holiday home. You may be a home owner looking at improving your properties value, performing work on the building could lead to an increase of thousands on its market value.
If you are interested in property investment, check out our investment section in the property finance pages.

ISA Mortgages
An ISA mortgage works loosely in the same way as endowment mortgages and interest only mortgages work, the mortgage holder only repays on the interest and not on the capital of the mortgage. ISA stands for individual savings account.
With an ISA mortgage you will be expected to repay the interest on the loan monthly, you then take out the ISA to build up a fund which will pay back the capital at the end of the mortgage term. An ISA comes with tax benefits too as the savings that you accumulate are free from income tax or capital gains tax. Your investment could grow quite rapidly resulting in you being able to pay off your mortgage earlier than you had first hoped for.
There are two types of ISA, a maxi and a mini. The government will allow you to put £7000 a year into an ISA used to back up a mortgage.
The Maxi ISA is usually a stock market account and is more likely to generate the money to pay off the capital on your mortgage. You are allowed one maxi and up to three mini ISA’s. ISA’s can be viewed as cheap when the stock market has fallen, because you have to pay less for the units that you are funding. However you should consider the fact that any sort of interest only mortgage carries more risks than the traditional repayment mortgage. An ISA is a form of interest only mortgage, relying heavily on the stock market and you are not guaranteed to make enough funds to pay off your mortgage.
Whatever the mortgage you are after, the mortgage tools will enable you to find it.

If you are in any doubt about any financial product or term we recommend that you seek advice from a financial advisor.

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