Glossary > The Letter P

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

On this page we explain,
Payment Break > Payment Protection > Personal Loan > Pet Insurance > Poor Credit > Property Redevelopment > Property Valuation

Payment Break
Payment breaks are an advantage of certain financial products, such as mortgages, that allow the holder to temporally stop making repayments for a limited or agreed term. Payment breaks are more commonly called payment holidays.
Payment holidays can be useful in helping to get over any short term financial problems and to help with budgeting. Some flexible rate mortgages if not most, require that an overpayment is made before an underpayment or payment holiday is acceptable. Some mortgage lenders use these payment breaks as part of their advertising campaigns.
See also overpayments and underpayments.

Payment Protection
Payment protection is used to describe an insurance policy which provides you with a means of continuing to pay your mortgage. When you take out a mortgage, life cover is usually provided by an endowment or a mortgage protection policy. Payment protection insurance is worth considering if it gives you piece of mind.
When considering a payment protection policy, check carefully what it covers. The basic cover protects your mortgage payments if you lose your job. Additional cover is available for risks like accidents, sickness and long term unemployment. Before buying the policy, check the details carefully to make sure you're aware of what is covered and what's excluded.
If you are after insurance of any type, try our insurance tools.

Personal Loan
Personal loan is a term used to describe homeowner loans and tenant loans. Essentially a personal loan is a loan taken out by a individual person hence the name. A personal loan should be tailored by the lender to an individuals financial requirements or circumstances. Rates charged on the personal loan could also vary as a result of credit rating and security. Thus a person with problem credit could well find they are paying a greater APR than some one with a clean credit rating.

Secured Loans or Home Loans
A homeowner loan can also be called secured loans because they are secured on the borrowers property. This means better rates and terms but any non payments or arrears could put that property at risk.
If you are a homeowner after information, try our home loans section.

Unsecured Loans or Tenant Loans
Tenants will not have a home to offer as security on a loan, maybe because of living in a council or housing association property. Tenants may be classed as a higher risk by lenders so the interest rate, terms and conditions and the APR will be higher than secured loans or homeowner loans. This should not stop borrowers applying for a personal loan because keeping up regular payments would help create and improve credit ratings for the future. Which is helpful when considering a mortgage, loan or other finance.
If you are after information, try our tenant loans section.

Pet Insurance
Pet insurance is an insurance policy which covers family animals against the unexpected or expensive costs. Our Pets are very precious to us, but there are times when they require a little attention. Vet bills as we all know can be very expensive, and surgery even more so, but we want our pets to be healthy and enjoy life.
Policies can be paid for by monthly premiums or one total payment each year. Premiums are carefully calculated taking into account average veterinary fees, where you live, the age of your pet and it’s breed. Pet insurance as with any other form of insurance has a excess, this is the amount of money you have to pay towards the cost of any initial treatment your pet requires.
So pet insurance is a shrewd move, and can protect owners from costs of several hundreds of pounds for just a few pence a day.
If you are after pet insurance, use the insurance best buy table and change the term to pet.

Poor Credit
This is a term used to describe a low rating in credit scoring due to credit repayment history. County court judgments, mortgage defaults, loan arrears or other credit debt repayment problems lay on the persons financial record and lead to a rating of poor credit. Credit scoring is used by lenders to determine the level of credit risk you are before agreeing to lend fresh finance. Visitors can find credit to suit their score even if it is a poor credit rating. Your credit history and suitability will be on a national credit database but it is up to individual lenders whether the risk is acceptable.
We have a quick information page on credit ratings, if you wish to know more.

Property Redevelopment
Property redevelopment is a term used to describe the process of buying and then altering a buildings current condition.
You could be looking at modernizing an old town house or even returning a property to its original built condition, this can include using any period fittings. The property can then later be placed on the market for a resale which should make you a tidy profit on your original investment or maybe even yield the funds for your next project.
If you are looking at property development as a way of investing capital approach it the same has buying to let and ensure you are aware of all the requirements needed and have a suitable plan. This will enable you to approach developing property logically and professionally and should minimize any financial surprises.
There is a section on property investment for those who are interested.

Property Valuation
A property valuation is a quick survey of a building by a surveyor, with the purpose of assessing its value and worth. The valuation is used by a lender to gauge whether to lend a mortgage on the property.
The valuation is paid for by the potential borrower and typically, the surveyor will look around the property and talk to local agents about the property values prevailing in the area. Valuation costs are on a sliding scale, with the cheapest buildings costing less and more expensive property costing more to assess.
For more information on property buying, try our mortgage section.

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

If you're after Finance Information, Saber Finance is here to help.