Money Jargon - The Letter M

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Money Crocodile knows the finance world is full of terms, phrases, buzz words and jargon. The below terms will help you with terms beginning with the Letter M

On this page we explain,
Medical Loan > MIG > Motorcycle Insurance > Mortgage Deed > Mortgage Loan > Motorbike Loan > Mortgage Payment Protection Insurance > Mortgage Term

Medical Loan

A medical loan is finance arranged for a specific event, in this case for a medical procedure.
NHS treatment has loneger and longer waiting lists and people are choosing more and more to opt for private treatment in order to obtain their procedures quickly..
If these consumers do not have readily disposable savings or the income to finance these medical procedures, then they may have the coice to opt to use the credit facilities the clinic has provides. An alternative would be to shop around for a good deal, a homeowner loan or a tenant loan with which to finance the medical procedure. A loan with good interest rates can sometimes work out to be a cheap option.

MIG

The MIG or mortgage indemnity guarantee is a higher lending charge.
Mortgage lenders prefer to lend only a certain percentage of a properties value in order to keep the risk they are taking to a minimum. The MIG fee is charged by a mortgage lender when a customer wants a mortgage exceeding a set percentage of a properties value. The MIG's fee is used by the lender to purchase an insurance policy to protect themselves in the event of borrowers defaulting on their mortgage.
The fee is insisted on by the lender at the start of the mortgage and is just one of the many costs of property buying. Some mortgage lenders will waiver these charges in order to attract new customers.

Motorcycle Insurance

Whatever the number of wheels, vehicle insurance is a legal requirement for all drivers, from cars to motorbikes, they all have to be insured to be on the road. You have to be covered by at least a minimum insurance policy before you can take to the roads - also see Vehicle Insurance

Mortgage Deed

This is the document the borrower signs to agree to the terms set out in the Mortgage Offer. This document is sent to the Land Registry who register the Mortgage as a Financial Charge on the property which is shown in the Charges Register. The mortgage deed is a legal document relating to the mortgage lender’s financial interest in the property and containing the terms by which the loan has been agreed.
If the property is in England, Wales or Northern Ireland, this document is called the mortgage deed, If the property is in Scotland, the document would be known as a standard security.

Mortgage Loan

A mortgage loan is borrowed finance used to purchase a property. Almost all mortgages are partly secured on the value of the property. Mortgages terms can vary and there are a 3 basic types of mortgage.
A - Repayment Mortgages.
B - Interest Only Mortgages.
C -Flexible Mortgages.

Repayment Mortgages
The repayments on a repayment mortgage pays off both the original amount borrowed (the capital), as well as any interest accrued over the mortgage term. Payments are made monthly.
Interest Only Mortgages
With interest only mortgages, your monthly payments only pay off the interest accrued on the loan. The original amount (the capital) remains the same, in order to make sure the capital is paid off at the end of the mortgage term you should make suitable investments with your money.
Flexible Mortgages
Flexible mortgages give the borrower the ability to fluctuate payment amounts subject to the lenders conditions. Should you have extra money for a period of time then you would be allowed to make overpayments on your mortgage to ensure it is paid off sooner. If however you find that you cannot make a payment one month then so long as an overpayment has been made in the past an underpayment will not be punished. Very handy if your earnings fluctuate regularly.

There are many variations on these three types of mortgages, some will have products attatched to entice customers.You may find that interest rates vary from lender to lender.

Motorbike Loan

Few of us, when looking for a motorbike, be it new or a classic bike, can actually afford to purchase the vehicle without borrowing money, this means that a financial loan may be worth considering.
If you are buying a bike from a dealer, then chances are that you will be offered a loan to purchase the bike. These sort of financial arrangements can be very costly and you may find that a personal loan would be a cheaper option for you.Think very carefully and compare before you sign any agreements.
If you are buying a bike from an individual or at an auction then you will probably need to have your finance already in place and funds available prior to purchasing.
A loan arranged prior to any purchasing will be far more competitive and cost effective than using a credit card or credit facilities on site at the time.
Looking for finance to help purchase a new motorbike? Well, you will want to find the best personal loan for your budget.
Use our payment calculator to find a personal loan with suitable repayments, it should save you money and time. Or alternatively find lenders using our loan tools.

Mortgage Payment Protection Insurance

Mortgage payment protection insurance or MPPI for short, is cover for you to protect your mortgage payments and insurance premiums for up to 12 months should you be made redundant or are unable to work due to illness, injury or disability.
If you have taken out a mortgage then you should consider what would happen if you or your partner fell ill, you would still have the same mortgage repayments to find each month.
It is for this reason that you should always think about how mortgage protection insurance could be of benefit to you. Mortgage Payment Protection gives you the time to get back on your feet and avoid the worst financial hardships.

Mortgage Term

A mortgage term is the period of time, over which a mortgage loan used to purchase property is repaid. Most mortgages come with established terms of 25 years, however you can opt for a shorter term should your lender be able to offer it to you. Mortgage terms are usually subject to individual circumstances and credit status.
Usually the shorter the term on a mortgage the higher the monthly repayments will be, but you should also remember that the shorter the term the interest charged overall be be less, this means that the mortgage will cost you less over a short term time as oposed to a loner term time.
A mortgage taken over a longer term means monthly repayments should be smaller in size, this arrangement may be better for those who are on a tight budget each month.