Money Jargon - The Letter T

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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 T

On this page we explain,
Tenant Loan > Term > Tied Agents > Title Deeds > Tracker Rate Mortgage > Travel Insurance > Trustee

Tenant Loan

A tenant loan is also known as an "unsecured loan." It is personal finance which is borrowed and then repaid over a set term. The fact that a tenant will not have a property to use as security means that they will require a tenant loan and not a secured loan. People who are suitable for applying for tenant loans include people living at home, council tenants or private property tenants.

Comparing Tenant Loans
The term of a tenant loan is the period of time over which the finance is taken out and then repaid. Many tenant loans come with set term periods. As a rule the shorter the term time the higher the monthly repayments work out to be, for shorter terms the lower repayments will be.
The repayments on a tenant loan are calculated using several different criteria and factors. Credit status, lenght of time at present address, marital status ect are taken into consideration. Lenders charge interest on the loan, this is shown as the loans APR. As well as the capital and the APR, lenders also charge administration fees and arrangement charges. By adding all these costs together the lender can calculate the overall cost of the tenant loan. The monhtly repayments are calculated by dividing the overall cost of the loan by the term.

Term

The term is the period of time over which finance borrowed is to be repaid. Many finance products come established with pre-set terms arranged, however should you require it other lengths of terms may be available subject to the applicants individual circumstances and with the consent of the lender.

Tied Agents

Tied agents are advisers or sales people who sell products from a single company or product pool. They are not independant and so will not be able to offer you products from other companies. They may however still have some very competitive products to offer you.
Independent are agents are not attached to a specific finance product or provider, they will have a larger product pool to compare between. Whether Independent tied, agents are regulated by the Financial Services Authority. If an adviser is not regulated by the FSA, they are trading illegally.

Title Deeds

A title deed is a legal document which illustrates who officially owns a property. The title deed will show the boundary of the property, that shows you what land you own and where your boundarys are, you can ask your solicitor or conveyancer for a copy of your boundary plan. It can come in very usefull should there be any future disputes to settle. Deeds and other legal documents prove the ownership of freehold as well as leasehold properties. Deeds often include all deed transferring ownership of the property over many years.

Tracker Rate Mortgage

A tracker rate mortgage is one that follows the movements in the base interest rate. A tracker rate mortgage is tied to the base rate, lenders add their own interest rate on top of this base rate and the mortgage follows the base rate should it rise or fall. Lenders will usually add about 1% to 2% on top of the base rate, this ensures that they make profit on the mortgage themselves.
The tracker rate mortgage contract will determine how the mortgage rate changes, but they will usually increase and decreased in line with the base interest rate. All lenders have to be competitive so good deals can be found if you shop around.

Travel Insurance

Travel insurance is insurance cover for people who are vacationing or even working abroad. Travel insurance is also one of the most easy insurances to justify, if holidaying or working in foreign climes, then you should consider what will happen if the unforseen happens and you are beset by some difficulty, what if you require medical attention, what if for some reason you have to travel some distance, what if your luggage is lost or stolen.
Travel insurance removes the financial worry from these situations leaving you free to deal with your present situation. Most insurance companies provide online systems that let you buy their travel insurance online, this can help to keep the 'overheads' cost down. The lower the overheads the cheaper the insurance can be offered to the public. Cover can be arranged within a matter of minutes and certificates can be printed from a PC, providing you with instant holiday insurance.

Trustee

A trustee is a person who has legal ownership of a property but is actually holding it for the benefit of someone else who is known as the beneficiary. The word trustee is a legal term that refers to a member of a trust, which can be set up for any of a variety of purposes, and is entrusted with the administration of property on behalf of others.
Being a trustee carries a significant legal responsibility, you have basically promised to hold and administer something, completely and wholely for the benefit of somebody else.