Money Jargon - The Letter U

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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 U

On this page we explain,
Umbrella Insurance > Underpayments > Unit-Holding > Unsecured Loan > Utilities

Umbrella Insurance

Umbrella insurance is when customers place their collective insurance needs under the care of a single insurer or insurance provider. This umbrella insurance style is easy to manage, but it may not be the most cost effective way of arranging insurance cover.
Umbrella insurance can give added liability protection above and beyond the limits on homeowners, auto, and watercraft personal insurance policies. Individual insurers often offer deals on particular insurance policies but never offer them on all their policies. So surfing around to find value deals on your insurance can save you money but can take longer to arrange. If ease and speed is of more importance to you, using an insurer to provide this umbrella style of cover would suit your needs.

Underpayments

Underpayments are a benefit of a financial product with which the holder is able to pay less than the normal payment charge. Products such as credit cards, and flexible mortgages offer this facility. If a borrower finds themselves unable to make full or indeed any repayments for a short period of time then having an underpayment facility can help.This means that borrowers can take a break from their loan or mortgage when under financial difficulties. Once the difficulties have passed normal payments can be resumed, it is however worth knowing that an underpayment may only be acceptable once overpayments have been made.

Unit-Holding

Unit holding is ownership of a property which is within a common hold, such as a a falt within a block of flats. Common-hold is a fairly new way of owning properties and is an alternative to long leasehold ownership of shared property.
In a block of flats each flat is considered a unit, and each one of these units can be owned individually. The shared areas are then managed by a common hold association, of which only the unit-holders may be members. The management and upkeep of the shared areas is usually financed by an apportionment between the unit-holders. The unit holders can have equal say on the shared areas.

Unsecured Loan

Unsecured loans or tenant loans, are finance for people who rent the property they live in, whether they be council tenants or housing association tenants or live with their parents or friends. The fact they do not have a property that they can use as security for the loan means that an unsecured loan is their way to finance. A property used as security means that the lender has more security against the loan, for this reason unsecured loans usually come with higher interest rates. With an unsecured loan the lender does not have the option of repossessing your home and reselling it in order to recoup the debt you owe them.
Should you default on an unsecured loan you do risk legal proceedings.
If you need finance and have decided a unsecured loan will meet your requirements, spend a little time comparing lenders and products, look at their packages, the rates charged and their terms. Take the best unsecured loan for your own personal circumstances, that could be the one that meets your budget and has the flexibility with repayments.

Utilities

Utilities are services provided by companies, gas, electricity, water, phone are all services. The providers of these services will offer incentives for us to join them, very often through sheer laziness we do not shop around and switch to another provider once those incentives have come to the end of their term. It can seem too much hassle to switch to another provider with better rates. There are many types of utilities and there are real savings to be made by switching to providers who offer deals on their rates.
It is easy to rearrange your utilities yourself, you don't have to pay a company to do it for you. Why be charged for doing something you can do yourself?