Money Jargon - The Letter V

-

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 V

On this page we explain,
Valuation Report > Van Loan > Variable Rate Mortgage > VAT > Vets Bills Insurance > Vehicle Insurance

Valuation Report

A valuation report or valuation survey as it is also known, is carried out to determine the value of a property, a mortgage can be granted if the property is estimated to be worth the proposed mortgage on it. Although the valuation report is referred to as a survey it does not go into nearly as much detail as a home buyers report would. Most lenders will insist on a valuation being carried out to ensure that the property is worth the amount being asked for it. The lender will want to predict the market to ensure that the property will not suddenly decline in value, if the amount of mortgage being applied for is less than the current value of the property, then lenders will consider the mortgage to be less of risk.

Van Loan

Few of us, when looking can actually afford to pay for a vehicle outright. Most of us will need to borrow some sort of finance to pay for it. It could be that you are just starting up your own business and you require van or truck,
If you are buying from a dealer, the chances are that they will offer you their finance products to enable to buy the vehicle. Think very carefully about using these credit facilities. These finance agreements can work out to be far more expensive overall than a personal loan would be.
If you are buying the vehicle from an individual or at an auction you will no doubt need to have your finance ready prior to purchasing.
The cheapest way to get finance for a vehicle is to shop around, examine many loan providers and their terms before you actually go to purchase a vehicle.A loan arranged prior to any purchasing will be far more competitive and cost effective than using a credit card or credit facilities available on site.

Variable Rate Mortgage

The variable rate mortgage is the most commonly used mortgage in the UK, but since it is tied to the base rate it is not always the most cost effective mortgage available.
The base rate is set at monthly meetings and is dependant on the market's conditions at that time. The base rate is then the standard interest rate used for most financial products. Lenders will add their own interest rate on the top of this base rate, this is their charge for lending to you and it ensures they make some profit out of the mortgage. A variable mortgage will rise and fall in line with the Bank of England base rate, hence the name variable mortgage.
The mortgage lenders standard interest rate will usually remain the same, but this is dependant on the individual lenders and current market conditions. Your best home buying tactic is not to borrow to your limit but stay at a level where you could cope with any fluctuations in interest rates should they happen.
If you have a variable rate mortgage it could well be worth your while re mortgaging to save on your monthly repayments.

VAT

Value-added tax or VAT, is a tax levied on the difference between a commodity's price before taxes and its cost of production, it is a sales tax levied on the sale of goods and services. The rate of VAT that you pay in the UK varies depending on which goods or services you are buying.

17.5%. This standard rate is used on most goods and services i.e. cars, computer games, adult clothes and electrical equipment.
5%. This reduced rate is charged on fuel and power used in the home or by registered charities.
0%. This is known as zero-rated. VAT is not charged on most food, books, newspapers and young children’s clothes.

In the UK a company or individual must register for VAT if their taxable earnings are more than £64,000 in a twelve-month period. Registration means that at every stage of production and distribution VAT must be paid on anything that is sold.

There are two types of VAT: Output VAT and Input VAT

OUTPUT VAT is charged by a business and is paid by its customers when they buy from the company.
INPUT VAT is paid by a business to another businesses on the supplies that it receives.

Vets Bills Insurance

The aim of taking out any insurance policy is to compensate you following a loss. It prevents you from having to spend lots of money should the unforseeable happen. Vets bills insurance is an insurance that can help you to find the costs that may arise should you have to visit the vets. If you have taken out vet bill insurance then your pet stands a better chance of getting the treatment they require, as you would be covered for the costs.
Pet Insurance cover will vary from provider to provider, the differences between their policies should be examined, any exclusions understood and the terms and conditions should be clearly stated before you decide which insurance policy to take out.
Pet insurance as with any other form of insurance comes with a claim excess, this is the amount of money you have to pay towards the cost of any initial treatment your pet requires. You may even initially have to pay the vets bill and claimthe money back at a later date from your insurer.
Most insurers offer reductions for online applications.

Vehicle Insurance

There is simply no escape from vehicle insurance. Whatever the vehicle you drive, in the UK it is a legal requirement for all drivers to be covered by vehicle insurance before you can take to the roads. Its primary use is to provide protection against losses incurred as a result of traffic accidents. You can insure your car against fire and theft.

Vehicle Insurance Policies
Before you go searching for insurers to compare quotes, it is worth knowing, that in regard to vehicle insurance the first party is the insurance policy holder, the second party is the insurer and a third party is anyone else.

There is three main types of vehicle insurance available in the UK:

Third Party Only.
Third Party, Fire and Theft.
Fully Comprehensive.

Third Party Only
This is the bare minimum allowed by law and is very limited in its scope. Third Party covers the policyholder only for the cost of damage to a third party’s property or injury to a third party. It does not cover the policy holder themselves or damage incurred to their own vehicle.

Third Party - Fire and Theft
This is basically the same as third party but has the addition of cover against your car being stolen or catching fire.

Fully Comprehensive
This is the most protective option, it provides cover against any third party claim, be it themselves or their car. It also offers insurance cover for the policy holder themselves, their own vehicle and will cover any passenger present in the vehicle at the time of an accident. Third party overs cover reguardless of fault.
The cost of vehicle insurance will vary greatly and is dependant on such factors as: type of cover required, type of vehicle to be insured, contents you may wish to include in the policy, the location of the vehicle overnight and what if any optional extras you wish to include.
You can help lower your insurance quote if your vehicle is kept in a garage overnight or in a secure compound while you work. Fitting an alarm or security devices such as an immobilizer can dramatically effect quotes also. Insurance policys become more expensive if you wish to add things like the guarantee of a courtesy vehicle and quick repair assistance.

Compare Vehicle Insurance
Before you look to compare vehicle insurance quotes work out what type of policy you want, what extra cover you will require, along with details of the vehicle and any security devices it as fitted and any locations you will be regularly travelling to and from.