Adverse credit
A term used to explain somebody with bad credit history. This could include delayed payments, CCJs, mortgage arrears or bankruptcy.
APR
The cost of credit that borrowers have to pay annually. The percentage is an equation considering the overall amount financed, the finance charges, and the term of the loan.
Bank of England
The interest rate to reach the treasury’s inflation target will be set by the Bank of England. Base rate is fixed by Bank of England.
Bankruptcy
Bankruptcy is a legal procedure in which a person who is unable to meet financial obligations is declared bankrupt by a decree of the court; under the Federal Bankruptcy Law this person’s property becomes liable to administration to satisfy creditors.
Arrears
Money which is not paid on time, as for example, if a borrower has not made the last two mortgage payments, he or she is said to be in arrears.
CCJs
County Court Judgements are court order against a debtor to pay money owed to different lenders. This may happen when a borrower is not able to pay his debts. This is also considered a bad credit records.
Credit rating
Credit rating is a method used by financial institutions to determine the credibility of a borrower. Credit reference agencies gather the credit report of an individual on the basis of CCJs, bankruptcy, and so on.
Default
The failure to repay or delay of payment of a amount due by a specific date or time, put borrower in to category of defaulter. Defaults are registered with credit reference agencies.
Fixed rate
Rates of interest charged for a loan or that is paid to an interest-bearing deposit account that does not vary over the repayment term of the loan.
Discharge
It releases borrower from the obligation of repaying loan, its liberation from financial burden. |
