The law requires that banks and other lenders quote the annual percentage rate for their customers. The APR usually appears in brackets and it constitutes the rate used to calculate the customer’s total interest over the entire loan term.

The applied or nominal interest rate is the amount used by the lender to calculate the borrower’s actual balance. Typically, it may be somewhat less than the annual percentage rate, as it does not include other fees besides the interest rate.

The base rate is the lowest rate at which a specific lender will offer a loan to customers. The base rate, also called the repo rate, acts as the starting point by which lenders set other interest rates. High street lenders track the daily money market actions of the Bank of England to set their own base rates.

A type of financing used typically by companies prior to an initial public offering (IPO). Bridge financing serves to cover cash flow requirements over the short term until the IPO allows the company to raise additional capital.

A short-term loan usually sought as an alternative when consumers need money quickly to complete a transaction. For example, a bidder at an auction may close a deal using a bridging loan. The loans are also popular when consumers want to buy a real estate property while they are selling an existing property or waiting on a deal for that property to [..]

The term “capital” refers to a certain value of money. The value of capital is separate from any gains made using the money for an investment or from any interest or other charges that you must pay on the money. The term is synonymous with “balance” in the mortgage industry, as it describes the amount of money, excluding interest and other charges, [..]

The cooling off period requires that the lender provide consumers with 10 days in which they can reconsider their loan or credit card agreement. If the customer decides to decline the agreement, they must provide the refusal to the lender in writing. If the customer waives the cooling off period right, the agreement is immediately valid. The right [..]

With credit insurance, consumers have protection should they become ill or otherwise have difficulty repaying their loans. The insurance covers monthly loan obligations for specific situations and for a specific amount or time period set out in the policy.

A credit reference agency provides financial histories for consumers in the United Kingdom. The agencies have files on most adults that they glean from various sources. The file data typically includes details on any bankruptcy or court judgment against the consumer. The records will also list loan defaults and late payments.