Arrow Financial Services

Jargon Buster

Jargon Buster



Most searched terms


BASE RATE

The interest rate set by the Bank of England which other banks use to set their rates. When the base rate changes, lenders usually follow by adjusting their Standard Variable Rate.

BUY TO LET MORTGAGE

A mortgage for people who buy property and intend to let it out. The Financial Conduct Authority does not regulate some forms of buy to lets.

IFA (INDEPENDENT FINANCIAL ADVISER)

A finance professional who must by law give impartial ‘best advice’ on financial companies, markets and products. IFA’s are completely independent and can recommend the products of any company.

IHT (INHERITANCE TAX)

Tax, payable after you die, on the value of your assets in excess of a certain threshold value. Certain gifts between husband and wife are exempt. IHT is also chargeable in certain circumstances while you are still alive.

ISA's (INDIVIDUAL SAVINGS ACCOUNTS)

Tax efficient savings plans which can hold cash, shares or life assurance, or a combination of all three. ISA’s were introduced in 1999 to replace TESSA's and PEP's.

AUTO ENROLMENT

A new law means that every employer must automatically enrol workers into a workplace pension scheme if they are aged between 22 and State Pension age, earn more than £9,440 a year, and work in the UK. You may not see any changes if you’re already in a workplace pension scheme. Your workplace pension scheme will usually carry on as normal. But if your employer doesn’t make a contribution to your pension now, they will have to by law when they ‘automatically enrol’ every worker.

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