Results for letter: E
EARLY REPAYMENT CHARGE
If you borrow money and pay it back before it’s due, the lender makes less money on the deal than expected. So to compensate, the lender can ask for an additional payment to cover administration costs should you repay [‘redeem’] the loan early. The redemption period varies according to the terms of your mortgage or other loan.
EARNINGS PER SHARE
The total amount of a company’s earnings divided by the number of ordinary shares it has issued. Used as an indicator of the return on equity investments
An endowment life assurance policy is often linked to a mortgage. Throughout the term of the mortgage, payments made by the borrower cover only the interest due on the loan. The capital sum borrowed is paid back in one lump sum at the end of the loan period, using the proceeds from an endowment policy taken out at the start of the mortgage.
A life insurance and savings policy which pays a specified amount of money at the end of an agreed term, or on the death of the life assured. Often linked to a mortgage.
The ordinary shares of a company.
The difference between the value of your property and the amount you actually borrowed. If your house is valued at £80,000 and you have a £60,000 mortgage, your equity is £20,000.
EXPRESSION OF WISH
A means by which the member can indicate a preference as to who should receive any lump sum death benefit. The choice is not binding on trustees or administrators and thus Inheritance Tax is normally avoided. Also referred to as a nomination form.
EPP (EXECUTIVE PENSION PLAN)
An Executive Pension Plan (EPP) is an occupational money purchase arrangement (investment linked pension scheme) normally used for Directors and senior employees. It is alternatively known as a One Man Pension Arrangement (OMPA).
ETFs (EXCHANGE-TRADED FUNDS)
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.
EISs (ENTERPRISE INVESTMENT SCHEME)
A scheme which provides income and capital gains tax relief for people prepared to risk investing in a single unquoted or AIM-listed trading company.