Jargon Buster
Underpayment
A mortgage repayment smaller than the regular agreed sum.
Some flexible mortgages have this feature, which can be
useful for people with irregular income.
Unemployment insurance
Another form of income protection, but one that does not
cover any form of sickness, injury or disability. The purpose
of this type of policy is to replace income lost through
a short to medium term period of redundancy. It provides
you with a monthly tax-free income to cover a portion of
your lost earnings. It is often sold in conjunction with
the accident, sickness and disability element of income
protection policies, in which case it is known as Accident,
Sickness and Unemployment (ASU).
Unitised with-profit endowment
This is a hybrid unit-linked endowment, designed to
smooth out price fluctuations that occur with unit-linked
policies. The value of units is declared each year and that
value is then guaranteed. The guaranteed value that is declared
is at a discount to the actual value of the units. The guaranteed
value will not reach the real value until the term of the
endowment is up, so the chance of being able to pay of the
loan early is minimised.
Unit-linked endowment
Your monthly premiums are used to buy units in a fund
or funds run by professional managers. Like unit trusts,
the price of these units can go up and down, so the value
of the endowment can constantly change.
Unmortgagable
A property for which you are unable to find a lender
willing to give to a mortgage due to the results or a survey,
the valuation to price or details of the lease or title
deeds.
Unpaid ground rent charge
If you are a leaseholder, and the freeholder notifies
the lender that you have not paid your ground rent or service
charge, the lender may penalise you. Costs £30 - £50.
Unpaid service charge
If you are a leaseholder, and the freeholder notifies the
lender that you have not paid your ground rent or service
charge, the lender may penalise you. Costs £30 - £50.
Unrecorded deed
An unrecorded deed transfers ownership from one party to
another without being officially recorded.
Unregistered land
Land/property not yet held on the database at HM Land Registry.
Unsecured loan
Any loan that is not backed by collateral.
