The amount of money available to be transferred from one pension arrangement to another.
A mortgage where the variable interest rate is linked to a certain index, such as the Bank of England Base Rate. If the index to which the mortgage is linked changes, so does the interest rate of the mortgage.
The combination of capital growth and reinvested income produced by an investment at the end of any given period.
A charge levied by a lender if you decide to take buildings insurance from someone other than the lender.
When investing in a fund, this helps to illustrate the total costs involved. In addition to the annual management charge (AMC), the TER also takes into account additional costs incurred by the fund manager such as legal fees, auditor costs and trustee fees.
A life insurance policy with a fixed term. The sum assured is only paid out if the life assured dies within the specified length of the policy.
The duration of an insurance policy, investment or loan.
A term used with reference to pensions. The amount of money you can take from your pension plan free of tax when you retire. Most pension plans will allow you to take up to 25% as a 'tax-free lump sum' (30% for most Isle of Man contracts). Also referred to as a Pension Commencement Lump Sum.
Tax-exempt special savings accounts replaced by ISAs in 1999. You can no longer invest in a new TESSA but you can transfer your existing TESSA into an ISA.