UK finance jargon buster - dictionary of terms - (L to Q)

A - C | D - F | G - K | L - Q | R - Z

Land registration - record listing a plot of land's registered owner and any legal charged attached to it.

Level term assurance - a type of life assurance that pays out a cash lump sum if the policy holder dies during the term of cover.

Life insurance - insurance where a policyholder's dependents receive a cash lump sum if he or she dies.

Loyalty bonus - special schemes designed for existing mortgage customers offering benefits such as reduced interest rates, low fees, etc.

Managed fund - a type of investment where a number of investors pool their money into one fund which is then invested by an experienced fund manager.

Mortgage - a loan to purchase a home, where the property is used to guarantee repayment of the loan.

Mortgage rate - the standard interest rate given by mortgage lenders, which tends to reflect rises or cuts to the Bank of England base rate.

Mortgagee - the company that lends money on a mortgage.

Mortgagor - the person who is taking out the mortgage.

National Insurance - a tax levied on wages and salaries in the UK which is used to finance state benefits.

Negative equity - where the value of your property is worth less than the money owed on the mortgage.

No claims bonus - where a discount is awarded to policy holders who have not claimed on insurance, for example, when drivers do not claim on their car insurance.

Occupational pension scheme - a pension scheme set up for employees by an employer.

Offshore banking/savings - a bank account that is held overseas. For UK residents, offshore accounts are often held in places like the Isle of Man and the Channel Islands.

PAYE (Pay-As-You-Earn) - a system whereby income tax is automatically deducted from wages and salaries by employers on behalf of the Inland Revenue before employees are paid.

PEP (Personal Equity Plan) - a tax-free method of acquiring unit trusts or shares.

Personal loan - a type of loan taken out by individuals where interest rates and repayment costs are fixed.

Private medical insurance - a policy that covers the policyholder for any bills arising from medical or hospital treatment.

Public company - a company that is listed on the Stock Exchange. The company's shares are available for the public to invest in.

Quoted company - see Public Company.

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