London Life - Jargon Buster

Use our Jargon Buster to cut through the complicated language financial services companies sometimes use, and find out what it really means. The list is in alphabetical order so you can scroll down to look up words and their meanings:

Market Value Reduction (MVR)
Applies only to unitised with-profit policies, and is sometimes known as a Market Value Adjustor (MVA). It applies at times where the investment value of a policy is less than the fund value.
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MIRAS (Mortgage Interest Relief at Source)
Tax relief on your mortgage interest repayments. MIRAS ended in April 2000.
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Money Purchase Scheme
A type of pension scheme run by some employers. The size of your pension when you retire depends on the amount you've paid in, how much the investments have grown and the annuity rates available when you retire. (See also Defined Contribution Pension Schemes).
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Mortgage
A loan commonly used to buy a house. The house is used as security until you've paid off the loan (usually after a fixed length of time). There are three main types of mortgage: repayment, interest only and flexible.
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Mortgage deed
The legal document you sign giving the lender the legal right to use your property as security for the mortgage.
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Mortgage Indemnity Premium (MIP)
A premium paid for insurance to cover the lender in case your property is repossessed and sold and the lender cannot get all their money back from the sale proceeds. It provides protection for the lender not the borrower, but the borrower typically is required to pay the premium.
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