Debt Consolidation Loans Glossary

H.


Hire Purchase.

A transaction in which the purchaser of goods pays an initial deposit and takes possession. Subsequent instalments are made over a specified time after which ownership passes to the purchaser. Cars or other auto loans are often on HP.

Plans to help elderly owners of a property to utilise its capital value to their advantage (by providing an income) and still remain in residence. A financial institution provides a loan to a borrower which is secured against their property. The money is used to purchase an annuity which provides the borrower with enought income to repay the interest on the loan and to spend as they wish.

A person who owns the property they live in, as opposed to a tenant who rents and has no ownership rights.

A credit line offered by banks and mortgage lenders which grants the home owner the opportunity of borrowing against the built up equity in the property. Mortgages like this are often referred to as flexible or open plan or offset.

A plan to help elderly owners of a property to utilise its capital value to their advantage (by providing an income) and still remain in residence. A financial institution purchases the property at a price well below market value. The original owners are entitled to live in the property until their death. The money from the purchase is used by the original owners to buy an annuity that provides them with a regular income. When the original owner dies, the institution recieves the proceeds of the property including any increase in value.

Insurance covering the structure or contents of a house. This type of insurance can now include the option of cover for additional items such as legal expenses. Also some companies now offer no claims bonuses, similar to motor insurance.

Non profit making bodies who’s intention is to provide low cost residence for rent or purchase or sometimes a combination of the two.