Daily Interest
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Where interest is applied on a daily basis instead of the usual monthly time frame.
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Data Protection Act (1988)
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Regulations introduced to protect the transfer of personal data within and between different organisations. Remember that every time you apply for a store loyalty card, credit facility or magazine subscription, you are handing over substantial amounts of personal data for organisations to trade in. Whilst this data may enable them to make special offers which "may be of use to you", it also means more opportunity to sell you products or services you would not otherwise have bought. If you are not the kind of person to say no easily, make sure you always tick the "no marketing material" box.
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Debt
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Funds owed to lender.
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Debt Consolidation
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Replacing a number of existing loans with a single loan from a new lender which may reduce your monthly payments by spreading out a larger loan over a longer period of time, and reducing the interest rate being paid.
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Debt-To-Income Ratio
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A method used by lenders to establish if a person is qualified to receive a mortgage or loan.
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Deed
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The document that proves you own the property. It will also show any land boundaries.
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Deed Of Covenant
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The document expressing the terms of a covenant (a binding agreement), which may typically be imposed by a lender to restrict certain activities, such as use of a house for commercial purposes, or sub-letting.
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Deed Of Proxy
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A document enabling one person to manage the financial and legal affairs of another individual.
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Deeds Release Fee
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This fee is charged by the lender for releasing the deeds of the mortgaged property and returning them to the owner or his solicitor, usually when the mortgage has been repaid.
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Default
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When a payment or a series of payments are missed.
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Default Notice
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A letter served by a creditor to the borrower to say that a credit agreement has been breached, and that action must be taken by the individual to prevent the creditor seeking repayment via a County Court Judgement.
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Deferral Period
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A time period on a loan during which no repayments need to be made. This is particularly popular with student and graduate loans, to enable young people to finish their studies, or to travel, before having to start making repayments. "Buy now, nothing to pay until next year" type offers in furniture and other stores also operate with deferral periods.
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Deferred Interest
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A type of loan where some or all of the interest owed by the borrower is added to the amount outstanding which therefore causes the borrower to owe much more than originally borrowed.
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Delinquency
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Not making payments at the correct time.
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Delinquent Loan
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A loan whereby the borrower is behind on payments. If payments are not brought up to date within a set time frame the lender may foreclose proceedings.
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Dependant
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An individual who depends financially on another person.
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Despatch Fee
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See deeds release fee.
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Direct Debit
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A method of making automatic payments electronically from a current account. Direct debits may be at fixed intervals - e.g. for a monthly credit card or quarterly fuel bill, and they may be fixed (e.g. a monthly membership fee), or variable, such as for a mobile phone bill. Direct Debits can also be for irregular payments, such as buying shares.
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Direct Lenders
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Lenders who operate on lower overheads, through use of call centres, mailing houses, or internet based operations, instead of an expensive branch-based network. Although direct lenders.
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Disbursements
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Search fees, land registration, stamp duties are all examples of disbursement.
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Disc
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An abbreviation for discount.
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Discharged Bankrupt
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Person whose period of bankruptcy has ended.
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Discharged CCJ
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A county court judgement that has been paid.
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Disclaimer
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Any written notice designed to discharge liability of a company, for providing inaccurate information in a leaflet.
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Discount Period
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Time period in which reduced payments are offered.
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Discount Purchase Price
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The price of a property which has been reduced below the open-market value, such as in the case of a right-to-buy purchase or a builder's discount. Under right to buy legislation, properties are not offered at the open market value, but at a discount, and if the property is resold within a three-year period, some or all of the discount will have to be repaid.
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Discount Rate
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The mortgage interest rate is lower than the current normal standard variable rate, but only for a certain period of time. Usually shown as a fixed percentage reduction to the lender's normal variable rate e.g. 2.00% discount for 2 years.
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DSS Payments
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Income received from the department of social security towards the payment of mortgage or rent. They are used by a lender only in exceptional circumstances to confirm the ability to service a loan. Benefits are only paid after the first 39 weeks of an income support claim.
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