Redemption penalties
Charges paid to the lender in compensation for lost interest
if you redeem your loan ahead of schedule. Penalties can
be a fixed sum of money, though are often proportion of
the loan.
Redemption statement
The outstanding amount to be repaid on an existing loan.
Redundancy insurance
A form of income protection that does not cover any form
of sickness, injury or disability. The purpose of this
type of policy is to replace income lost through a short
to medium term period of redundancy. It provides you with
a monthly tax-free income to cover a portion of your lost
earnings. It is often sold in conjunction with the accident,
sickness and disability element of income protection policies,
in which case it is known as Accident, Sickness and Unemployment
(ASU).
Remaining balance
The amount of unpaid principal on a home loan.
Remaining term
The original loan term minus the number of payments made.
Repayment period
The period over which the borrower must repay the lender.
Repayment plan
When a borrower falls behind in loan payments, many lenders
will negotiate a repayment plan rather than go to court.
Repayment term
The period of time over which you will repay your loan
to the lender.
Repo rate
The Bank of England base rate.
Restructured loan
A loan in which new terms are negotiated.
Retail Price Index
An index of the average level of prices in the UK. Insurance
companies often link contents insurance policies to it.
Retrieval cost
The cost incurred to recover amounts or items.
RPI
An index of the average level of prices in the UK. Insurance
companies often link contents insurance policies to it.
