Jargon Buster
Underpayment
A mortgage repayment smaller than the regular agreed sum.
Some flexible loans have this feature, which can be useful
for people with irregular income. This is much rarer with
a loan than with a mortgage.
Unemployment insurance
Another form of income protection, but one 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).
Unmortgagable
A property for which you are unable to find a lender
willing to give to a mortgage due to the results or a
survey, the valuation to price or details of the lease
or title deeds.
Unsecured loan
Any loan that is not backed by collateral.
