Cut through the jargon. Not sure what a term means? Our Jargon Buster simplifies complex language, so you can stay confident and in control of your finances.
Affordability Check
A review of your income and expenses to make sure you can afford a loan, mortgage, or credit agreement.
Agent
Someone who is allowed to act on behalf of someone else. For example, an estate agent who acts on behalf of the seller of a house to find a buyer.
Agreement
An arrangement between two or more parties to do, or not do, something (i.e. a course of action). For example, when a formerly married couple agree the terms of their divorce.
Alternative Dispute Resolution (ADR)
Refers to the other ways people can resolve a dispute without going to court. The most common ADRs are arbitration and mediation.
Ancillary Relief
An application for financial support, following the presentation of a petition for divorce, nullity or judicial separation.
Arbitration
A non-trial ADR procedure where a third party (the arbitrator) looks at both sides of the dispute and decides how it should be resolved.
Assets
Something (usually of value) that is owned.
Associates
A person usually employed by a law firm, often a lawyer who may oversee handling your case.
Assured Shorthold Tenancy (AST)
The most common tenancy if you rent from a private landlord or letting agent. It's normally six months long and you have no right to stay past the end date if your landlord has given you valid notice to leave.
Assured Tenancy
Used mostly by public-sector landlords. It tends to be a lifelong tenancy which only ends if you leave or are evicted.
Authorised Push Payment (APP) Scams
When someone is tricked into sending money to a fraudster pretending to be a trusted person or organisation.
Balloon Payment
A large, final payment due at the end of certain types of loans or finance agreements. It’s typically much bigger than the regular monthly payments and is used to pay off the remaining balance in one go
Bankrupt
A person or organisation that is declared by law as unable to repay their debts.
Barrister
A lawyer who is typically called upon by the solicitor to represent a case in court, i.e. to plead the case on behalf of the client and the client's solicitor.
Beneficiary
Someone who is entitled to a benefit or a gift, usually under a will or trust.
Bequest
A gift of money or personal property made in someone's will.
Broker
A person or firm that arranges contracts and acts as the middleman between a buyer and a seller for a commission.
Budgeting
The process of creating a plan to spend and save money based on your income and expenses.
Car Finance
A loan or agreement that helps you pay for a car, spreading the cost over time.
Claimant
A person making a claim
Compromise Agreement
A legally binding agreement between an employer and an employee. This document confirms that the employee will give up their legal claim against their employer and in return the employer will pay financial compensation.
Conditional Fee Arrangement (CFA)
If a claim on a CFA is unsuccessful, the solicitor usually receives no payment for their work. If the claim is successful, the solicitor claims a higher-than-normal fee to account for their risk in taking the case on.
Consumer Credit Breach
When a lender breaks the rules around loans, credit cards, or finance agreements, which can include unfair charges or misselling.
Contentious Probate
The legal process that occurs when there are disagreements about how a deceased person’s estate is handled.
Contract
A legally binding agreement signed by two or more parties setting out the terms of an arrangement. For example, a Partnership Agreement between business partners with the aim of making a profit.
Conveyancer
A legal expert who handles all the legal work when buying or selling a property, like transferring ownership and checking contracts.
Conveyancing
The legal transfer of property from one person to another.
Counsel
Another term for a barrister.
Credit Repair
The process a person takes to improve their ability to borrow money. For example, by disputing information on your credit report.
Credit Report
A detailed record of your financial history, including loans, credit cards, and payment behaviour. Lenders use this to decide if you’re a reliable borrower.
Creditor
A person or organisation to whom money is owed.
Damages
An award, usually money, paid to a person or organisation for loss or injury.
Damages Based Agreement (DBA)
An agreement whereby a solicitor's legal fees are based on the damages that their client recovers (i.e. the Court judgment).
Data Subject Access Request (DSAR)
A request made by an individual to an organisation for access to any personal data the organisation has on them.
Debt
Money that you owe to a person, organisation, or lender.
Debt Consolidation
A way to combine multiple debts into a single loan or payment plan, often with a lower interest rate. This can make managing repayments simpler and more affordable.
Deposit
An upfront payment made to secure something, like a house, a rental property, or a car finance deal.
Disbursement
Fees that are paid to organisations as required as part of legal services. For example, search fees in a property transaction.
Discrimination
When someone is treated unfairly because of their disability, race, religion or belief, sex or sexuality, and age. These are known as Ôprotected characteristics' under the Equality Act 2010.
Drawdown Lifetime Mortgage
A flexible way to release smaller amounts of cash from your home over time, as and when you need it.
Emergency Fund
Savings set aside to cover unexpected expenses, like car repairs or medical bills.
Emissions
The pollution released by cars, often measured in CO2, which affects road tax and running costs.
Equity Release
There are two main equity release plans: lifetime mortgages and home reversion plans. These allow you to access the cash tied up in your home if you're over 55.
Estate
The sum of a person's assets.
Executor
Someone appointed in a will to carry out the directions of the will.
Fee Earners
Employees of firms who deliver legal services.
Financial Conduct Authority (FCA)
A regulatory body which oversees the financial services industry in the U.K.
Financial Health Check
A review of your personal finances.
First-Time Buyer
Someone buying their very first home; they are often eligible for special deals or schemes.
Fixed Rate
An interest rate that stays the same for a set period, so your payments won’t change.
Fraud
Intentional deception or concealment to secure unfair or unlawful gain to the harm of the victim.
General Data Protection Regulation (GDPR)
A privacy and security law (passed in 2018) that applies to most U.K. companies and organisations. It ensures that personal information is used fairly, lawfully, and transparently.
Grounds (Legal)
The basis or motive of an action.
Group Litigation Order (GLO)
A court order which allows individual claims linked by common or related issues to be managed collectively.
Guarantor
A person who agrees to pay back a loan or rent if the borrower or tenant fails to do so.
Hearing (Legal)
A legal proceeding where the facts of a particular issue are looked at, and evidence is presented to help decide what the outcome should be.
Hire Purchase (HP)
A car finance option where you pay monthly and own the car after the final payment.
Housing Association
A not-for-profit organisation that provides affordable housing to people in need. They own, manage, and rent properties, often offering schemes like shared ownership to help people get on the property ladder.
Housing Disrepair Claims
If you've consistently asked your landlord to repair your home and they've refused to do so, you may be eligible for housing disrepair compensation.
Income
The money you earn or receive, like your salary, benefits, or pension.
Income and Expenditure Form
A breakdown of all the money you have coming in (income) and going out (expenses), often used to check affordability.
Indemnity
Compensation for loss or damages served by one party to the other within a contract or otherwise.
Independent Person
Someone free from outside control or influence who can act in the way they choose.
Inheritance
The practice of receiving parts of someone's estate upon their death.
Inheritance Tax
A tax paid on the estate of someone who has died, if it’s over a certain value (currently £325,000).
Insolvent
An individual or company that can no longer meet their financial obligations, i.e. pay their debts when they're due.
Instruct
When a client employs a solicitor or barrister to act on their behalf.
Insurance
Protection you buy to cover costs if something goes wrong, like damage, illness, or theft.
Intellectual Property (IP)
Ideas you create and legally own because you own the relevant copyright, trademark, or patent. This could be anything from inventions to names and images.
Interest
The charge for borrowing money or the reward for saving it, usually shown as a percentage.
Irresponsible Lending
When a lender gives a loan or credit without checking if the borrower can afford to repay it, leading to financial harm.
Joint Account
A bank account shared by two or more people, typically used by couples or business partners.
Lasting Power of Attorney (LPA)
This lets you appoint someone to make (financial or welfare) decisions on your behalf, particularly if you suffer an accident or an illness and cannot make your own decisions. It goes beyond ordinary power of attorney.
Lawyer
A generic term used to describe anyone who is a Licensed Legal Practitioner qualified to give legal advice. This covers solicitors, barristers, and advocates in the U.K.
Legal Aid
Government funding that can help you pay for some or all of your legal costs, if you're eligible to receive it.
Letter of Authority (LOA)
A legal document that allows someone (like a third-party or agent) to act on your behalf within agreed limits. For example, dealing with service providers on your behalf.
Liable
When someone is legally responsible for something.
Life Insurance
A policy that pays money to your loved ones when you pass away.
Litigant
A person involved in a lawsuit.
Litigation
The process of taking a dispute to a court of law.
Lump Sum Lifetime Mortgage
A way to unlock a big chunk of cash tied up in your home, paid out all at once, without selling it.
Misconduct
A breach of principles, rules, or regulations, usually by a regulated professional; for example, a solicitor.
Misselling
The deliberate, reckless, or negligent sale of products or services where the suitability of the product or service is misrepresented to the buyer.
Mortgage
A type of secured loan used to purchase or maintain a home, land, or other types of real estate.
Next-of-Kin Status
Typically refers to your nearest blood relative. However, if you make a written agreement beforehand, your partner can be considered next-of-kin if you fall ill or die.
No Win No Fee (aka Conditional Fee Arrangement)
If your claim is unsuccessful, you won't have to pay any solicitors fees. You only pay if your claim is successful.
Obligation
A legal requirement by which one or more parties are instructed to act or to refrain from acting.
Ombudsman
An official who has been appointed to look into complaints against businesses and organisations. There are different kinds for different sectors, e.g. Legal, Financial and Property.
Omission
A failure to act where there was a legal requirement for that act to be carried out.
Ordinary Power of Attorney
This allows someone to make financial decisions on your behalf. It's only valid while you still have the mental capacity to make your own decisions.
Outcome
This is usually the final decision following an application or an investigation.
Over 50s Insurance
A type of life insurance available to those typically between the ages of 50 and 80, regardless of medical history.
Packaged Bank Account (PBA)
A bank account that charges a monthly fee but comes with extra perks, like insurance or breakdown cover.
Partnership
Two or more people working together in business.
Payee
The person or organisation that receives a payment.
Payment Protection Insurance (PPI)
A type of insurance sold alongside products that require you to make repayments on, like a loan, credit card or mortgage. Largely sold between 1990 and 2010.
Personal Contract Purchase (PCP)
A type of car finance where you make monthly payments and have the option to either buy the car at the end or return it.
Plevin
Refers to the 2014 Supreme Court ruling on undisclosed commission and unfair relationships between lenders and borrowers.
Probate
A legal document which gives you the authority to deal with someone else's estate when they die, according to the instructions in the will.
Remortgaging
When you either move your mortgage to a new deal with another lender or move to a different deal with your current lender.
Remuneration
The reward or compensation an individual receives in exchange for the work or services they provide.
Rights of Audience
A right of a lawyer to appear and conduct proceedings in court on behalf of their client.
Risk
The possibility of suffering harm or loss.
Scam
A scheme that is fraudulent or deceptive where the goal is to cheat people out of their property, money, or even to harm them.
Secured Loans
A loan that is backed by collateral put up by the borrower. For example, a mortgage in which the property backs up the loan.
Shared Ownership
A home-buying scheme where you purchase a percentage of a property (usually between 25% and 75%) and pay rent on the remaining share owned by a housing association or landlord.
Solicitor
A lawyer who provides specialist legal advice and is responsible for representing and defending a client's legal interest.
Solicitors Regulation Authority (SRA)
The regulatory body for solicitors in England and Wales.
Survey
A detailed inspection of a property to check its condition before buying or selling it.
Surveyor
A professional who carries out property surveys to spot any issues, like structural problems or damp.
Tenancy
A written or verbal contract between a tenant and their landlord.
Term Life Insurance
A type of life insurance that lasts for a set number of years, often 10 to 30 years.
Third Party
A person or group independent of the two sides primarily involved in a situation, particularly a dispute.
Tipping Point
Refers to the FCA's commission tipping point as a result of the Plevin case, which states that commission over 50% is unfair and should be paid back to customers.
Trust
A legal relationship between persons in which one has the power to manage assets and the other has the privilege of receiving the benefits from those assets.
Undisclosed Commission
Where a lender fails to disclose (to the borrower) commission payments that they made to the broker in return for them providing them with business.
Unsecured Loans
A loan that is not backed by collateral, resulting in higher interest rates.
Utilities
The essential services you need to keep your home running, like gas, electricity, and water.
Variable Rate
An interest rate that can go up or down, meaning your payments could change.
Verdict
An impartial decision reached by a jury at the end of a trial, after all the facts and evidence are presented.
Whole Life Insurance
A life insurance policy that covers you for your entire life, not just a set term.
Wills
A legal document that expresses a person's wishes about the way their estate should be handled after they die.
