OCCUPATIONAL PENSION SCHEME
A particular type of pension that your employer offers. Not all pension schemes arranged by employers are occupational ones; only those that are run by a group of people called the scheme 'trustees'. There are two types of occupational pension scheme; a defined benefit (or final salary) scheme and a defined contribution (or money purchase) scheme.
OEIC (OPEN-ENDED INVESTMENT COMPANY)
A type of pooled investment fund. It's similar to a unit trust except that an OIEC has a simpler and more transparent charging structure. Reassuringly, the word is pronounced 'oik'!
OFFER PRICE
The price at which you buy a share or a unit in a unit trust. The offer price can be up to 5% higher than the bid price (which is the price at which shares or units are sold).
OFFSET MORTGAGE
A type of mortgage where you keep your savings and mortgage in the same account. Your savings are used to offset the mortgage debt (so you only pay interest on your mortgage debt minus your savings) but you don't earn any interest on your savings. It's useful for people who have savings worth around 10% or more of the value of their mortgage.
OPEN MARKET OPTION
When you retire, if you have a pension other than a final salary or defined benefit scheme, you have to convert your pension fund into a monthly income. You don't have to buy your income from the same company you built up your pension fund with, instead you are able to shop around for the best deal. It's really important to do this because once you've made your decision you're normally locked into it for the rest of your life.
ORDER FOR SALE
If you owe money to a creditor such as a credit card company or personal loan provider, they may ultimately have the right to go to court and force you to sell your home, something many people don't realise. There are a number of stages and procedures before a company can get an order for sale, but it does mean that ultimately you could lose your home.
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