REBUILDING COST
The cost of rebuilding your home if it was damaged beyond repair. This is normally less than the market value of the property (including the cost of the land). If you're considering buying a property, ask your surveyor for a rebuilding valuation, if you already own your home you can find a 'rebuilding calculator' on the internet.
REDEMPTION DATE
The date, which is set in advance, when a bond will be repaid by the company or government that issued it.
REDEMPTION PENALTY
More commonly called an 'early repayment charge', it's a fee you have to pay a mortgage lender if you pay off your mortgage early or switch to a different lender. In general terms, the more competitive the mortgage deal, the more likely it is to have an early repayment charge. Fixed rate mortgages are most likely to have an early repayment charge.
REDUCTION IN YIELD
A measure of the impact of costs and charges on the return you might get from an investment product. Investment firms might state something like 'this would have the effect of reducing the investment growth from 7% to 5.5% a year'. It's a useful way of comparing investment products that have different costs and charges.
REMORTGAGING
The process of switching your mortgage from one lender to another. You might do this to save money by switching to a better rate or so that you can borrow more money (for example, to improve your home).
RENEWABLE TERM INSURANCE
Term insurance normally runs for a specific period, but renewable term insurance lets you continue the policy at the end of the term. Your premiums are likely to rise each time you renew because you're older and therefore a higher risk.
RESIDENTIAL CARE HOME
A type of care home where those who live there are given help with washing and dressing etc., but not nursing care.
REVERSIONARY BONUS
A bonus payment that's added onto a with-profits policy every year. Its level is not guaranteed, but once it's been added it cannot be taken away. It is also known as a 'regular bonus'.
RIGHTS ISSUE
A way for a company that sells shares to investors to raise money from those investors by issuing extra shares. Existing shareholders are normally given the opportunity to buy these shares at a preferential price.
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