Part and Part Mortgage
A type of mortgage that has an element of Interest Only Mortgage and Repayment and included into it.

Part-possession
A term referring to situation where the tenants are, by law, allowed to stay in the property that has just been sold.

Payment break
A term, also known as Payment Holiday, that refers to a possibility to have a break from making regular mortgage payments as per agreed terms.

Payment Default
Circumstances referring to the situation when the borrower fails to make a payment on his outstanding balance.

Payment Holiday
A term, often referred to as Payment Break, making it possible for the borrower to have a break from payments for an agreed time period.

Payment Method
An agreed way to repay the mortgage capital through endowment policy, other investment products or ISA.

Payment Protection Insurance
A term also known as Accident, Sickness and Unemployment Insurance or ASU.

Payment Schedule
A type of timetable listing monthly payments for one's mortgage loan.

Payment Shock
The situation that occurs when the fixed period with a low interest ends and when the current variable rate is considerably higher.

Payslip
A document issued by the employer to their employee over the agreed periods (weekly, four-weekly or monthly) stating their salary, deductions such as income tax, NI contributions, etc.

P60
A document issued by the employer to their employee at the end of the financial year (every April) as a record of their earnings for the previous financial year as well as tax paid.

Penalties
A type of fine that the borrower may incur should he decide to repay the loan before the fixed period expired.

Pension Mortgage
A type of interest only mortgage that makes it possible for the borrower to use his pension policy to repay the mortgage capital. This type of mortgage is only advisable if you are expecting considerable pension payout.

PEP (Personal Equity Plan)
A type of tax-free savings scheme that is no longer in existence.

Permanent Health Insurance (PHI)
A type of insurance policy that covers against loss of income through long-term illness.

Personal Pension Plan
A type of pension scheme for those who cannot access company pension.

Portable
A type of transferable mortgage where a loan from an old property is transferred to a new property.

Preliminary enquiries
An initial written request forwarded to the sellers' solicitors by the buyers' solicitors for the information about the property which is to be purchased. It usually consists of a set of standard questions.

Premium
A sum of money paid to the insurance company monthly in respect of the relevant insurance cover.

Previous Lender's Reference
A written confirmation from former lender pertaining to one's payment record. It is usually requested by the new lender in cases of unsatisfactory payment profile, although higher lending charge could still by applicable.

Prime Rate
A type of special rate that is only offered to lender's high-rated customers

Principal
The balance that remains outstanding on a loan. A loan interest is calculated on this balance.

Property purchase
A process of acquiring a property.

Purchaser
Often referred to as buyer, a person whose intention is to acquire a property.

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