Use our Jargon Buster to cut through the complicated language financial services companies sometimes use, and find out what it really means. The list is in alphabetical order so you can scroll down to look up words and their meanings:
Market Value Reduction (MVR) Applies only to unitised with-profit policies, and is sometimes known as a Market Value Adjustor (MVA). It applies at times where the investment value of a policy is less than the fund value.
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Minimum Income Requirement (MIR) (pensions)
The minimum level of guaranteed annual income an individual must have to be eligible for flexible drawdown.
It has initially been set at £20,000 per annum, but the level will be reviewed periodically.
Only pensions and annuities in payment and guaranteed for life can count towards the MIR.
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MIRAS (Mortgage Interest Relief at Source) Tax relief on your mortgage interest repayments. MIRAS ended in April 2000.
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Money Purchase Pension Scheme A type of pension scheme where the size of an individual’s benefits depends upon the contributions made by, and for, them; how their investments grow; and the rates for converting pension funds into a pensions income at retirement. They are also known as a defined contribution pension scheme.
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Mortgage A loan commonly used to buy a house. The house is used as security until you've paid off the loan (usually after a fixed length of time). There are three main types of mortgage: repayment, interest only and flexible.
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Mortgage deed The legal document you sign giving the lender the legal right to use your property as security for the mortgage.
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Mortgage Indemnity Premium (MIP) A premium paid for insurance to cover the lender in case your property is repossessed and sold and the lender cannot get all their money back from the sale proceeds. It provides protection for the lender not the borrower, but the borrower typically is required to pay the premium.
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Pearl Assurance Limited No. 1419, London Life Limited No. 1179800, NPI Limited No. 3725037 and National Provident Life Limited No. 3641947 are authorised and regulated by the Financial Services Authority. All companies are registered in England and have their registered office at: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG, Tel: 01564 204321. We may record or monitor telephone calls. Important Company Registration and Legal Information.
