Financial Terms I
Independent Financial Adviser (IFA): An IFA is an advisor with no affiliations with other financial providers.
Income Protection Insurance: Income protection insurance provides cover if a borrower is unable to make payments on an outstanding loan.
Income Multiples: Income multiples are used for calculating how much money that a potential buyer can borrow. The traditional income multiple used is 3 times income, but this is often exceeded. Income Multiples – How much can I borrow?
http://www.mortgageguideuk.co.uk/blog/mortgages/how-much-can-i-borrow-for-a-uk-mortgage/
Individual Saving Accounts (ISA): Tax-free savings plans launched in April 1999. ISA’s can consist of investments in stocks and shares, cash deposits and insurance.
Individual Voluntary Arrangement (IVA): An IVA permits an individual to avoid bankruptcy and make restitution to creditors. An IVA is viewed as preferable to bankruptcy as the debtor can retain his tools of trade and continue to earn money.
Inheritance Tax: Tax payable on an estate at the time of death. Charged at 40% on assets over £300,000.
Interest Only Mortgages: A mortgage with only interest payments required, and no capital repayments. Usually requires an alternative repayment plan, such as an endowment policy. Interest Only Mortgages
http://www.mortgageguideuk.co.uk/mortgages/interest_only.html
Interest Rates: The rate of interest charged on a loan. The rate is expressed as a percentage and calculated by the lender to ensure the original loan amount is paid back by the end of the term, plus a profit. How interest rates affect the Housing Market
http://www.mortgageguideuk.co.uk/blog/housing/how-do-interest-rates-affect-the-housing-market/
Interest Rate Cycle: Interest rates tend to move in cycles closely related to the business cycle. In a recession, interest rates are often reduced in an attempt to boost spending. In a boom interest rates are increased to inhibit spending and thus reduce inflation. Interest Rate Cycle
http://www.mortgageguideuk.co.uk/blog/uk-housing-market/interest-rate-cycle-in-uk/
Intermediary Mortgage Lenders Association (IMLA): This association represents mortgage lenders who channel their business through mortgage intermediaries, or brokers. Its membership includes banks, building societies and subsidiaries of overseas banks. IMLA is involved in a range of activities, including communicating its members’ views to the Council of Mortgage Lenders and supporting new product development.
IPT: Insurance premium tax.