EXPLANATION OF FINANCIAL TERMS
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RPI
Retail prices index. The main
measure of inflation in Britain. It is sometimes referred to as "headline" inflation.
Underlying inflation adjusts the figure for mortgage interest payments.
Redemption penalties
The cost of repaying a mortgage
early. Beware of confusion. The building societies ombudsman says that "borrowers
consistently fail to understand why they cannot 'transfer' to another product
within the society, except on payment of a redemption penalty, when the penalty
is said to be payable only on 'repayment'." Before you sign on the dotted line
for a home lone, read the terms that apply to you.
RNS
Regulatory News Service. Operated
by the Stock Exchange. It collects price sensitive information from listed companies
and distributes it to all RNS subscribers in stockbroking offices, dealing rooms
and media organisations.
Re-mortgage
You may re-negotiate a better
mortgage deal for your existing property. A re-mortgage may prove cheaper in terms
of legal fees than an ordinary mortgage because legal fees may well be paid by
the new lender.
Rights issue
A way for a company to raise
money by issuing more shares in an offer to shareholders. As a shareholder you
have a "right" to a certain number of shares under the terms of the offer, ie
one new share for every five you hold. You may, or may not, wish to take up these
rights depending on what you think of the prospects for the company and on whether
you can spare the extra money.
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