EXPLANATION OF FINANCIAL TERMS
Mandatory quote period
From 8.30am to 4.30pm each
trading day market makers in London are forced by the Stock Exchange rules to
Married woman's stamp
Before 1977 married women had
the option of paying a reduced rate of National Insurance contribution. It did
not give them entitlement to a basic state pension but they may still qualify
for a pension based on their husband's NI contributions.
Mortgage indemnity guarantees
Mig for short. An additional
fee that borrowers must pay if they are taking out a high percentage loan. Borrowers
pay the premium but the lender benefits from the policy if repayment problems
arise. Growing controversy has led a number of lenders to absorb the cost of this
insurance themselves for mortgages of 75-90 per cent of the valuation.
Mortgage protection insurance
A mortgage protection policy
is a life insurance policy that will pay off the whole of the outstanding loan
if a borrower dies. An accident, sickness and unemployment policy will cover the
monthly mortgage repayments for a limited period, usually a year, if the borrower
cannot work because of injury, ill-health or job loss.
An organisation, such as a
building society, with no shareholders. The investors and other members are the
owners so when the organisation demutualises, or floats on the stockmarket, the
members get a windfall payment in shares to reflect the value of their stake.