Payment Default: Failure to make a credit repayment. If the loan is secured against a property, the lender is entitled to repossess it to recover the debt.
Payment Schedule: A schedule of monthly loan repayments.
Pension Mortgage: A pension mortgage is an interest-only mortgage where the capital is repaid from the tax-free cash sum received from a pension fund at maturity. This option is only credible for holders of very large pension funds.
Portable Mortgage: A mortgage that can be transferred from one property to another.
Prime Rate: The lowest interest rate possible made available to the lender’s most valued customers.
Principal: The amount of a loan still outstanding – the outstanding sum on which interest is calculated.