Mortgage Glossary Index

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Underpayment
A mortgage repayment smaller than the regular agreed sum. Some flexible mortgages have this feature, which can be useful for people with irregular income.

Unemployment insurance
Another form of income protection, but one that does not cover any form of sickness, injury or disability. The purpose of this type of policy is to replace income lost through a short to medium term period of redundancy. It provides you with a monthly tax-free income to cover a portion of your lost earnings. It is often sold in conjunction with the accident, sickness and disability element of income protection policies, in which case it is known as Accident, Sickness and Unemployment (ASU).

Unitised with-profit endowment
This is a hybrid unit-linked endowment, designed to smooth out price fluctuations that occur with unit-linked policies. The value of units is declared each year and that value is then guaranteed. The guaranteed value that is declared is at a discount to the actual value of the units. The guaranteed value will not reach the real value until the term of the endowment is up, so the chance of being able to pay of the loan early is minimised.

Unit-linked endowment
Your monthly premiums are used to buy units in a fund or funds run by professional managers. Like unit trusts, the price of these units can go up and down, so the value of the endowment can constantly change.

Unmortgagable
A property for which you are unable to find a lender willing to give to a mortgage due to the results or a survey, the valuation to price or details of the lease or title deeds.

Unpaid ground rent charge
If you are a leaseholder, and the freeholder notifies the lender that you have not paid your ground rent or service charge, the lender may penalise you. Costs £30 - £50.

Unpaid service charge
If you are a leaseholder, and the freeholder notifies the lender that you have not paid your ground rent or service charge, the lender may penalise you. Costs £30 - £50.

Unrecorded deed
An unrecorded deed transfers ownership from one party to another without being officially recorded.

Unregistered land
Land/property not yet held on the database at HM Land Registry.

Unsecured loan
Any loan that is not backed by collateral.