A-Z financial terms glossary & jargon buster


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Market value

The price of something on the open market.

Market value adjustment (MVA)

This is a penalty you may have to pay if you cash in a with-profits policy early. This is also called a market value reduction (MVR). For more on MVRs see our guide on endowment plans.

Married couple's allowance

A tax allowance married couples or people in a civil partnership can claim if one or both of them were born before 6 April 1935. For the latest rates see our income tax tables.

Maternity allowance

State benefit for women expecting or who have just had a baby and are not eligible for Statutory Maternity Pay. For more on maternity and paternity benefits see our guide.

MIG

See mortgage indemnity guarantee.

Minimum investment

The minimum investment an investment provider will accept.

Money purchase scheme

Type of pension scheme where your contributions are invested in a fund and the value of your pension pot at retirement will depend on how well your investments have performed. Money purchase schemes are also called defined contribution schemes.

Mortgage

A loan (usually to buy a property) that is secured against your home. With this type of loan, if you don't keep up with the repayments you could lose your home. For more on the types of mortgages available and how to choose a mortgage, see our guides.

Mortgage indemnity guarantee (MIG)

A one-off fee charged by some mortgage lenders if you borrow a high percentage of a property's value, such as a 90% mortgage. This fee, which is also called a high lending charge, covers the lender if you default on your repayments .

Mortgage payment protection insurance (MPPI)

Insurance specifically designed to meet your monthly mortgage repayments if you're unable to work due to an accident, illness or redundancy. For more on MPPI see our guide.

MPPI

See mortgage payment protection insurance.

Mudaraba

Islamic finance term for an investment contract between two parties. One party provides funds the other investment expertise and the two parties agree in advance to the division of any profits made. For more on Islamic finance see our guide on Sharia-compliant financial products.

Multi-tied adviser

A financial adviser who is only able to advise on and sell products from a specific range of providers. For more on the types of financial advisers there are see our guide on how to choose a financial adviser.

Murabaha

In Islamic finance this is a form of credit where a bank buys an asset chosen by a customer and then immediately sells it to them at a higher price. The customer then pays this higher price in instalments over an agreed period of time. This method can be used as a Sharia-compliant way of buying a home. For more on Islamic finance, see our guide on Sharia-compliant financial products.

Musharaka

In Islamic finance this is a partnership agreement where you give money to a third party to invest for you and you then share in any profit or loss from the investment. For more on Islamic finance see our guide on Sharia-compliant financial products.

Mutual society

An organisation owned by and run for the benefit of its members such as a building society, friendly society or credit union.

MVA

See market value adjustment.

MVR

See market value adjustment.


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