Redemption
To pay off the mortgage, either to move to another property or at the end of the mortgage term.

Redemption charges
A charge levied by the lender when the mortgage loan is repaid before the end of the full term. See also early redemption penalty.

Redundancy insurance
Known as accident, sickness and unemployment insurance - (ASU) Insurance cover arranged by the borrower to protect against inability to meet mortgage payments. This cover should more accurately be described as accident sickness and redundancy insurance as unemployment cover is generally seriously restricted to cover only events that are entirely beyond the control of the insured person. Typical exclusions include dismissal following professional misconduct and any act of voluntary redundancy. The accident and sickness cover will also be subject to major restrictions such as any act of self-injury or any injury related to the use of alcohol or drugs.

Refinancing
To rearrange borrowings with a different lender, usually to obtain more attractive terms or to raise extra capital.

Regular earned income
Funds, which are not guaranteed but are still a regular part of an employee’s remuneration. Lenders will normally wish to see evidence of such payments being made on a regular basis, e.g. pay slips or P60s covering a period of months or years.

Regulated loan
A loan of under £15,000 regulated under the terms of the Consumer Credit Act.

Remortgage
Arranging a loan on a property in which the borrower already resides. Normally this involves redeeming existing loan(s) on the property. See also unencumbered.

Remortgage with outstanding discount
Refers to a property that has been purchased under a Right to Buy legislation, where the owner now wishes to remortgage whilst there is still an outstanding discount remaining.

Rent allowance
Monies received from an employer to be used towards the cost of accommodation.

Repayment
Payment made to cover interest or reduction in principal of a loan; monthly amount due to the lender.

Retired
No longer working, either on one's own account or as an employee.

Retirement annuity contract
An investment of a lump sum, which produces a regular income for a retired person.

Right to buy
Option for council tenants to purchase the property in which they reside, often at a discount proportional to the length of occupancy.

RTB
An option open to council tenants which enables them to purchase the property in which they reside, often at a discount proportional to the length of occupancy.