Part Endowment
This describes a mortgage where only part of it is covered by an endowment policy. The balance could be arranged on an interest only basis or more commonly on a capital and interest basis.

P.C. Banking
Facility to access your account via a computer modem link. This usually allows you to check your balance, order statements, cheque books etc

Payment Protection
(see Credit Insurance)

Penalty Interest
Loss of interest or charge incurred on partial withdrawal or closure of account where account conditions allow.

Pension Mortgage
This is an interest only mortgage which is supported by a Personal Pension Plan. Interest only is paid to the lender and in addition premiums are paid into a Personal Pension Plan. On retirement a portion of the personal pension fund can be taken as a tax free cash sum and it is this cash lump sum (or a part of it) which is used to repay the mortgage debt. The disadvantage of this type of mortgage is that the mortgage term must run through to anticipated retirement age (for the younger borrower this could exceed 25 years) and part of the retirement fund is used to repay the mortgage debt. The advantage is that the pension premiums attract tax relief at the borrowers highest rate.

PEPs
Personal Equity Plans. These offered the private investor the most tax efficient way of investing in stock market related plans, but ended on 5 April 1999 to be replaced by ISAs. Any balance held in these plans still attracts the same tax benefits, being free of any income tax or capital gains tax liability.

Pep Mortgage
This is an interest only mortgage which is supported by a Personal Equity Plan. Interest only is paid to the lender and at the same time contributions are made to a Pep with the aim that the mortgage debt will be repaid on or before the end of the mortgage term from the proceeds of the Pep. Pep's were withdrawn on 5th April 1999 and were replaced by the Individual Saving Account. Existing Pep plans can remain in force and will remain both income tax and capital gains tax free.

Permanent Health Insurance (PHI)
This is a type of insurance which will pay a proportion of normal income in the event that the policyholder is unable to work due to accident, sickness or disability. These policies are normally used to replace a percentage of full income rather than just the mortgage repayment but the level of cover can be selected up to certain maximum levels. This type of cover should not be confused with ASU/ASR policies which will normally only cover the mortgage payment for a limited period of time. PHI policies can be arranged to pay income until a return to work or normal retirement age.

Personal allowance
The amount of income that can be earned before the individual becomes liable to income tax. Personal allowances are set each year by the Chancellor in his annual budget.

Personal Pension Plan
Personal Pension Plans are designed to cater for pension planning for the self employed or employed in non-pensionable employment. Contributions made to a personal pension plan are exempt from tax at the persons highest rate of tax and the retirement age may be selected at any time from age 50 to age 75. Up to 25% of the pension fund on retirement may be taken as a tax free cash sum and it is this tax free sum which is used to repay the mortgage debt in the case of a Pension Mortgage.

PLC - Public Limited Company
The standard form of public company in the UK that qualifies for listings on the stock market. A public limited company is owned by its shareholders.

Portable
This describes the ability to move a particular mortgage product from one property to another in the event of a property move. This is particularly important if a fixed, capped, cash back or discounted product is taken where early redemption penalties are charged. If the product is not 'portable' then a house move would involve the payment of early redemption penalties even if another mortgage was taken with the same lender.
A portable mortgage means that the same scheme is transferred to the new mortgage for the remainder of the original term e.g. a 5 year fixed rate is taken which has redemption penalties within the first five years. If the borrower decides to move after two years then the same five year rate will apply to the new mortgage for the balance of the remaining three years. If the original product was not portable, however, then redemption penalties would be paid on redemption of the existing mortgage and a new product would have to be taken for the new mortgage.

Postal Account
An account where any withdrawals or investments are made via the post. The bank or building society normally supply pre-paid envelopes for this and some may offer additional facilities to enable instructions to be given via the telephone or fax.

Proxy
Authorisation of a person or legal entity to represent or if necessary act and vote on behalf of another.