Glossary beginning with R

R

Repayment mortgage

This is a mortgage that pays off both the capital and the interest at the same time. Pay all the repayments and the mortgage will be fully repaid at the end of the term.

Risk

Some investments are riskier than others. For example, an investment in the stock market is riskier than money put into savings accounts – there’s more chance of something going wrong and you losing money. Riskier investments tend to offer potentially higher returns as compensation for the risks involved.

RPI

The Retail Prices Index (RPI) measures the change in the cost of a basket of retail goods and services.

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