droplock

(ˈdrɒpˌlɒk)

(Banking & Finance) finance a variable-rate bank loan used on international markets that is automatically replaced by a fixed-rate long-term bond if the long-term interest rates fall to a specified level; it thus combines the advantages of a bank loan with those of a bond

Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

References in periodicals archive ?

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During his 1969 safari in Tanzania, Elmer Keith's preferred elephant rifle was this Westley Richards droplock in .476 Nitro Express.

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"Secondly, Tesco's tracker mortgage offers a 'droplock option' - the chance to switch to a fix at any moment without more fees."

Tesco to enter the mortgage market; Jeremy Gates looks at the nation''s money issues and asks whether supermarket giant Tesco can make a mark on the mortgage sector as it takes on the established high street players

Yorkshire Building Society offers an online 'track and fix' product, a variation on the 'droplock' theme.

Turbulence spells stasis for mortgage rates... and that is in the medium term; Jeremy Gates looks at the nation's money issues and reports on how to handle the lowest mortgage rates in history

"At this point in the interest rate cycle, it makes sense to take the droplock option: start on a tracker or discounted rate, with the guarantee you can switch to any new fix the lender is offering without facing an early repayment charge or even go to another lender, without incurring costly transfer charges."

Shave off the pounds ( on your mortgage

'At this point in the interest rate cycle', says Boulger, 'it makes sense to take the droplock option: start on a tracker or discounted rate, with the guarantee you can switch to any new fix the lender is offering without facing an early repayment charge or even go to another lender, without incurring costly transfer charges.'

Good time to look at your mortgage

There is a third option; the so-called "droplock option", currently available from Nationwide and Woolwich, which enables borrowers to begin on a tracker with the option to switch into a fix with no early repayment charges when things get decidedly stormy.

Potential homebuyers could soon feel benefits of Funding for Lending; Jeremy Gates looks at the nation's money issues and asks whether the Government's Funding for Lending scheme will mean cheaper mortgages for homebuyers

charge "Both Nationwide and Scottish Widows have trackers with this so-called droplock option, which lets you switch into a fix at any time with no charge.

Fix that mortgage as storm clouds hover Fix that mortgage as storm clouds hover; They are more expensive, but fixed rates may be safer in uncertain times. Jeremy Gates looks at the options

But borrowers, he says, should get trackers with a droplock option - the option to lock into a fix at any time - and with no early repayment charges.

Household gloom means cash will be king in 2008; PERSONAL FINANCE

This deal has no redemption penalties at any time and features a droplock option, which gives borrowers the right to switch to any of the lender's fixed rates at any time during the first two years.

Winter fuel payments

Ray Boulger, at Charcol, thinks tracker mortgages, moving in line with Bank base rate, are probably best in current circumstances - because "many lenders won't pass on the full benefit as rates comes down unless trackers force them to do so."But borrowers, he says, should get trackers with a droplock option - the option to lock into a fix at any time - and with no early repayment charges.

Cameron's pleas add fuel to fears; MONEY With many people fearful of losing their jobs and homes, the Tory leader's advice may not have been the most helpful

Its "droplock" facility lets borrowers switch into a fix or capped rate mortgage at any time.