In financial jargon, there is no shortage of TLAs (three-letter acronyms) — which, fittingly, is itself a TLA. For example, you have APR (annual percentage rate), CGT (capital gains tax), PPI (the dreaded payment protection insurance), TAR (total amount repayable) and many more. You’ll find more money language in my Jargon Buster and Devil’s Dictionary Of Money.
One TLA which gives me cause for concern is MEW, or mortgage equity withdrawal. MEW happens when homeowners borrow against their home but don’t reinvest the proceeds into property. This reduces their equity (the value of their homes less any outstanding mortgages) but releases funds to spend or invest elsewhere….