US Equivalent of UK Financial Terms – Quick Guide
If you live in the UK and are curious about how American banks and lenders call the same things, you’re in the right place. Below you’ll see the most common UK words and what they mean across the pond. Knowing the US equivalents helps you compare offers, avoid confusion, and make smarter choices whether you’re looking at a credit card, a mortgage, or an insurance policy.
Credit Cards: UK vs US
In the UK we talk about “sign‑up bonuses”, “balance transfer offers” and the “24‑month rule” for some cards. In the US the language changes a bit. A UK sign‑up bonus is called an introductory bonus or welcome bonus and usually comes as points, miles or cash back after you spend a set amount. The “24‑month rule” you might have read about with Chase cards is known in the US as the 12‑month double‑spend rule – you need to spend a certain amount twice in a year to keep the bonus.
Balance transfers work the same way, but American cards call them balance transfer offers and often list a “0% APR for 18 months” instead of “0% for 24 months”. The key difference is that US cards usually charge a fee of 3‑5% on the amount you move, while many UK cards waive the fee for the first transfer.
When you compare UK and US cards, look at the annual fee, the interest rate after the intro period, and how quickly you can earn the bonus. A UK card that says “no annual fee” is often similar to a US “no annual fee” card, but the reward categories can differ – UK cards might focus on groceries, while US cards often target travel or dining.
Mortgages and Equity Release: UK vs US
In the UK we have “remortgaging”, “equity release” and “home reversion”. In the US the closest match for remortgaging is simply a refinance. A refinance lets you change the interest rate or term on an existing loan, just like a UK remortgage, but US lenders often charge an “origination fee” up front.
Equity release in the UK includes “lifetime mortgages” and “home reversion plans”. The US version is called a reverse mortgage. Both let you tap into the value of your home without making monthly payments, but the rules differ. A US reverse mortgage (HECM) requires you to be 62 or older and the amount you can draw depends on your age, home value, and interest rate. UK lifetime mortgages let you keep the loan balance growing, while US reverse mortgages usually set a monthly payment or line of credit that you control.
If you’re looking at “borrowing more on your mortgage without remortgaging”, the US term is a home equity loan or a home equity line of credit (HELOC). A UK homeowner might call this “top‑up mortgage”. The main thing to watch is the interest rate: UK top‑ups often use the same rate as the original mortgage, while US HELOC rates can be variable and change with the prime rate.
Insurance terms also have clear US equivalents. The UK “homeowners insurance” is simply homeowners insurance in the US, but the coverage layers differ. The UK’s “building insurance” is covered under the US “dwelling coverage”, and “contents insurance” maps to “personal property coverage”. When you compare policies, check the limits for “personal liability” – the US often calls this “personal liability” while the UK may list it as “legal liability”.
Finally, remember that credit scores work differently. The UK uses a 0‑999 scale, while the US uses 300‑850. A good UK score of 800 roughly equals a US score of 740‑760. This matters when you apply for any of the products above, because lenders in each country use their own scoring model to set rates.
Knowing these US equivalents helps you read American offers with confidence. Whether you’re hunting for a new credit card, thinking about a refinance, or just curious about reverse mortgages, the core ideas stay the same – it’s the naming and a few details that change. Use this guide as a cheat sheet the next time you see a term you don’t recognize, and you’ll be ready to compare the real costs and benefits across the UK and US markets.
