Money Terms in Plain English.

H

Halving (Bitcoin)

The point, around every four years, when the reward for mining bitcoins is cut in half.

In plain English:Every few years, the number of new bitcoins given to miners is cut in half, so new coins are made more slowly.

MoreLess about Halving (Bitcoin)

It happens about every four years, until the 21 million coin limit is reached.

It's written into Bitcoin's code. Some people believe it pushes prices up, because fewer new coins come out, but past patterns aren't a promise.

The last bitcoin is expected to be mined around the year 2140.

For example: After the 2024 halving, each new block earned miners half as many bitcoins as before.

Article inside Foliopeak: CryptocurrencyGame: Halving Clock

Hang Seng

Hong Kong's main stock market index, often used as a guide to China.

In plain English:A list of the biggest companies on the Hong Kong stock exchange, often used to see how Chinese shares are doing.

MoreLess about Hang Seng

It's run by a Hong Kong company and includes banks, property developers and tech firms.

Chinese government decisions can move it a lot. It fell sharply between 2021 and 2022.

For example: News of new Chinese rules on tech companies sends the Hang Seng down several percent in a day.

See also: Index

Hard and soft searches

Credit checks that other lenders can see, and ones they can't.

In plain English:A hard search happens when you apply for credit, and other lenders can see it. A soft search, like checking your own file, isn't seen by lenders.

MoreLess about Hard and soft searches

Several hard searches close together can make lenders think you're short of money. They stay on your file for about a year.

Comparison sites often use soft searches to show how likely you are to be accepted.

For example: Someone checks eligibility for five credit cards with soft searches, then applies only for the one they're most likely to get.

Article inside Foliopeak: Soft Searches, Hard Searches, and Checking Your Own File

Hash rate

The total computing power used to mine a cryptocurrency.

In plain English:How much computer power is being used to mine a cryptocurrency. A higher rate makes the network harder to attack.

MoreLess about Hash rate

It's measured in hashes per second, often in huge numbers. It goes up as more miners join or machines get faster.

An attack would need over half the network's power, which is extremely costly for Bitcoin.

For example: Bitcoin's hash rate dropped sharply in 2021 when China banned mining, then recovered as miners moved abroad.

See also: Crypto mining

Health cash plan

Cheap insurance that pays back some everyday health costs.

In plain English:A cheap insurance plan that pays you back some costs like dental check-ups, glasses and physio.

MoreLess about Health cash plan

You pay a monthly amount and claim back costs you've paid. Some are offered by employers.

It doesn't cover big treatments like private surgery, which need health insurance.

For example: Someone pays £80 for an eye test and glasses, and their health cash plan pays back £60.

Healthy StartApplies in England, Wales, Northern IrelandEnglandWalesN. Ireland

A prepaid card for healthy food for pregnant people and young families on benefits.

In plain English:If you're pregnant or have young children and get certain benefits, you can get a prepaid card to buy milk, fruit and vegetables.

MoreLess about Healthy Start

You apply online. The card is topped up every four weeks and can be used in many shops.

You can also get free vitamins.

For example: A pregnant woman on Universal Credit gets a Healthy Start card and uses it to buy milk and fruit each week.

Hedge fund

A lightly regulated fund for wealthy investors that uses complex strategies.

In plain English:A fund for wealthy and professional investors that uses risky methods, like borrowing and betting on falls, and charges high fees.

MoreLess about Hedge fund

They often charge "2 and 20": a yearly fee and a share of any profits. Many don't beat simple index funds after fees.

Some pension funds invest in them. Everyday investors usually can't buy them directly.

For example: A hedge fund bets that a company's shares will fall, while buying another's, to make money either way.

Hedging

Holding something that gains when another investment loses, to reduce risk.

In plain English:Making a second investment that should gain if your first one loses, a bit like insurance against a bad outcome.

MoreLess about Hedging

It works like insurance. It costs money and limits gains as well as losses.

Businesses hedge too, such as an importer fixing an exchange rate for future bills.

For example: A UK company that buys goods in dollars fixes its exchange rate for the next six months, so a fall in the pound won't raise its costs.

Article inside Foliopeak: Currency Risk on Overseas Holdings

HELOC (home equity line of credit)

A US loan secured on your home that you can draw from as needed.

In plain English:An American loan that lets you borrow against the value of your home whenever you need to, up to a limit.

MoreLess about HELOC (home equity line of credit)

HELOC stands for home equity line of credit. The interest rate usually changes with US rates.

Like any loan secured on a home, not keeping up payments can mean losing the home.

For example: A US homeowner uses a HELOC to pay for a new kitchen, borrowing only what they need as the work goes on.

See also: Second charge mortgage

Help to Buy equity loanApplies in EnglandEngland

A closed government loan that helped people buy new-build homes.

In plain English:A government loan that helped people buy new-build homes with a small deposit. It's now closed, but people who have one must pay it back.

MoreLess about Help to Buy equity loan

After five years, interest is charged and rises each year. You can pay it off early in parts or in full.

If the home's value rises, you pay back more than you borrowed.

For example: Someone borrowed 20% of a £250,000 home's price. When they sell for £300,000, they repay £60,000, 20% of the new value.

Help to Buy ISAUK

A closed first-home savings account with a government bonus.

In plain English:A savings account for first-time buyers where the government added a bonus. It's closed to new savers, but existing ones can keep paying in until it ends.

MoreLess about Help to Buy ISA

It closed to new savers on 30 November 2019. Holders can pay in up to £200 a month until 30 November 2029, and the 25% government bonus, up to £3,000, is claimed on buying a first home.

You can hold one alongside a Lifetime ISA, but the bonus can only be used from one for the same home. The bonus is paid to your solicitor.

Money can be moved into a cash ISA or Lifetime ISA if you're not buying.

For example: A first-time buyer with a Help to Buy ISA tells their solicitor, who claims the bonus towards the purchase.

Article inside Foliopeak: The Help to Buy ISA, If You Still Have One

Help to SaveUK

A government savings account with a bonus for people on Universal Credit.

In plain English:If you get Universal Credit and work, you can save a small amount each month and the government adds a bonus of half what you save.

MoreLess about Help to Save

You can save a small amount each month, and the bonus is half of the most you saved. Money can be taken out, but it lowers the bonus.

Check if you can apply with HMRC.

For example: Someone on Universal Credit saves £50 a month for two years and gets a bonus of £600.

Article inside Foliopeak: Savings Accounts: Comparing Them Properly

Herd behaviour

Buying or selling because everyone else seems to be.

In plain English:Doing what everyone else is doing, like buying because prices are rising or selling in a panic. It often leads to buying high and selling low.

MoreLess about Herd behaviour

It happens because following others feels safe, even when it isn't. Social media can make it stronger.

Having a plan and sticking to it is one way to avoid it.

For example: During the dot-com bubble, many people bought tech shares because everyone they knew was, then lost money in the crash.

See also: Bubble

High Income Child Benefit Charge (HICBC)UK

A tax that takes back Child Benefit from higher earners.

In plain English:If you or your partner earn over a set amount, some or all of your Child Benefit is taken back through tax.

MoreLess about High Income Child Benefit Charge (HICBC)

It starts when the higher earner's adjusted net income goes over £60,000, and takes back all of it by £80,000, whichever partner receives the benefit.

It's paid through Self Assessment or a tax code. Paying into a pension or giving to charity can lower adjusted net income and the charge.

Even if you stop the payments, claiming Child Benefit can protect a non-working parent's State Pension.

For example: With adjusted net income of £70,000, halfway between £60,000 and £80,000, you pay back half your Child Benefit.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: Child Benefit, and the Charge That Takes It BackGame: Cliff Edge

High Value Council Tax SurchargeApplies in EnglandEngland

A planned extra yearly charge on England's most valuable homes.

In plain English:A planned extra yearly charge on the most expensive homes in England, on top of Council Tax.

MoreLess about High Value Council Tax Surcharge

It's planned from April 2028.

It's planned for England only. How homes will be valued and banded is still being worked out.

Owners, not tenants, will pay it.

For example: The owner of a very valuable house in London would pay the surcharge on top of their usual Council Tax bill.

High-frequency trading

Computers trading huge numbers of shares in fractions of a second.

In plain English:Computers buy and sell shares thousands of times a second, making tiny profits on each trade.

MoreLess about High-frequency trading

It needs very fast computers placed close to exchanges. Supporters say it makes buying and selling cheaper; critics say it adds risk.

The 2010 "flash crash" saw US shares fall and recover in minutes, partly due to fast trading.

For example: A trading firm's computers buy and sell the same share thousands of times a second, making a fraction of a penny on each trade.

See also: Market maker

Higher rates refund (stamp duty)Applies in England, Northern IrelandEnglandN. Ireland

Getting the extra stamp duty back if you sell your old home within a few years.

In plain English:If you paid extra stamp duty because you hadn't sold your old home yet, you can get it back if you sell it within three years.

MoreLess about Higher rates refund (stamp duty)

Sell or give away your old main home within 3 years and you can claim the extra 5% back from HMRC.

Your solicitor can help claim it. HMRC's online form asks for details of both homes.

For example: Buy a £400,000 home before your old one sells and you pay £20,000 extra. Sell the old one 8 months later and you can claim the £20,000 back.

Figures checked 8 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: Stamp Duty Land Tax

Hire purchase (HP)

Paying for something in instalments, owning it only after the last one.

In plain English:You pay for something, like a car, in monthly payments. It's not yours until you've made the last one.

MoreLess about Hire purchase (HP)

Until the last payment, the lender owns it, and can take it back if you stop paying. After you've paid a third, it needs a court order to do so.

You can usually end the deal early once you've paid half, and hand the car back.

For example: Someone pays a deposit on a car and then 48 monthly payments. After the last one, the car is theirs.

Article inside Foliopeak: Car Finance: PCP, Hire Purchase and Leasing

HM Land RegistryApplies in England, WalesEnglandWales

The government body that records who owns land and property.

In plain English:The government office that keeps the official record of who owns land and homes in England and Wales.

MoreLess about HM Land Registry

You can look up most property records online for a small fee. It's useful for checking who owns a home.

Owners can sign up for free property alerts to warn them of fraud.

For example: Someone pays a small fee to get the title register for a house they're thinking of buying, to see who owns it.

HM Treasury and the ChancellorUK

The government department that runs the UK's public money, led by the Chancellor.

In plain English:The government department in charge of the UK's money, including taxes and spending. The Chancellor runs it.

MoreLess about HM Treasury and the Chancellor

It also sets the rules for financial firms with regulators, and decides how much each department can spend.

It has a lot of power across government, and the Prime Minister is officially its First Lord.

For example: HM Treasury publishes the Budget documents showing how much tax and spending each change involves.

See also: Budget

HMO (house in multiple occupation)UK

A rented home shared by people from different households.

In plain English:A home rented to three or more people who aren't one family and share a kitchen or bathroom. Landlords need extra licences and safety checks.

MoreLess about HMO (house in multiple occupation)

HMO stands for house in multiple occupation. Landlords must meet safety rules, such as fire alarms and room sizes.

Running one without a needed licence can mean big fines.

For example: Five students from different families share a house with one kitchen. The landlord needs an HMO licence from the council.

HMRCUK

The government department that collects UK taxes.

In plain English:The government department that collects taxes, like Income Tax and VAT, and pays some benefits, like Child Benefit.

MoreLess about HMRC

It deals with tax returns, refunds and tax codes. You can check your tax and records in your online account or the HMRC app.

Scammers often pretend to be HMRC by text or phone. HMRC won't text you about refunds.

For example: Someone logs into the HMRC app to check their tax code and see their National Insurance record.

HMRC compliance check (enquiry)UK

When HMRC looks more closely at your tax return and asks to see your records.

In plain English:HMRC takes a closer look at your tax return and asks to see your records. It doesn't mean you've done anything wrong.

MoreLess about HMRC compliance check (enquiry)

Most are routine, and don't mean anything is wrong. Replying on time with the records asked for helps it close quickly.

Penalties can apply if mistakes were careless or deliberate.

For example: HMRC writes asking a landlord for receipts for repair costs claimed. They send them, and the check closes with no change.

HODL

Crypto slang for holding on to coins rather than selling, even when prices fall.

In plain English:Crypto slang for holding on to your coins and not selling, even when prices drop. It started from a typo of hold.

MoreLess about HODL

It's now used to mean holding for the long term. Some people turned it into "hold on for dear life".

Holding through big falls can work out, but it can also mean losing a lot if a coin never recovers.

For example: Someone keeps their bitcoin through a 70% fall in 2022, saying they're hodling.

Article inside Foliopeak: Cryptocurrency

Holding company

A company that owns shares in other companies.

In plain English:A company whose main job is to own shares in other companies, often to keep a group's businesses together.

MoreLess about Holding company

Profits paid up from the trading company to a holding company are usually free of tax. It can make selling part of a business easier.

It adds costs and paperwork, so it suits bigger businesses or those with several companies.

For example: A business owner sets up a holding company that owns their trading company and a separate property company.

Holding deposit (renting)UK

Money paid to hold a rental home while the landlord does checks, capped at one week's rent.

In plain English:A small amount you pay to reserve a rental home while the landlord runs checks. It's capped by law and usually comes off your first rent or deposit.

MoreLess about Holding deposit (renting)

The landlord must give you a deadline to agree the tenancy, usually 15 days. If they pull out, they must pay it back.

Scotland and Northern Ireland have their own rules.

For example: Someone pays a holding deposit on a flat. When the tenancy starts, it's put towards their first month's rent.

Holiday payUK

Pay for the paid holiday every worker is entitled to each year.

In plain English:Almost every worker has the right to paid holiday each year. Your employer must pay you while you take it.

MoreLess about Holiday pay

Every worker gets 5.6 weeks a year, which is 28 days for someone working five days a week.

Employers can include bank holidays in it. Holiday pay should usually reflect regular overtime and commission, not just basic pay.

Unused holiday must normally be paid when you leave a job.

For example: Someone leaves a job with five days' holiday unused and gets paid for them in their final pay.

Article inside Foliopeak: Bonuses, Overtime and Benefits: What Lands in Your Pay

Home bias

Holding more of your own country's investments than makes sense.

In plain English:Most people put too much of their money in their own country's shares, even though the UK is a small part of the world's markets.

MoreLess about Home bias

It happens because people feel safer with familiar companies. But the UK is only a small part of world markets.

It can mean missing out on growth elsewhere, or having too much riding on one economy.

For example: Someone holds only UK shares, even though the UK is a small part of global stock markets.

Article inside Foliopeak: Home Bias: Why Your Portfolio Is Probably More British Than It Should Be

Home purchase plan (Islamic mortgage)

A way to buy a home without paying interest, by buying the bank's share back over time.

In plain English:A way to buy a home that fits Islamic rules. The bank buys the home with you, and you pay rent and buy its share bit by bit instead of paying interest.

MoreLess about Home purchase plan (Islamic mortgage)

The monthly payment includes rent and a payment to buy more of the home. Costs can be similar to a mortgage.

You can use one to remortgage too.

For example: A Muslim couple uses a home purchase plan. The bank owns 80% of the home at first, and they buy it back over 25 years.

Home reversion plan

Selling part of your home in return for cash while you keep living there.

In plain English:You sell part or all of your home to a company for less than it's worth, and keep living there rent-free until you die or move into care.

MoreLess about Home reversion plan

You usually get much less than the market value of the share you sell. Any rise in value of that share goes to the provider.

You can live there until you die or go into care. Advice is needed.

For example: Someone sells half their £300,000 home to a provider for £60,000 and can live there for life.

See also: Equity release

Home survey

An inspection of a home's condition before you buy it.

In plain English:An expert looks over a home before you buy, to spot problems like damp or cracks. It's more thorough than the lender's valuation.

MoreLess about Home survey

A survey can find problems that lower the price or change your mind. Surveyors registered with RICS follow set standards.

Older or altered homes usually need a more detailed survey.

For example: A survey finds damp in a 1930s house. The buyer gets the seller to lower the price by the cost of fixing it.

Article inside Foliopeak: Buying a Home: From Offer to Keys

Hostile takeover

A bid to buy a company that its board doesn't want.

In plain English:When someone tries to buy a company even though its board says no, often by going straight to the shareholders.

MoreLess about Hostile takeover

The board may look for a friendlier buyer, called a white knight. Shareholders decide whether to sell.

Bidders must make clear offers and can't keep changing them forever.

For example: A rival company offers to buy a supermarket's shares at a high price, against the board's advice. Most shareholders accept.

See also: Takeover

Hot and cold wallets

Crypto wallets that stay online, which is handy, or offline, which is safer.

In plain English:A hot wallet is connected to the internet, so it's handy but easier to hack. A cold wallet is kept offline, so it's safer for large amounts.

MoreLess about Hot and cold wallets

Many people keep a small amount in a hot wallet and the rest in a cold one. Exchanges usually hold most coins in cold storage.

Cold wallets need careful backup of the recovery phrase.

For example: Someone keeps £200 of crypto on a phone app for spending, and the rest on a hardware wallet in a drawer.

Article inside Foliopeak: CryptocurrencyGame: Seed Phrase Safe

Household Support FundApplies in EnglandEngland

Council help in England with food, energy and other essentials.

In plain English:Money councils in England can give to help people struggling with food, energy and other essentials. Ask your council.

MoreLess about Household Support Fund

Help can include vouchers for food, help with energy bills or essential items like beds and cookers.

Each council decides who qualifies and how much, often favouring families and pensioners.

For example: A pensioner struggling with energy bills gets a voucher from their council's household support fund.

Housing BenefitUK

Help with rent, now mainly for older people.

In plain English:Help paying rent, now mostly for people over State Pension age or in special housing. Most others now get Universal Credit instead.

MoreLess about Housing Benefit

It's paid by the council. Pension Credit can come with it.

The amount depends on income, savings and household size, and limits apply for private renters.

For example: A retired tenant on a small pension gets housing benefit from the council towards their rent.

Hyperinflation

Inflation so fast that money quickly becomes almost worthless.

In plain English:When prices rise so fast, sometimes daily, that money becomes almost worthless. It's very rare and usually comes with a big crisis.

MoreLess about Hyperinflation

Germany had it in the 1920s and Zimbabwe in the 2000s.

People rush to spend money before it loses value, which makes it worse. Savings can be wiped out.

Countries often end it by bringing in a new currency or using a foreign one.

For example: In Zimbabwe in 2008 prices doubled about every day, and the government printed notes of 100 trillion dollars.

See also: Inflation