|
|
GLOSSARY
Balance Sheet
A statement of financial accounts for a certain date, including, for instance, assets, liabilities and equity.
Bankrupt
An individual debtor (person, company, corporation) whose assets are administered by a court-appointed trustee for the purposes of redistribution to the debtor's creditors.
Bankruptcy
The legal process by which a debtor who owes more than their assets has these assets transferred to a court-appointed administrator. Bankruptcy can be discharged within 12 months, but remains on your credit rating for seven years and limits a person's ability to borrow.
Base Rate
The basic interest rate set by the Bank of England from which most lenders set their rates for mortgage lending and payment to savers.
Basic Earned Income
See Basic Income
Basic Income
Gross salary before taxes, excluding overtime, bonuses, commission etc.
Basic variable mortgage rate
Mortgage lender's standard rate of interest which may be increased or decreased periodically by the lender depending on prevailing economic conditions.
Basis Point
A basis point is 1/100th of 1%. For example the difference between a loan at 9.00% and a mortgage at 9.12% is 12 basis points.
Beneficial Owner
Person owning land and entitled to it for his own benefit. Not, for instance, a trust that holds the land for the benefit of another.
Beneficiary
A person entitled to benefit, for instance under the terms of a trust or a will.
Benefit Period
Time frame in which the interest rate of a mortgage is discounted. see Fixed or Capped.
Bond
A fixed length agreement to pay interest on a debt, for instance a Treasury Bond.
Bonding Scheme
An agreement by members of a profession or trade to establish a central compensation fund which consumers can draw on in cases of fraud or insolvency.
Booking Fee
A fee to guarantee that a special rate, funds, product or place will be available, provided that the application is received by a given date. also called a Reservation Fee.
Breach
A violation of any legal obligation, for instance breach of warranty or breach of trust.
Breach Of Contract
Failure to fulfil the term and conditions of a contract.
Breach Of Covenant
Failure to obey a legal agreement.
Bridging loan
A short-term loan providing financial cover which allows a purchaser to complete on the purchase of a new property whilst still offering his own for sale.
Bridging Finance
See Bridging loan
Broker
A person who advises on and/or attempts to find the best available financial product or other package. Brokers could be affiliated with a larger network in finance, or they may be independent. see Mortgage Broker or Intermediary.
Broker Fee
A fee charged by a broker(intermediary) to the applicant for arranging the most appropriate mortgage.
BSA
Building Societies Association – the trade organisation for building societies.
Building Society
A mutual society whose purpose or principal purpose is to provide mortgages and savings accounts, owned by their members and regulated by the Buildings Societies Act.
Buildings Insurance
An essential insurance policy which covers loss or damage to the main structure of the property fixtures and fittings, perimeter fences/walls and outbuildings. Where the property is leasehold the buildings insurance will normally be arranged by the freeholder and the cost charged on to the leaseholder within the service charges payable. Most mortgage lenders will require you to take out buildings insurance as a condition of their loan.
Buildings and Contents Insurance
Combined insurance covering both the structure of the property, and its contents.
Building survey (formerly full structural survey)
A full inspection of the property, conducted by a chartered surveyor, who then writes a detailed report including any property defects. Suitable for any house, particularly older properties and those which have been poorly maintained. Also for properties which have been extensively altered or extended, or any property you may wish to alter or extend.
Buy to Let Mortgage
A type of mortgage specifically designed for borrowers wanting to buy a property with the investment intention of letting it out to others.
|
|
|
|
