Glossary - B
- Bailiff
- An official of the court, who may repossess goods or property belonging to any person or business which fails to maintain their credit payments, and who does not come to any agreement to pay with their creditors.
- Bankruptcy
- The process of declaring a person bankrupt. Bankruptcy remains on your credit file for seven years and limits a person's ability to borrow.
- Bankruptcy: Discharge
- A bankrupt is discharged from bankruptcy after a period of approximately three years and his debt is treated as paid, however credit referencing agencies normally identify former bankrupts for up to 15 years after their discharge.
- Base Rate
- The banks introduced this in 1981 when the minimum lending rate was abolished. This is used to refer to the mortgage lender's standard variable rate.
- Basic Annual Income
- Annual income earned that is guaranteed regardless of the individual's or his or her company's performance. This is important when establishing a borrower's ability to pay, especially for sales people, or other employees where a significant part of their salary package is made up of commissions, bonuses or share options.
- Basis Point
- A basis point is 1/100th of 1%. So the difference between a loan at 9.00% and a mortgage at 9.12% is 12 basis points.
- Before-Tax Income
- This is a persons gross income before tax is deducted.
- Benefit Period
- Time period in which the interest rate of a mortgage is discounted. (See fixed or capped).
- Biweekly Loan
- A loan that asks for payments every two weeks, therefore reducing the term and cost.
- Black Listed
- Term for someone with a poor credit score, originating from Gentlemen's clubs, which used to "black ball" people they did not want as members. Really, there is no such thing as being "blacklisted", although some people clearly have better credit scores than others. Simply being declined for a credit application does not mean that someone is blacklisted; it just means that they do not meet the criteria for that particular lender at that time.
- Booking Fee
- A charge by a lender to secure mortgage funds, payable at the time the loan application is submitted and normally applies only to special offer loans, such as fixed or capped rates.
- Breach Of Contract
- Failure to fulfill the term and conditions of a contract.
- Breach Of Covenant
- Failure to obey a legal agreement.
- Bridging Loan
- Short term loan used as coverage when buying a new property before selling an existing one.
- Broker
- A third party who attempts to find the best available financial or other package. Brokers could be affiliated with a larger network in finance, or they may be independent.
- Broker Fee
- A fee levied by an intermediary to the applicant for negotiating a loan. If a loan has not completed within 6 months of the date of introduction to a lender, the maximum fee that a broker may retain is £300, under the Consumer Credit Act.
- Brokerage
- The firm a broker works for.
- BSA
- The trade organisation for building societies - the Building Societies Association.
- Building Society
- Building societies are mutually owned by their members and regulated by the Buildings Societies Act. The Building Societies Commission lays down restrictions on their lending criteria, so they are less able to help with certain categories of loans.
- Buildings Insurance
- This is an essential insurance policy which covers the structure of the building. 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.
- Buy To Let Mortgage
- A mortgage for a property which the owner intends to let out to tenants.
The Mortgage Shop is a trading style of Mortgage Shop No1 Limited which is an appointed representative of Personal Touch Financial Services Limited which is authorised and regulated by the Financial Services Authority. The Mortgage Shop is entered on the FSA register (http://fsa.gov.uk) under reference 425677. Buy to let mortgages may not be regulated by the FSA & personal loans are not regulated by the FSA. The guidance and/or advice within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
There will be a fee for mortgage advice of £299. Telephone calls may be recorded for training purposes.
