:: UK JARGON INFOGUIDE
Bad Credit
This another term used to describe Credit Problems due to an adverse
credit history. CCJ's, Mortgage Arrears and other credit debt
repayment problems leads to a Bad Credit Rating. Bad Credit is more of
an American term with the UK more commonly using Poor Credit. When
used to describe: Bad Credit Mortgages or Bad Credit Loans they mean
Mortgages or Loans for people with Credit Problems or a Poor Credit
History.
Bank of England Base Rate
This is set by the Bank of England and can alter quite regularly.
Lenders then put there interest rate on top and depending if you have
a capped rate or variable rate your repayments will go up or down. Any
changes to the rate are announced by the Bank of England's Monetary
Policy Committee.
Bankrupt
This occurs when a debtor is unable to pay their debts. The lender(s)
or creditors move to secure what monies they can from any existing
assets (property) held by that person. All property is then
administered by the official receiver.
Bankruptcy
Discharged From Bankruptcy - After a period of time a Bankrupt
Individual can be discharged from bankruptcy. This then releases them
from their financial obligations. There are some lenders that will
provide mortgages for ex-bankrupts.
Black Listed
All your credit history will be stored on databases by credit
reference companies. A lender will check these to find out your credit
status. If you have a severe credit history and your record will be
black listed to note severe risk. Some lenders will still lend on this
but the interest rate will be high until you can improve your credit
history.
Buildings Insurance
All mortgage lenders will insist that the property has Buildings
Insurance. This covers their investment in your property but most of
all it covers your property against fire, flood and subsidence etc.
This usually includes any external parts of the property such as your
shed, garage, conservatory or greenhouse.
Buy to Let
This is a method to invest money in property. You will need a Buy to
Let Mortgage if you want to rent or let the property you want to buy.
This term describes where a property is purchased for the purpose of
letting it out to tenants, which will generate an
income for the purchaser.
Broker
An intermediary who assists arranging suitable financial products or
policies for you with a Lender able to provide it at the most
competitive terms. The broker who may be independent or part of a
network and often carries out the administration to do with processing
the loan.
Booking Fee
Another term to describe a fee which is payable upfront to either
source or reserve funds for a mortgage. Usually applicable for fixed
or capped rate mortgages.
Building Society
Building Societies are mutual organisations regulated by the Building
Societies Act. This means that their members (account or mortgage
holders) actually own the organisation. Building Societies are only
allowed to raise limited external funds and are generally stricter to
whom they lend than Banks and other organisations.
Bailiff
An official representative of the courts, who may call round to
repossess your possessions or house if you cannot keep up on your
mortgage repayments and fail to reach an agreement with your lender to
amend your repayments.
Basic valuation
This is carried out for the purposes of mortgage and is prepared for
the lender. A survey will also help you to find out independently
whether the price is reasonable. Most mortgage lenders will insist on
a basic valuation to make sure that the property is worth the amount
you are paying for it. This is called a survey but it is aimed at what
the lender needs to know. If you pay extra for your survey for a
homebuyers report or full survey then you could save money in the
future by finding potential structural problems etc..
Boundaries
These are the areas around a property which identify the start and end
of the land and ownership.
Bridging loan
This is a short term loan provided by a bank or building society which
covers you if you need to pay for your next home, while still waiting
for the money to come through from the sale of your current home. If
you do require one of these, you must ensure that the funds to repay
the loan will be in place when the loan period expires.
Building survey
Also known as a full survey, this is the fullest and most
comprehensive of the options open to the property buyer. It involves
an extensive investigation of the property and a thorough examination
of all the major aspects and minor details that are visible. There is
some flexibility as you can request the surveyor to concentrate on
specific features of the property. It is most suitable for larger,
older homes with more potential for problems and those more than 75
years old, property over three stories in height, buildings of unusual
construction (such as thatched, timber etc.), or if you plan to
extend, convert or renovate the property.
