Jargon Buster
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 ammend your repayments.
Balance outstanding
The amount of loan owed at one time.
Balloon loan
A mortgage in which monthly installments are not large
enough to repay the loan by the end of the term. As a
result, the final payment due is the lump sum of the remaining
principal.
Balloon payment
The final lump sum payment due at the end of a balloon
loan.
Bank of England base rate
The prevailing rate of interest set by the Bank of England
which all lenders generally follow.
Bankruptcy
A proceeding in which an insolvent debtor can obtain relief
from payment of certain obligations. Bankruptcies remain
on a credit record for seven years and can severely limit
a person's ability to borrow.
Basis point
A basis point is one one-hundredth of one percentage point.
For example, the difference between a loan at 8.25 percent
and a mortgage at 8.37 percent is 12 basis points.
BBA - British Bankers Association
This is the trade organisation of the banks.
Before-tax income
Total income before taxes are deducted.
Benefit period
A time period over which the interest rate of a loan
is discounted, fixed or capped, for example.
Biweekly loan
A loan that requires payments every two weeks and helps
repay the loan over a shorter term.
Breach of contract
The failure to perform provisions of a contract without
a legal excuse.
Breach of covenant
The failure to obey a legal agreement. Breach of warranty
A seller's inability to pass clear title to a buyer.
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.
Broker
Brokers and other intermediaries attempt to arrange suitable
financial products or policies for you. They can be fully
independent, part of a network that uses a panel of providers,
or tied to certain institutions in which case they can
only sell their products.
Brokerage
The act of bringing together two or more parties in exchange
for a fee or commission.
BSA - Building Societies Association
This is the trade organisation of the building societies.
Building society
Building societies are mutually owned organisations,
which exist not for profit but for the benefit of the
members. The idea of this is that the society is able
to offer cheaper products to its members, though this
is not always the case.
Buildings and contents insurance
Buildings and contents insurance can often be purchased
together protecting both the building structure and your
belongings and possessions inside.
Buildings insurance
Buildings insurance is designed to give you financial
protection for the basic structure of your home, such
as the walls, roof and foundations. This usually includes
any external parts of the property such as your shed,
garage, conservatory or greenhouse.
