bank
- an institution authorised by the Bank of England under the Banking
Act 1987.
base rate
- introduced by banks following the abolition of Minimum Lending
Rate by Geoffrey Howe, the then Chancellor of the Exchequer, in
1981.
Commonly used to refer to the mortgage lender's standard variable
rate. The lenders SVR, although based on the base rate, is usually
higher.
basic annual income
- the amount of money earned that is guaranteed regardless of the
individual or the company performance. See other
income
bankrupt
- an individual who has been declared bankrupt in accordance with
the Insolvency Act.
A supervisor is appointed to receive a bankrupt person's earnings.
The bankrupt is permitted to receive an allowance on which to live
with the balance being reserved for the benefit of his or her creditors.
A bankrupt person is not permitted to hold a bank account or apply
for credit in excess of £250 without the court's permission.
bankruptcy: discharge from
- After a period, normally three years, the debtor is discharged
from bankruptcy, his debt being treated as paid. A discharged bankrupt
is likely, however, to experience severe difficulties in borrowing
money. Credit reference agencies will normally identify former bankrupts
for 15 years after their discharge.
booking fee
- fee charged by a lender to secure mortgage funds, payable at the
time the application is submitted. Normally applies to special offer
loans, such as fixed or capped rates.
broker fee
- fee charged by an intermediary to the applicant
for negotiating a loan.
building society
- an institution regulated by the Building Societies Act.
Building Societies are mutual organisations owned by their members
and are restricted as to the amount of their funds which they are
allowed to raise from the money markets.
In addition, the Building Societies Commission lays down restrictions
on their lending criteria. Thus building societies are less able
to help with certain categories of loans than are banks.
buildings insurance
- insurance covering the structure of the building which you must
have.
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.
As a general rule of thumb any item which cannot be taken away
by the owner is covered by the buildings insurance, anything which
can be removed should be covered by the contents
insurance. This is only a guideline and any doubts should be
raised with insurers as this definition can prove problematic in
some instances, such as fitted carpets.
