Glossary of mortgage terms - B
Not sure what a MIG is or what fixed-rate and leasehold all means? We can help you through the maze of jargon with our easy-to-use mortgage glossary. Find the words you want using the buttons below.
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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 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.
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.
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.
Why Avocado?
Avocado Mortgages can help power charge your finances, releasing equity tied up in your property.
- To treat our customers fairly and with honesty and integrity in a courteous manner at all times.
- To offer our professional yet personal service to our customers in a speedy manner.
- To endeavour to recommend the most suitable lenders and products to satisfy customer needs, using the whole market place.
- To provide our customers with all the relevant information required during the process and to ensure that customers fully understand the information.
- To endeavour to make prompt contact with new clients to start our advice process as soon as possible, ensuring that the client is able to speak to an experienced advisor.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
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