Bankruptcy: The process of making an individual bankrupt. Bankruptcy can be discharged within 12 months, but remains on a credit file for 7 years, limiting the ability to borrow.
Bank Rate: The basic interest rate set by the Monetary Policy Committee of the Bank of England.
Base Rate (BBR): The Bank of England Base Rate is the base interest rate for the UK. It is set by the Monetary Policy Committee (MPC) of the Bank of England every month. This rate will determine all the different interest rates in the economy. If the MPC increase base rates, mortgage lenders usually increase their lending rates by a similar amount. Website: www.bankofengland.co.uk
Basis Point: A basis point is 1/100th of 1%. For example the difference between a loan at .00% and a mortgage at 8.12% is 12 basis points.
Benefit Period: Time frame over which the interest rate of a mortgage is discounted.
Booking Fees: The same as arrangement, reservation and product fees. A fee charged by a lender, payable at the time the loan application is submitted and normally applies only to special offer loans, such as fixed or capped rates.
Boom and Bust: This relates to rapid changes in the economy. During a boom period property prices increase rapidly helping the economy to grow fast. This, however, can cause inflation. If interest rates then rise to tackle inflation, then the economy will slow down causing a fall in property prices.
Breach of Contract: Failure to comply with the term and conditions of a contract.
Breach of Covenant: Failure to comply with a legal agreement.
Bridging Loan: Short-term loan used as temporary security when buying a new property before selling an existing one.
Broker: A third party who endeavours to locate a competitive financial or other package. Brokers could be affiliated with a company, or they may be independent.
Broker Fee: A fee levied on a borrower by an intermediary for negotiating a loan. If a loan has not completed within six months of the date of application, the maximum fee that a broker can retain is £300, under Consumer Credit Act legislation.
Building Societies Association (BSA): The BSA is the trade body for all UK building societies. Building societies differ from banks in that they are mutual organisations, which means that most of their customers are members and have rights to receive information, vote on important decisions and attend society meetings. Website: http://www.bsa.org.uk/
Building Society: A building societies is a mutual organisations owned by its members and regulated by the Buildings Societies Act.
Buildings Insurance: An insurance policy which covers the structure of the building..
Buy to Let Mortgage: A mortgage for a property which the owner intends to rent out privately to tenants.