Glossary of Terms

We have gathered together on this page, a collection of terms most used in the Mortgage, Financial and Property Services Industries.

If you are searching for the meanings of Mortgage, Financial or Property terms, please click on the initial letter below. A list of terms commencing with that letter will be presented and, hopefully, you will find what you want.

If you cannot find explanations for the terms you require or you believe our description to be inaccurate, please submit your request for an addition or correction. If you have a suggested correction, please make it polite.

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B

Balance
The amount you owe, after taking payments (credits) and any debits into account.
Bank of England Base Rate
The Bank of England 'repurchase' or 'repo' rate which is a main factor influencing interest rates charges by lenders.
Base Rate Tracker
The newest type of mortgage. The interest rate is variable but set at a premium (above) the Bank of England Base Rate for a period or even the term of the mortgage. The biggest advantage of this type of mortgage is that, usually, there is little or no redemption penalty. This also means that interest can be saved on the mortgage without penalty, by overpayments, and these savings can be quite significant.
Booking Fee
A fee paid for the arrangement of a mortgage.
Broker
This term is really an anachronism. Strictly, a broker is an individual or organisation that acts on behalf of its client in searching for the most suitable product to meet a specific need. It also then arranges the 'deal'. The term is generic and can apply to almost any sphere of activity. In the finance industry, the term is largely replaced by the term Advisor, which more closely defines the role.
Broker's Fee
A fee charged by an intermediary or advisor for locating the most appropriate mortgage for the borrower.
BSA
The Building Societies Association - This is the trade organisation of the Building Societies.
Buildings Insurance
Covers the house you are buying against damage - take it out from the day you exchange contracts. It is usual to cover the cost of rebuilding the house.
Buy-to-Let
This is a mortgage designed for people who wish to purchase a property to rent out to others. The ability to repay this type of mortgage is often based on the projected rental income from the property as opposed to the personal income of the borrowers.
Bankruptcy
Bankruptcy
Broker's Fee
The fee paid to the broker (or advisor) for the advice given.