A to Z of Finance (Jargon Buster) - The Letter B

The world of Finance is full of buzz words and Jargon. In this section I'll translate a whole range of finance terms so you won't get caught out.

Index A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Bad Credit

This is another term used to describe Credit Problems due to an adverse credit history. CCJ's, Mortgage Arrears and other credit debt repayment problems leads to a Bad Credit Rating. Bad Credit is more of an American term the UK commonly use the term Poor Credit. Bad Credit can be used to describe mortgages or loans: Bad Credit Mortgages or Bad Credit Loans, this means loans or morgages available for people with a poor credit rating: Poor Credit History Loans or Poor credit Mortgage.

Bank of England Base Rate

This is set by the Bank of England interest rate and it can alter frequently. Lenders add their own interest rate on top of the Bank of England Base Rate. Depending on the type of mortgage you have, your repayments can rise and fall as the base rate changes. Any changes to the rate are announced by the Bank of England's Monetary Policy Committee.

Black Listed

A persons credit history isl be stored on databases held by credit reference companies. A lender will check these databases to find out about your credit history. If you have a very bad credit history your record will be black listed to note 'severe risk'. Some lenders will still lend to people with bad credit ratings but the interest rate they will charge be high, at least until you can improve your credit history.

Buildings Insurance

All mortgage lenders will insist that the property has Buildings Insurance. This covers their investment in your property but most of all, it covers your property against fire, flood and subsidence etc.

Buy to Let

This is a method used to invest money in property. You will need a Buy to Let Mortgage if you want to rent or let the property you wish to buy.