| Basic earned income |
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| Usually this is an individual?s basic salary. This is the guaranteed element and does not include bonuses, overtime and shift allowance. |
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| Booking fee |
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| Another term to describe a fee which is payable upfront to either source or reserve funds for a mortgage. Usually applicable for fixed or capped rate mortgages. |
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| Broker fee |
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| A fee charged by an adviser to a borrower for locating the most appropriate mortgage for the borrower. |
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| Buildings insurance |
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| All lenders require a property to be insured. It should be insured for the full rebuilding cost including professional fees and such insurance cover is normally a condition of the mortgage. N.B. The full rebuilding cost will normally differ from (and be substantially lower than) the mortgage valuation of the property. |
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| Building society |
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| Building Societies are mutual organisations regulated by the Building Societies Act. This means that their members (those with an account or a mortgage which confers membership rights) actually own the organisation. |
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| Buy to let |
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| This term describes where a property is purchased for the purpose of letting it out to tenants, which will generate an income for the purchaser. |
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| Bank of England |
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| UK's central bank responsible for the regulation of the banking industry, issuing of money and more recently the control of inflation, with the formation of the Monetary Policy Committee under the new Labour government. |
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| Bankruptcy |
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Anyone can go bankrupt, including individual members of a partnership. There are different procedures for dealing with companies and for partnerships themselves. When a bankruptcy order has been made you must:
provide the Official Receiver with a full list of your assets and details of what you owe and to whom;
look after and then hand over your assets to the Official Receiver together with all your books, records, bank statements, insurance policies and other papers relating to your property and financial affairs
tell your trustee about assets and increases in income you obtain during your bankruptcy. (Note: you are legally obliged to inform your trustee of any property which becomes yours during the bankruptcy. Such property includes lump sum cash payments that you may receive, for example redundancy payments or money left in a will);
stop using your bank, building society, credit card and similar accounts straightaway
not obtain credit of ?250 or more from any person without first disclosing the fact that you are bankrupt.
not make payments direct to your creditors. You may also have to go to court and explain why you are in debt. If you do not co-operate, you could be arrested. |
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| Base Rate |
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The minimum rate at which banks are prepared to lend money, altered by the central bank's dealing rates with the discount houses. It forms the benchmark for all other interest rates. |
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| Basic Rate of Tax |
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The basic rate of income tax is set in the annual budget. |
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| Basis Point |
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Unit of measure (usually one hundredth of a percentage point) used to express movements in interest rates, foreign rates or bond yields. |
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| Beneficiary |
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The recipient of the assets subject to a Will or Trust. Essentially the nominated receiver of the benefit from the proceeds of a Will/Trust usually specified in the documentation. |
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| Bonus |
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Additional payment of interest if defined conditions are met, typically if an investment is held for a certain term or if withdrawals are kept under a certain limit. |
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| BSA |
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Building Societies Association. The Trade Association representing interests of member societies, the number of which are reducing as societies convert to banks. |
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| BSC - Building Societies Commission |
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Watchdog or regulatory organisation, answerable to the Treasury, that ensures Building Societies comply with the Building Society Act. |
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| Bank of England |
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UK's central bank responsible for the regulation of the banking industry, issuing of money and more recently the control of inflation, with the formation of the Monetary Policy Committee under the new Labour government. |
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