glossary of terms
Balance transfer
Moving the outstanding balance (debt) on one or more credit cards to another card usually to obtain a lower overall interest rate
Bank
A business that holds money for its clients, lends money at interest and trades generally in money
Bank Giro Credit (BGC)
A one-off cash or cheque payment to an organisation or individual. Processing a payment made using a Bank Giro Credit takes three working days
Bankers' draft
A guaranteed payment delivered to your home address by registered post
Bankruptcy
A legal declaration of inability to pay debts
Base Rate
The base interest rate set by the Bank of England upon which all other lending or savings interest rates are based
BBA
British Bankers Association. This is the trade organisation of the banks
BEBR
Bank of England Base Rate. The base interest rate set by the Bank of England upon which all other lending or savings interest rates are based
Beneficiary
The person who is or will be the ultimate recipient of a benefit. Examples could be someone named to receive a legacy under a Will or an individual nominated to receive benefit from a trust fund
Bonds
Otherwise known as fixed-interest securities, bonds are basically IOUs which are issued by governments, financial institutions and companies. Generally, the issuer undertakes to pay investors a fixed rate of interest for a fixed number of years (e.g. 7% for 5 years). The fact that the interest rate is fixed makes bonds attractive because their return is so predictable. Bonds are traded in open markets, in the same way as shares. (See also Gilts)
Bridging Loan
If a house or purchase arrangement involves the sale of one property and the purchase of another, it will normally be most convenient if the two deals are concluded simultaneously. If this is not possible and additional funding may be necessary to conclude the purchase of the second property, it is known as the "bridging loan".
Broker
An agent who brings two parties together, enabling them to enter into a contract to which he is not a principal. His remuneration consists of a brokerage, which is usually calculated as a percentage of the sum involved in the contract but may be fixed according to a tariff. Brokers are used because they have specialized knowledge of certain markets or to conceal the identity of a principal, in addition to introducing buyers to sellers.
BSA
Building Societies' Association. This is the trade organisation of the building societies
Building Campaign
A drive to raise funds for construction or renovation of buildings
Building Society
A financial institution owned by its members (rather than by shareholders) which pays interest on deposits and lends money on the security of property to enable members to buy their own homes. The distinction between building societies and banks (which have historically offered a much wider range of financial services but often at a higher cost) is now much reduced and the main difference is often the question of ownership
Buy-to-let
This is when you buy a property to rent it out rather than live in
