Bailiff - Buy-to-Let Mortgage

Bailiff

An official representative of the courts, who may call round to repossess your possessions or house if you cannot keep up on your mortgage repayments and fail to reach an agreement with your lender to ammend your repayments.

Balance Breakdown

This is a fee that can be charged by your lender for a month-by-month breakdown of your account balance, over and above the information contained in your Annual Statement.

Balance Sheet

Forms part of the annual report and is the statement of a value for a company's assets and liabilities and the end of the financial year (balance sheet date). It shows a company's financing through external debt, profit generation and the issuing of share capital.

Balloon Mortgage

A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.

Balloon Payment

The final lump sum payment due at the end of a balloon mortgage.

Bankruptcy Charge

This is an investigation carried out by the Land Charges Registry to check if a purchaser is or has ever been bankrupt. Most mortgage lenders will insist on this search being carried out and it usually carries a small charge.

Base Rate

Every month the Monetary Policy Committee sets the Bank of England Base Rate, to which all mortgage rates are linked either directly, as Tracker mortgages, or indirectly, in all other cases.

Basic Valuation

This is carried out for the purposes of mortgage and is prepared for the lender. A survey will also help you to find out independently whether the price is reasonable. Your mortgage lender will almost certainly insist on a basic valuation to make sure that the property is worth the amount you are paying for it. They want to ensure that you will be able to sell it again and therefore that it is a safe investment. Although it is often referred to as a survey, it doesn't go into nearly as much detail as a homebyuyer or full survey would do.

Basis Point

A basis point is one one-hundredth of one percentage point. For example, the difference between a loan at 5.15 percent and a mortgage at 5.39 percent is 24 basis points.

BBA British Bankers Association

This is the trade organisation of the banks.

Benefit Period

A time period over which the interest rate of a loan is discounted, fixed or capped, for example.

Biweekly Mortgage

A mortgage that requires payments every two weeks and helps repay the loan over a shorter term.

Blanket Insurance Policy

A policy that covers more than one person or piece of property.

Blanket Mortgage

A mortgage that covers more than one property owned by the same borrower.

Bonuses

Payments life assurance companies add to a 'with-profits' endowment. Usually made annually, possibly with a final (terminal) bonus when the endowment comes to the end of its term. Bonuses aren't guaranteed and the amount awarded can change each year.

Booking Fee

This fee may be charged on specific products and is either payable in advance, added to the loan or deducted from the advance on completion. It is normally payable in order to reserve funds when a product is likely to sell out quickly.

Boundaries

These are the areas around a property which identify the start and end of the land and ownership.

Breach of Contract

The failure to perform provisions of a contract without a legal excuse.

Breach of Covenant

The failure to obey a legal agreement. Breach of warranty A seller's inability to pass clear title to a buyer.

Bridging Loan

This is a short term loan provided by a bank or building society which covers you if you need to pay for your next home, while still waiting for the money to come through from the sale of your current home. If you do require one of these, you must ensure that the funds to repay the loan will be in place when the loan period expires.

Broker

Brokers and other intermediaries attempt to arrange suitable financial products or policies for you. They can be fully independent, part of a network that uses a panel of providers, or tied to certain institutions in which case they can only sell their products.

Building Society

Building societies are mutually owned organisations, which exist not for profit but for the benefit of the members. The idea of this is that the society is able to offer cheaper products to its members, though this is not always the case.

Building Survey

Also known as a full survey, this is the fullest and most comprehensive of the options open to the property buyer. It involves an extensive investigation of the property and a thorough examination of all the major aspects and minor details that are visible. There is some flexibility as you can request the surveyor to concentrate on specific features of the property. It is most suitable for larger, older homes with more potential for problems and those more than 75 years old, property over three stories in height, buildings of unusual construction (such as thatched, timber etc.), or if you plan to extend, convert or renovate the property.

Buildings and Contents Insurance

This insurance covers damage to the mortgaged property and/or its contents in a variety of specified scenarios. It is compulsory for all Lenders, and if the Lender's own insurance is not taken they will often charge an administration fee. Some Lenders attach mandatory insurance cover to their most attractive rates, although this is increasingly uncommon.

Buildings Insurance

Buildings insurance is designed to give you financial protection for the basic structure of your home, such as the walls, roof and foundations. This usually includes any external parts of the property such as your shed, garage, conservatory or greenhouse.

Buy Down Mortgage

A home loan in which the lender receives a premium as an inducement to reduce the interest rate during the early years of the mortgage.

Buy-to-Let Mortgage (BTL)

This is a mortgage for property that will be let by the borrower to other tenants. When Lenders calculate how large a loan the borrower can afford to repay on BTL they do so primarily on the basis of projected rental income, rather than salary income multiples.