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B.


Bad Credit.

Bad credit is something that a person will have if they fail to make the required repayments to creditors.

A bad credit history is something that a person will have if they have failed to make the required repayments to creditors in the past. Often items of credit that are registered as defaults or ccjs can remain on your credit history for years.

A bad credit rating will be obtained by a person who fails to make repayments to creditors regularly and on time. See Credit Rating for further explanation.

Something a self employed person may be asked to produce to a lender if they are using accounts to proove their income. A balance sheet provides a snapshot of everything the company owes and owns at the end of the financial year in question.

An institution which takes deposits of money and provides a person or company with financial services. It pays interest on deposits and makes loans and charges interest on them.

This term is used to describe a payment, due from the creditor to the bank, that has been missed or made incorrectly.

A reference sought from a bank by a company or individual regarding the credit worthiness of another company or individual in order to assess whether or not credit trading terms should be offered. Also known as a BSQ (see below).

This is the term used for a person who is declared insolvent by the County Court under the provisions of the Insolvency Act 1986. A bankruptcy request can be initiated by the individual or by the creditors. It usually remains in force for three years.

A rate on interest set by the Bank of England. This is the lowest rate that any bank will charge interest.

An agency set up within the DSS (Department of Social Services) to assess individual circumstances and award benefits to individuals.

Bonuses are sometimes paid by companies to employees. If regular, we can often use these to support your income when applying for a loan.

A body that is able to make products available to you. Some brokers are able to access products from various companies and can therefore compare criteria easily for you. There are many types of brokers, for example a loans broker will act as an intermediary between the borrower and the lender.

Term used for a questionnaire presented to a mortgage lender (Building Society or Bank) which contains questions relevant to a prospective client and their mortgage repayment history etc.

Mutual non-profit-making institutions set up to lend money to their members for house purchase. Building Societies are owned by their members, and their members are entitled to their profits and benefits. Many Building Societies have demutualised and effectively turned themselves into profit making banks.

Insurance which covers the policyholder against certain building losses or damages which may occur. The insurer normally states a maximum insured value for the cost of rebuilding the property, and it is up to the policyholder to ensure that this is sufficient coverage.