The Glossary

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The Letter B
This section provides information on terms and phrases beginning with the letter B
At the grabber we know finance is full of confusing terms and phrases, and so on this page we explain:
Bad Credit | Base Rate | Black Listed | Buildings Insurance | Buy to Let

Bad Credit

This is a term used to describe a low rating in credit scoring due to a poor credit history. County court judgements, mortgage defaults, loan arrears or other credit debt repayment problems lay on the persons financial record and lead to a rating of bad credit. Credit scoring is used by UK lenders to determine the level of credit risk you are before agreeing to lend fresh finance. Visitors can find credit to suit their score even if it is a bad credit rating. Your credit history and suitability will be on a national credit database but it is up to individual lenders whether the risk is acceptable. There are loan providers online that specialise in lending to people in this situation.
If you have a problem credit rating you could use our application forms to apply for finance and save yourself hours surfing online or trawling around the shops.

Base Rate

The base rate is set by the Bank of England and can alter quite regularly. Any changes to the rate are announced by the Bank of England's Monetary Policy Committee, which meets monthly. This is then the standard base interest rate used for most UK financial products. The lenders will then add their interest rate on the top of this, which is their charge for lending the finance to their customers.
How the base rate fluctuations effects different types of finance repayments depends on what sort of product individual customers have and if any changes are passed on to their customers.

Black Listed

Black listed is when a persons credit rating is so low they are automatically considered at risk of non payment. Credit histories are stored on databases by credit reference companies, lenders check these to find out credit status before agreeing to lend any fresh finance. If there is a severe credit history the record will be black listed to note a risk to lenders. Some lenders will still lend on this but the interest rate will be high until the credit status is improved.
The panel of independent brokers our forms are passed on to might be able to get you credit, all you have to do is fill in one of the application forms. Using one of our forms to apply for finance could save yourself hours surfing online.

Buildings Insurance

Buildings insurance is insurance cover that usually covers the properties building itself, together with any permanent fixtures and fittings against damage. UK mortgage providers will insist that the property has buildings insurance cover as part of their mortgage arrangement. This will then cover their investment in the property.
Standard buildings insurance should cover the property against damage caused by fire, storm, flood and subsidence. Some insurers will cover against less common occurrences as well usually for an extra charge.

Buy to Let

Buy to let is a term used to describe the purchasing of property solely to rent out to tenants. This is also a method used to invest money in property. Due to the stock markets poor performance over recent years more prosperous consumers are choosing to invest their capital in the housing market. Lenders will require that a particular product is taken if property is being purchased to then let out to tenants, this may mean differing interest rates and conditions applying to the buy to let mortgage.
The Grabber has a section on property investment for those who are interested.

Got a piece of jargon you want explaining, it's time to let The Grabber loose.

Associated Pages
bad credit first mortgage | bad credit remortgage | best buy remortgage | buy to let mortgages