Jargon Buster
A glossary of commonly used consumer finance terms
Within all aspects of consumer finance: Mortgages, Loans, Credit Cards or Savings the use of jargon and accepted industry terms is widespread. Our comprehensive jargon buster explains what those terms mean in an effort to demystify consumer finance.
Balance
The total amount of debt on a credit card.
Balance Transfer
Moving the amount owed on one credit card to another credit card provider normally to take advantage of a special offer on the interest rate.
Bankers Draft
A secure cheque provided by a bank. The bank will charge for providing this service.
Bank Rate
The basic interest rate set by the Monetary Policy Committee of the Bank of England.
Base Rate (BBR)
Also known at the Bank of England Base Rate.
The Bank of England Base Rate is the main interest rate for the UK. It is set by the Monetary Policy Committee (MPC) of the Bank of England every month.
Billing Cycle
The time between your last credit card statement and the next credit card statement.
Billing Date
The date on which a credit card statement is produced.
Booking Fees (arrangement, reservation and product fees)
A fee charged by a lender to secure mortgage funds, payable at the time the loan application is submitted and normally applies only to special offer loans, such as fixed or capped rates.
Bridging Loan
Short-term loan used as coverage when buying a new property before selling an existing one.
Broker
A third party who searches for the best available financial products on behalf of an individual.
Broker Fee
A fee charged by an intermediary to the applicant or the lender or both for finding, recommending and administrating the purchase of a financial product.
Building Societies Association (BSA)
This organisation is the trade body for all UK building societies. There are 59 building societies in the UK. Building societies differ from banks in that they are mutual organisations which means that they are owned by the members who borrow and save with them.
Building Society
Building societies are mutual organisations owned by their members and regulated by the Buildings Societies Act.
Buildings Insurance
An essential insurance policy which covers the structure of the building.
Buy to Let Mortgage
A mortgage for a property which the owner intends to rent out privately to tenants. See commercial mortgages.