Jargon Buster

The world of Finance is full of buzz words and Jargon. In this section I'll translate a whole rack of finance terms so you won't get caught out.

Go direct to: A-B | C-D | E-G | H-L | M-P | Q-S | T-Z | Jargon Index

This is my Index of Mortgage and Loan terms beginning with the letters A to B.

Adverse Credit
Adverse Credit is another word for Bad Credit or Credit Problems. This label is given to someone who has had problems in the past, usually meaning they have failed to repay a debt. When used to describe: Adverse Credit Mortgages or Adverse Credit Loans they mean Mortgages or Loans for people with Credit Problems or Poor Credit Rating.
APR
This is the rate of interest which you pay back when you take out a loan or mortgage. The amount is a percentage of the sum you borrowed, meaning the higher the APR, the more you pay back.
Arrangement Fees
Mortgage lenders sometimes include Arrangement Fees in their rate. This covers any work which was done in arranging your mortgage.
Arrears
Mortgage Arrears is used to describe missed or late mortgage repayments. If you stay in arrears you are likely to end up with a CCJ (County Court Judgment). This can also be described as defaulting on your mortgage or Mortgage Defaults
Bad Credit
This another term for describing adverse credit. Failing to repay loans or mortgages will give you bad credit. Some reasons for Bad Credit are CCJs or Arrears.
Bank of England Base Rate
This is set by the Bank of England and can alter quite regularly. Lenders then put their interest rate on top and depending if you have a capped rate or variable rate your repayments will go up or down. Any changes to the rate are announced by the Bank of England's Monetary Policy Committee.
Black Listed
If your credit history is extremely bad, then you may be Black Listed. If you are black listed on a database then you will be deemed very high-risk. Being Black Listed does not mean you will find it impossible to obtain finance, but any rate you are offered will be very high.
Buildings Insurance
Mortgage lenders may insist that your home has Buildings Insurance. Buildings Insurance covers your home against damage, for example from fire or floods.
Buy to Let
If you are intending to rent out a property which you are buying, then you will need a buy to let mortgage.