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Balance Transfer
The credit card market-place is highly competitive. You may well find cards in the market that offer rates that are significantly lower than your existing credit card. Indeed, there are several credit cards available that promote interest free periods as introductory offers.
Therefore, if you have an outstanding balance on your existing credit card on which you are paying interest, you may find it worthwhile to compare the costs of your current card with those available in the market. If you find a card that makes your debt less expensive to service you may take out the new credit card and arrange for the outstanding balance on your old card to be transferred to it.
A Bank Draft
(also known as a cashier's cheque, bank check, official check, teller's check, cashier's check or treasurer's check) is a check guaranteed by a bank. They are usually treated as cash since most banks clear them instantly. However, banks are permitted to take back money from a "cleared" check one or two weeks later if subsequent processing finds it to be fraudulent. Because customers believe the checks have been found valid and have been converted to cash in hand, they are readily defrauded by schemes which ask them to part with goods or a portion of the money.
Bank of England
UK's central bank responsible for the regulation of the banking industry, issuing of money and more recently the control of inflation, with the formation of the Monetary Policy Committee under the new Labour government.
Bankruptcy
Anyone can go bankrupt, including individual members of a partnership. There are different procedures for dealing with companies and for partnerships themselves. When a bankruptcy order has been made you must:
- provide the Official Receiver with a full list of your assets and details of what you owe and to whom;
- look after and then hand over your assets to the Official Receiver together with all your books, records, bank statements, insurance policies and other papers relating to your property and financial affairs
- tell your trustee about assets and increases in income you obtain during your bankruptcy. (Note: you are legally obliged to inform your trustee of any property which becomes yours during the bankruptcy. Such property includes lump sum cash payments that you may receive, for example redundancy payments or money left in a will);
- stop using your bank, building society, credit card and similar accounts straightaway
- not obtain credit of £250 or more from any person without first disclosing the fact that you are bankrupt.
- not make payments direct to your creditors. You may also have to go to court and explain why you are in debt. If you do not co-operate, you could be arrested.
Base Rate
The minimum rate at which banks are prepared to lend money, altered by the central bank's dealing rates with the discount houses. It forms the benchmark for all other interest rates.
Basic Rate of Tax
The basic rate of income tax is set in the annual budget.
Basis Point
Unit of measure (usually one hundredth of a percentage point) used to express movements in interest rates, foreign rates or bond yields.
Beneficiary
The recipient of the assets subject to a Will or Trust. Essentially the nominated receiver of the benefit from the proceeds of a Will/Trust usually specified in the documentation.
Bonus
Additional payment of interest if defined conditions are met, typically if an investment is held for a certain term or if withdrawals are kept under a certain limit.
BSA
Building Societies Association.The Trade Association representing interests of member societies, the number of which are reducing as societies convert to banks.
BSC - Building Societies Commission
Watchdog or regulatory organisation, answerable to the Treasury, that ensures Building Societies comply with the Building Society Act.
Buy to Let
A term used to describe the purchase of a residential property for the sole purpose of letting the property to a tenant. While some lenders will not provide mortgage finance for this purpose a number do specialise in this niche area of the market. The details of these lenders and the terms on which they will grant a mortgage can be found in the Buy to Let section.
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