Base Rate

The UK’s core interest rate, set by the Bank of England. The lender’s Standard Variable Rate (SVR) is higher than the Base Rate, but is often adjusted by reference to it.

Bonding Scheme

An agreement by members of a profession or trade to establish a central compensation fund which consumers can draw on in cases of fraud or insolvency.

Buildings Insurance

Insurance cover which protects the holder against damage to the property itself (although it can be linked with contents insurance in a combined policy). The amount insured may vary from the purchase price/valuation of the property depending on the type of location of the property. The valuer will usually provide a rebuild cost for insurance purposes.

Business Buy to Let

The practice of buying a house or flat for investment purposes. Income is provided by the tenants’ rent, and capital growth (if any) by the property’s increasing resale value.