The Sunday Mail
Base rate — set by the Bank of England’s Monetary Policy Committee (MPC), many financial institutions use the base rate to set the interest rates they charge customers. When the base rate rises expect savings and mortgage rates to increase — and vice versa.
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Bitcoin — the most popular cryptocurrency, a digital currency without a central bank — such as the RBZ — behind it. It works in the same way as a traditional currency as you can make payments and transfer money. However, the value of Bitcoin can rise and fall unpredictably.
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Capital gains tax — this tax is levied when you sell an asset that has increased in value since you bought it. You only pay tax on the gain itself, i.e. the amount its value has increased. It applies to most personal possessions worth £6,000 or more (apart from your car), property that isn’t your main home and shares not held within an Isa or tax-free account.
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Equity release — also known as a lifetime mortgage, this allows you to unlock cash from your home in retirement. However, this is generally an expensive way of accessing cash as interest rates are higher than traditional mortgages.
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Freehold — if you are a freeholder you own both the property and the land it stands on. Detached houses are generally sold on a freehold basis, whereas flats are leasehold.
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Leasehold — if you own a leasehold property you have a legal agreement with the freeholder which tells you how long you own the property for. You will generally pay a ground rent to the freeholder and other service charges may apply. Most flats are sold on a leasehold basis and the freeholder is usually responsible for maintaining the communal areas of the building.
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Bear Market — A market condition where securities/shares are falling and investors have a pessimistic outlook on the market as a whole. A downturn of 20 percent or more for more than two months within multiple indexes like the Industrials Index or the Mining Index is considered the start of a bear market.
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Bull Market — Opposite of bear market. A market condition where securities rise faster than historic averages; usually from an economic recovery, boom or spike in investor confidence (psychological).
