• Mortgages
  • Mortgage Quotes
• Life Insurance
  • Level Life Insurance
  • Decreasing Life Assurance
  • Income Protection
  • Critical Illness
• About Us
  • Find out more about us
• Glossary
  • Glossary
• Dictionary
  • Dictionary
• Contact Us
  • Get in touch

Glossary - C

• A
• B
• C
• D
• E
• F
• G
• H
• I
• J
• K
• L
• M
• N
• O
• P
• Q
• R
• S
• T
• U
• V
• W
• X
• Y
• Z

CAB

Citizens' Advice Bureau. A voluntary service provided in most towns which offers free advice to individuals on financial and other matters. A very useful starting point for anyone experiencing credit problems.

Cancellation Clause

This is a clause in any loan agreement that allows a lender to ask for the outstanding balance at any time.

Cap And Collar

See capped rate.

Capital Raising

This is remortgaging a property and borrowing extra money to make home improvements or buy a second home for example.The capital raised is the amount left over after repayment of the original loan is deducted from the new loan.

Capped Rates

The interest rate will not exceed a certain value during a certain period of time, although it will fluctuate above and below the current level. Some capped products will have a top amount and a floor between which the rate payable may move; such loans may be known as cap and collar mortgages.

Cash Apr

The APR charged by credit cards for cash advances, which is often higher than the purchase APR. The cash APR also includes the cash advance handling fee as part of the calculations.

Cash Back Mortgages

This mortgage provides you with a single lump sum of cash immediately on completion. The amount of cash is usually calculated as a percentage of the overall loan amount, though it can be a set figure. The percentage of the loan that is given as cash back can be as high as 5%, though sometimes this can be lower.

Cash Buyer

People who do not need a mortgage in order to buy a property and who do not have a property to sell. Cash Deficit top This is money still owed to the creditor at the end of the repayment period of an interest only mortgage.

Caveat

This is a formal notice asking a court to suspend action until the party which filed the challenge can be heard. Caveat Emptor top This is the Latin for "let the buyer beware." A legal and moral obligation on buyers of goods to ensure that they are not stolen, and in the case of "sold as seen" goods, that they are of a reasonable quality.

CC

See Competition Commission.

CCA

The act of legislation to clearly define the rules regarding money lending.

CCJ

If payments are not made on a financial agreement, a magistrate may issue a county court judgment (CCJ) in the name of that individual. This greatly affects your credit rating.

Centralised Lender

A term applied to mortgage lenders, but not to high street banks and building societies, who mainly operate wholly from a head office site.

Certificate Of Deposit

Certificates from a financial body declaring you have the funds available to pay the deposit. Charge top This is the security the lender relies on when granting credit Chartered Institute Of Arbitrators top When complaints relating to surveyors cannot be rectified directly, the surveyor in question should be referred here. It is the official body of surveyors who are members of the RICS and ISVA.

Circumstances

The conditions, such as age, employment, income and relationship status, which a lender may use to decide an individual's creditworthiness.

Circumstantial Lending

Lending process to customers whose personal circumstances are not ideal, due to lower income, debt problems or other issues.

CML

Council of Mortgage Lenders.

Code Of Practice

Principles and procedures individual employees of a body are expected to follow. This will cover such issues as client confidentiality and courtesy towards customers.

Collection

Steps taken by a lender to bring a person's payments back up to date.

COML

See Council of Mortgage Lenders.

Commercial Mortgage

This is the loan granted for commercial purposes, and is usually secured against commercial property, though residential property may be used. With a commercial mortgage there is a higher rate of interest, as it is a higher degree of risk for the lender.

Commission

A percentage of the overall selling price that is received by the selling party when acting on someone else's behalf.

Common Law Partner

A partner who cohabits with his or her partner, and who can gain some financial benefits from such partner, without actually being legally married.

Comparison Table

A table giving figures relating between leading financial or other products. This demonstrates which are the best performers under certain criteria. Remember though that the best way to evaluate your own options may be to draw up your own comparison table.

Completion

This is the moment when all the legal formalities of the purchase or mortgage are finalised and the funds are drawn down from the lender, and usually into the solicitors account.

Completion Date

The day for completion of a sale of a house, when keys are actually transferred. Compound Interest top Interest on the interest.

Compulsory Products

Conditions that must be adhered to by the borrower as a condition of the loan. An example of this income payment protection.

Conclusion Of Missives

Scottish term for exchanging contracts.

Conditional Insurance

This is an compulsory insurance policy to be taken out with the loan . It must usually be taken out via the lender's agency. See compulsory products.

Conservation Area

Historic areas of towns in which properties are protected by the local authority. Planning regulations are extremely strict in conservation areas, although property values are usually much higher due to the attractiveness of the Architecture.

Constant Net Payment

This is a form of capital and interest repayment mortgage The monthly repayments remain the same throughout the term.

Consumer Credit Act (CCA)

Legislation covering the provision of loans to individuals. A regulated loan is one that does not exceed £15,000 and would not include a mortgage loan of over £15,000 and so the lenders set a minimum loan of £15,001 to ensure it is not treated as a regulated loan.

Contents Insurance

Insurance of property within your home i.e. furniture, clothing, personal possessions etc. Lenders will often be keen to offer contents insurance to borrowers although it is not essential that you should have it from them, or at all. Some policies offer a wider, all-risks wording, whereas others offer much lower premiums for more basic cover. Make sure that when taking out this policy the small print an exclusions are examined.

Contract Work

Employers sometimes offer employment under fixed-term contracts as they have a higher control over staffing costs and are able to limit their redundancy payment liabilities.

Contractual Lien

This is a lender having a right to repossess a property if payments are not kept up on the mortgage or other loan secured on it.

Converted Flat

A flat that has been converted from part of a larger property.

Conveyancing

Legal documentation relating to the transfer of ownership of a property.

Conveyancing Fee

The fee charge by a solicitor or licensed conveyancer for arranging the legal work in transferring the ownership of a property. The total cost of the legal work also includes stamp duty, land registry fees and disbursements. See fee, arrangement fee, fees added to loan, booking fee, land registry fees, IGP, stamp duty and valuation fee.

Convictions

A person's criminal records. Some lenders may look at convictions when making a lending decision. A conviction for fraud would make an individual a particularly high risk to many banks and building societies, whereas speeding or road traffic offences will affect motor insurance policies.

Co-Ownership

Sometimes called Shared ownership. A way of purchasing property in partnership with a housing association or council, where the borrower purchases part of the property and rents the rest. The minimum purchase amount is 25% of the property value, and the rest may be bought in blocks of 25%. This arrangement is ideal for those whose circumstances prevent them from being 100% homeowners.

Council Tax

Local authority annual fee to cover essential services such as road maintenance, rubbish collection and leisure centres. Council tax is separated into bands based on the value of the property.

County Court Fee

This is a fee for when a lender provides information to solicitors regarding county court rules when payments are in arrears.

County Court judgement (CCJ)

This is a judgement for debt in the county court. This debt does not appear in the credit register if this debt is settled within 30 days of the date of the judgement. Only a few lenders are willing to offer loans to anyone with an outstanding or unsettled judgement, and even if the judgement has been settled many lenders are likely to refuse a mortgage or other credit application.

Cover

The risk taken by an insurance policy that protects against perils such as third party, fire and theft.

Credit

The process whereby a financial body lends money to an individual or a business entity for the purpose of house buying etc

Credit Agency

A company used by a lender to establish the financial situation of an individual or company.

Credit Adverse

A person who has been made bankrupt or has outstanding county court judgements.

Credit Check

An enquiry made on the credit history of an applicant, normally by reference to one of the major credit agencies such as Equifax or Experian.

Credit Checking Agency

The service used by lenders to establish a level of risk involved in lending money.

Credit File

A recorded history of an individual or companies credit held by a credit reference agency. You can inspect your own credit file by writing to the agencies.

Credit Limit

The maximum amount of borrowing allowed on a credit card at any one time.

Credit Period

The timespan for which the lender will provide credit.

Credit Rating

Rating used to establish risk involved in lending money. This is used in conjunction with credit history and financial status.

Credit Reference Agency

A company that holds credit information on a file.

Credit Scoring

The way of assessing a credit application, carried out by scoring the answers given on that application. It is important that there are no missing answers on an application otherwise the result for the question becomes a negative.

Credit Worthy

Someone who is deemed by a lender to be a low risk to lend to. Different institutions use different criteria when evaluating such risk.

Creditor

Company or person to whom a debt is owed.

Critical

Something essential. Explanation of illness which is life threatening. See critical illness insurance.

Critical Illness Insurance

Insurance cover for major illness, diseases and other potentially fatal medical conditions. Current Service (Employment) top The time that you have spent with your current employer.

• A
• B
• C
• D
• E
• F
• G
• H
• I
• J
• K
• L
• M
• N
• O
• P
• Q
• R
• S
• T
• U
• V
• W
• X
• Y
• Z