Cat standard mortgage

Cat Standard Mortgages

A CAT standard mortgage meets the requirements set up by the government for fair Charges, easy Access and decent Terms.

To achieve the government aim of a mortgage CAT standard:

All fees must be explained from the beginning
Interest must be calculated on a daily basis
The interest rate must be no higher than 2% above the Bank of England rate
No early repayment charges for variable rate mortgages
Repayment charges on fixed or capped mortgages can only be charged a) during the lower rate period b) at no more than 1% of the loan for the remaining years
Maximum £150 arrangement fee if the mortgage is capped or fixed rate
No separate charge for mortgage indemnity insurance
The mortgage can move with you to another property
You can choose the day of the month you want to make payments
You can repay earlier if you wish
No products can be tied in to the mortgage (such as buildings insurance)

The terms must be fair, clear and not mislead