Mortgage Terms C

 

It is provided for information only.

A to Z of mortgage terms

C
Capital

The balance of your mortgage loan excluding costs and interest outstanding.

CAT standard
Stands for Charges, Access, and Terms – which have to be low, easy and fair respectively. These standards were introduced by the Government for mortgages to help borrowers, especially first-time buyers.

Closing administration charge
A charge made by the lender to cover administration costs when a mortgage is repaid.

Collateral / security
The property. The lender can take possession and sell it if the borrower does not keep up the mortgage payments.

Completion
1. The final legal transfer of ownership of the property – when the property becomes yours.
2. The start of the mortgage. This is also known as ‘drawdown’.

Contents insurance
Cover for the contents of your home – including furniture, appliances and personal items – against damage and theft.

Contract
The written agreement between the seller and the buyer of a property to transfer ownership.

Contract race
Where the seller has received two or more offers on the property and will sell to the buyer who is ready to exchange contracts first.

Conveyancer
Solicitor or licensed conveyancer who deals with the legal aspects of buying or selling land or property.

Conveyancing
The legal work involved in the sale and purchase of land or property.