CAT Standard Mortgage
A CAT standard mortgage is a mortgage that adheres to a set of clearly defined standards that have been set out by the government in order to make the mortgage market less confusing for consumers. The aim is for greater transparency in mortgage products and the standard is meant to encourage mortgage lenders to market their products more clearly and to avoid using hidden charges. Whether a lender uses the CAT standard for mortgages is up to them and it does not mean that mortgages not covered by CAT standards are inferior products.
CAT stands for charges, access and terms and some of the standards relating to these are as follows:
Charges
Interest to be calculated daily
All regular and overpayments to be credited immediately
You must not be charged separately for your mortgage indemnity guarantee
All fees must be disclosed before the loan is taken out
Brokers arranging CAT standard mortgages for you should not charge fees
Access
Any customer may apply for a CAT standard Mortgage
You may make early repayments whenever you wish
If the lender is happy with your change of property you can carry on with your CAT standard mortgage in your new home
You choose which day of the month to make your regular payments on
Terms
If the lender can no longer continue your CAT standard mortgage and wants to change the mortgage terms they must give 6 months notice
All advertising for CAT standard mortgages must be clear
You dont need to purchase any other financial product to qualify for a CAT standard mortgage
Summary
CAT standard mortgage ensure the terms of the mortgage are to be set out clearly and comprehensively, though it is worth bearing in mind that a non CAT standard mortgage is not necessarily inferior products.
To find out more about CAT standard mortgage and what mortgage would suit your needs fill out the online form and one of our professional mortgage brokers will contact you to discuss your options.
