Glossary of Terms

We have gathered together on this page, a collection of the terms most often used in the Mortgage, Financial and Property Services Industries.

If you are searching for the meaning of a term. Please click on its initial letter below. A list of terms commencing with that letter will be presented to you. Hopefully, you will find the term you require.

If you cannot find an explanation for the term you require or you believe our description to be inaccurate, please submit your request for an addition or correction. If you have a suggested correction, please make it polite.

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Credit Search

This is a check that your lender will carry out to determine whether you have any County Court Judgements or have a record of not paying loans, credit cards and bills.

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C

Capital
The balance of your mortgage loan excluding costs and interest outstanding.
Capital and Interest
Your monthly payments are partly to pay the interest on the amount you borrowed and partly to pay the outstanding mortgage - also known as a repayment mortgage.
Capped Rate
An interest rate charged for a set period of months or years which fluctuates with the variable rate but there is a maximum (capped) interest rate which it cannot go above.
Cashback
A payment you receive when you take out a mortgage. It may be a fixed amount or a percentage of the actual amount of the mortgage.
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.
CCJ
A County Court Judgement. This relates to a decision made in the County Court which can be for not paying a debt. Once the debt is paid the CCJ is satisfied and a note is put on your credit file to reflect this.
Closing Administration Charge
A charge made by the lender to cover administration costs when a mortgage is repaid.
Contents Insurance
Cover for the contents of your home - including furniture, appliances and personal items - against damage and theft.
Collateral / Security
The property. The lender can take possession and sell it if the borrower does not keep up the mortgage payments.
Completion
When the sale and purchase are finalised and you become the owner of your new property OR when the re-mortgage is finalised and your previous mortgage has been repaid. See 'Drawdown'.
Contract
The legal written documents under which you and the person selling the property agree to buy and sell the 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 practitioner who deals with the legal aspects of buying or selling land or property.
Conveyancing
The legal process involved in buying, selling or remortgaging property or the sale and purchase of land.
Credit Bureau / Credit Reference Agency
These are companies whose purpose is to maintain records of individuals and businesses, their names, aliases, address and credit history. Most companies who offer credit will refer to one or more credit bureaus before deciding if the will lend to an applicant. The three credit reference agencies are , and . Most banks and other credit-granting organisations subscribe to one or more of these organisations to ensure the quality of their lending. This includes companies who sell goods or services on credit such as credit card issuers, utility companies and store card issuers. These companies are bound by the , which requires that data relating to identifiable individuals must be accurate, relevant, held for a proper purpose and not out-of-date. Individuals have a legal right to access data held on them. The activities of Credit Reference Agencies are governed under UK law by the .
This is a check that your lender will carry out to determine whether you have any County Court Judgements or have a record of not paying loans, credit cards and bills.
Credit Score
This is a way in which a lenders assess whether you are a good risk to offer a mortgage to.
Critical Illness Insurance
An insurance policy designed to pay out when the insured is diagnosed with a condition which is severely disabling. At minimum, The Association of British Insurers require that heart attack, cancer and stroke be covered, however, other conditions may also be covered.