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Capped Interest Rate
A capped rate is a mixture between a fixed rate and a variable rate. The interest rate is
guaranteed not to rise above a set level within the capped rate period but if the normal
variable mortgage rate is below the capped rate then the variable rate is charged. This gives
the 'best of both worlds' as the interest rate can fall but will not rise above the capped rate.
However, the level at which the cap is fixed is usually higher than for a fixed rate mortgage for
a comparable period of time. Sometimes 'Cap and Collar' mortgages are offered and these impose
a minimum payment rate (the collar) in addition to the maximum rate (the cap). The lender will
normally impose early redemption penalties if the mortgage is redeemed within the first few
years (see Redemption Penalties).
Capital & Interest Mortgages
More commonly known as a Repayment mortgage your monthly mortgage repayments to your lender
covers the capital, the actual money you borrowed, and the interest the lender charges you for
borrowing the money.
Cash Back
This is the arrangement whereby a cash sum of money is repaid to the borrower at the start of
the mortgage. The amount of the cash back will vary considerably from lender to lender with the
highest amounts being paid where the borrower is willing to forgo any fixed or discounted rate
offers and pay the normal variable mortgage rate. Cash back deals are also available in
conjunction with some fixed or discounted rates but the amount of the cash back will normally
be reduced in these circumstances. The lender will normally impose early redemption penalties
if the mortgage is redeemed within the first few years (see Redemption Penalties). Sometimes
the cash back money can be used to fund the deposit or be used for immediate home improvements.
CCJ or County Court Judgment
If you have not made payment on any debt that you have, you may be taken to a County Court for
the debt to be enforced. If the debt isn't satisfied then a decision or judgment will be made
in the County Court, normally for the non-payment of that debt, which will be registered on
your personal credit file as a CCJ. If the debt is paid or satisfied and a satisfaction
certificate obtained, then it will be noted on your credit file. CCJ's do not mean that we
cannot help you, apply today and find out that a CCJ doesn't mean that we will say NO! (We have schemes that
allow for unlimited numbers of CCJ's).
Centralised Lender
This refers to the group of lenders, other than high street banks and building societies, who
operate without a branch network, normally from one location.
Conditional Insurance
This refers to insurance products, which some lenders will impose as a condition of their
mortgage offer. This could mean that the lender insists that accident, sickness and
unemployment cover is taken out or that combined buildings and contents insurance is taken.
Completion
The final stage of the mortgage process and the day that your Mortgage or Remortgage is
completed. You will be contacted on the day of completion to check that you are happy with the
final position of your new mortgage or if you are purchasing, you will get the keys to your new
home.
Consolidate Debt or Debt Consolidation
To consolidate your debts means instead of several debts where you are struggling to meet all
the repayments you have just one manageable debt with a repayment you can afford. An Adverse
credit Remortgage can be arranged for you, giving you a fresh start and overcome past
financial difficulties.
Conveyancing
The legal process of transferring ownership of the property. A conveyancer, usually a solicitor,
deals with the redemption of your existing mortgage, the legal contracts, property searches and
will provide you with the monies that you may have raised to pay off unsecured loans, credit
cards and any cash raise funds that you have requested.
Credit Check
Before a lender considers lending to you, they will undertake a credit check through one of the
credit bureau's. A credit check determines your credit history; it looks to see whether you
have any CCJ's, Defaults, Mortgage Arrears, loan arrears, a Credit History, Bankruptcy, Debts,
IVA's and Hire Purchase Defaults or outstanding credit card bills. Most high street lenders
don't want anyone with a poor credit history, but we have schemes that will accept you with any
combination of these, providing you with the loan that you need.
Credit Scoring
This process is used by some lenders to determine what level of credit risk you are. They use a
scoring system based on credit history; good or bad, length at current address, security,
employment, income and answering these questions gives them a score or Credit Rating.
Mainstream lenders only want high scores. However, through the exclusive schemes that we have
negotiated with specialist lenders, we can provide facilities to suit your score even if it is
a low credit rating. The majority of your credit history and suitability will be on a national
credit database but it is up to individual lenders whether the risk is acceptable.
