CAT Mortgage

A mortgage that meets the government's benchmark standard for offering a clear and fair deal. CAT mortgage minimum conditions include: interest calculated daily; no separate charge for mortgage indemnity guarantee; all additional fees disclosed up front; no compulsory insurance linked; no early repayment penalties on variable rate mortgages; variable rate mortgages not to be charged at more than 2% over base rate; early repayment penalties on fixed and capped rate mortgages to be stated in cash terms and kept low; no redemption charge after the fixed or capped period has ended; the mortgage can be kept when moving home provided the lender is happy to lend on the new property.

If a particular mortgage product does not meet the CAT standard, this does not necessarily mean that it is a poor product. It may be designed for certain people with particular requirements. However, the absence of the CAT mark should prompt borrowers to consider why a particular product's terms differ from the standard, and then to decide if these terms are suitable for them.

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