CAT standards
This content applies to England only.
Housing laws vary between England and Scotland. Get advice relating to Scotland
These are mortgage standards set by the Government. Non-CAT mortgages are not necessarily worse, but CAT standard mortgages should ensure a reasonable-value mortgage with no hidden charges or terms.
CAT is short for Charges, Access and Terms. Having a CAT standard mortgage should mean:
- no fees are payable to a broker who helps to get you a mortgage
- interest is calculated daily and you can choose which day of the month to pay
- there is no separate charge for a mortgage indemnity guarantee (for more about this see the section on mortgage protection)
- you don't have to buy any other financial product to get a mortgage
- there is no penalty for early repayments
- there must be no redemption penalty once the initial cheap or fixed-rate deal has ended
- you will not be charged a higher rate of interest if you get behind with payments
- you can continue with your existing mortgage if you move home provided the lender approves the new property.
