Capped Mortgage
A Capped rate mortgage gives a specified upper limit on the interest rate for a specific period or the term of the mortgage. You can never pay above the stated figure, but can pay less as soon as the lender's normal variable rate drops below it. At its best a capped rate is a win-win deal. The risk is that rates may never fall by enough to get the benefit of the cap, in which case a straightforward fixed rate loan would have been cheaper. Also, some capped rates have a lower limit below which your payments cannot drop, even if general interest rates fall below that level – this is known as a “collar”.

Cashback Mortgage
A Cashback mortgage is where the lender provides you with a cash sum in return for you taking their mortgage. Usually the cash is only handed over in return for an agreement to stay with the mortgage lender for a certain period of time. The amount of money offered varies. Some lenders provide fixed sums, others a percentage of the original loan. There will almost always be early repayment charges associates with this type of mortgage during the initial period. Watch out also for any extended tie-ins which commit you to staying with the lender for long periods of time.

CAT Standard
Charges, Access and Terms'. CAT standard mortgages and ISAs comply with the Government's suggested guidelines for good practice.

Child Trust Fund
Often referred to as CTF. A government initiative launched in 2005 to encourage parents to begin saving for their child’s future as early as possible. The government provides a minimum of £250 on the birth of the child (subject to criteria). The money must be invested for 18 years. The Hanley operate the CTF account.

Completion
The point at which the mortgage is signed and executed and all its conditions come into effect. In the sale and purchase of property, it is when the balance of the purchase is paid by the purchaser to the seller and, in exchange the seller hands over the deeds.

Convenyancing
The legal work involved in the buying or selling of land or property. This may be carried out by a solicitor or licensed conveyancer.

Credit Scoring
The technique used by some lenders to assess the credit worthiness of potential borrowers.

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