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WHAT CAT STANDARDS OFFER
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VARIABLE, FIXED & CAPPED RATE MORTGAGES
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Charges
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- Interest must be calculated daily
- Full credit for all payments when made
- No separate charge for mortgage indemnity (MIG)
- All other fees disclosed in cash upfront
- Borrowers pay no fees to brokers
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Variable rate loans
- No arrangement fee
- Interest rate no more than 2% above official base rate
- When the base rate falls, the interest must adjust within a calendar month
- No early repayment charges at any time
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Fixed & capped rate loans
- Maximum booking fee is £150
- Maximum early repayment charge is 1% of the amount you owe for each remaining year of the fixed period, reducing monthly
- No early repayment charge after the end of the fixed or capped period
- No early repayment charge if you stay with the same mortgage lender when you move home
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Access
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- If there is a minimum amount you must borrow to get a CAT standard mortgage, it has to be £10,000 or less
- Any customer may apply
- The lender's normal lending criteria apply
- Provided your lender is happy to lend on the new property, you can continue with your CAT standard mortgage when you move home
- If you make regular payments, you can choose which day of the month to pay
- You can make regular early payments at any time
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Terms
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- All advertising and paperwork must be straightforward, fair and clear
- You do not have to buy any other product to get a CAT standard mortgage
- Your lender must give at least 6 months notice if they can no longer offer your mortgage on CAT standard terms
- If you are in arrears you should pay interest only on the outstanding debt at the normal rate
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