Cap and collar
This is when the mortgage interest rate will not exceed a specified value during a certain period of time, but can fluctuate up and down below that level but only can go down to a pre-determined point.
Capped products may have a ceiling and a floor between which the rate payable may fluctuate this is also referred to as cap and collar mortgages.

Capital
The original amount borrowed.

Capital and interest
Also known as a repayment loan. The borrower pays an amount each month to cover the amount borrowed or principal and the interest charged on it. As long as mortgage payments have been maintained during the mortgage term the mortgage will be repaid at the end of the term.

There are two main types of capital & interest mortgage, constant net payment and gross profile.

Capital raising
When you request excess funds over and above your mortgage this can be done via a further advance with your existing lender or as a re-mortgage. Excess funds may be used for debt consolidation, holidays, cars, refurbishment etc.

Some lenders do not regard this as capital raising if the funds are to be used for home improvements (i.e. increase the value of the property). See also remortgage.

Capped rates
This is when the mortgage interest rate will not exceed a specified value during a certain period of time, but can fluctuate up and down below that level.

Cash back
A payment made by the lender to the borrower upon completion of a certain mortgage. These payments are treated as gifts and subject to capital gains tax and often will form part of an early redemption penalty if the loan is redeemed during a certain period.

CCA
Consumer Credit Act (CCA) - The principal legislation protecting the provision of loans to individuals.

A regulated loan cannot exceed £15,000 and would hence not include a mortgage loan over £15,000. For this reason many lenders set a minimum loan of £15,001 to ensure it is not treated as a regulated loan. Having said this a lot of mortgage companies have a minimum mortgage of £25001.

CCJ
County Court Judgement - (CCJ) - judgement for debt in the county court. If a judgement is settled in full within 30 days of the date of the judgement it will not appear in the credit register. If however it is still outstanding at the end of 30 days it will be shown within the register.

If a judgement has not been settled and is outstanding this is likely to lead to a lender refusing a mortgage application. In fact applications are still likely to be declined if satisfied judgements are shown. A small number of lenders will offer loans when a judgement has been satisfied if the amount involved is small.
There are obviously lenders who will lend to people in this situation albeit with a slightly higher interest rate.

Centralised lender
Generic term applied to mortgage lenders, other than building societies and high street banks, who normally do not have retail outlets and operate from a head office location.

Clearing bank
same as Bank.

CML
The Council of Mortgage Lenders publishers responsible for producing various booklets on buying property to protect the borrowers.

Co-ownership
Also know as shared ownership. This is a method of property purchase in partnership with a Housing Association. The borrower purchases part of the property and pays rent to the Housing Association for the remaining.

Also known as co-ownership, this is designed for people who could not otherwise become homeowners.
Under most arrangements, the minimum purchase amount is 25% of the property value with the remainder available to be purchased in blocks of 25%.

Commercial mortgage
A loan granted for a commercial purpose, normally secured against commercial property, although in some cases residential property can be used. In most cases lower loan to values are used and always carries a higher rate of interest than a residential mortgage because the lender perceives a higher degree of risk.

Completion
The point at which the legal formalities of a property purchase or mortgage are finalised and the funds are drawn down from the lender. In the case of a purchase, the borrower should not be allowed to take occupation i.e. receive keys until after completion has taken place.

Conditional insurance
An insurance policy that has to be taken out as a condition of the loan. Normally conditional insurances must be taken out via the lender's agency so they can benefit from any commission made.

Contents insurance
Insurance to cover property within your home i.e. furniture, clothing, personal possessions etc. This does not include cover for the actual building.

Whilst lenders will be keen to offer contents insurance to borrowers, it is not essential that you should have it.
Contents policies normally cover goods within the home, although most will extend to include small amounts of cover outside the home i.e. jewellery and push bikes, possibly upon payment of an additional premium.

Contract work
Employers now offer employment under fixed-term contracts without the right to continued employment at the end of the term. This is so there is no liability in respect of redundancy and gives the employer greater control over staffing costs.

Converted flat
A flat that has been converted out of part of a larger property i.e. a house that has been converted into flats.

Conveyancing fee
A fee charge by a solicitor or licensed conveyancer for arranging the necessary legal work in transferring the ownership of a property.

Credit check
Enquiry made into the credit history of an applicant, normally by reference to one of the major credit agencies such as Equifax, CCN or Westcott Data.

Credit scoring
Method of assessment carried out by scoring the various answers given on a loan application.

Almost all loan applications are credit scored. Missing answers on an application will normally result in the maximum negative score being allocated to that question.

Criteria
Standard terms and conditions for acceptable loan applications made by the lender. These vary from lender to lender.

Current service (employment)
Length of continuous time that you have spent with your current employer.