Cancellation Period

The Consumer Credit Act allows a short period of time for consumers to cancel certain financial products.

Capital

The amount of money invested.

Capital Gains Tax

This is a tax charged when a profit is made on investments.

Capped Rate Mortgages

The mortgage interest rate will not exceed a certain value during a certain period of time but it can fluctuate above and below the current level.

Cash Advance Fee

The cost of using your credit card to obtain cash.

Cash Back

A type of Mortgage or Credit Card where the borrower is given back a percentage of money as an incentive.

Cash Limit

The maximum amount you can withdraw as cash using your credit card.

CAT Standard

These are a set of standards proposed by the government aimed at ensuring a certain level of standard amongst financial products. It is a sign that a lender or provider is a reputable business and offers products that are of a certain quality.

CCJ (County Court Judgement)

If payments on a financial agreement are not made, a magistrate may issue a county court judgement (CCJ) in the name of the individual. This greatly affects your credit rating.

Certificate of Deduction of Tax

This is a form prepared annually by banks and building societies for each saver detailing the gross interest, tax deductions and net interest for each interest bearing account.

Charge

The Charge is the Security the lender relies on when granting credit. The Security is normally in the form of a house.

CHAPS Fees

CHAPS is a payment system used by banks and is used for the transfer of funds when a mortgage is completed. There is normally a charged associated with using CHAPS.

Commercial Mortgage

Where the loan is granted for commercial purposes, and is usually secured against commercial property, though residential property may be used.

Commission

An agreed percentage paid to an individual for their services. Estate Agents charge a percentage fee relating to the selling price of a property. Most Financial Advisors are paid a commission by the provider of the financial product when they place business your business with them.

Comparison Table

A table giving comparisons between leading financial or other products to demonstrate which products represent the best value. Comparison Tables are also known as Best Buy Tables.

Completion

The moment at which all the legal formalities of the mortgage are finalised and the funds are drawn down from the lender, and usually into the solicitors account.

Completion Date

The official date for completion of a sale of a house, when keys are actually transferred.

Compound Interest

Interest on the interest.

Conclusion Of Missives

A Scottish term for exchanging contracts.

Conditional Insurance

An insurance policy that has to be taken out as a condition of obtaining a loan. It must usually be taken out via the lender's agency. See compulsory products.

Consolidation

The refinancing of existing debt from a number of lenders into one single loan from one provider.

Contents Insurance

This is the insurance of property within your home i.e. furniture, clothing, personal possessions etc. Contents cover is a separate type of insurance to buildings insurance, which covers the structure of your property.

Conveyancing

The legal documentation relating to the transfer of ownership of a property.

Conveyancing Fee

A fee charged by a solicitor for arranging the necessary legal paperwork in transferring the ownership of a property. The total cost of the legal work also includes profit cost, stamp duty, land registry fees and disbursements.

Co-Ownership

Shared ownership, a method of purchasing property in partnership with a housing association, where the borrower purchases part of the property and rents the rest from the housing association.

Council of Mortgage Lenders (CML)

The CML represents the mortgage lending industry and its members account for around 98% of residential mortgage lending in the UK.

County Court Fee

Fee for when a lender provides information to solicitors regarding county court rules when payments are in arrears.

County Court judgement (CCJ)

A county court judgement is a judgement for debt in the county court. This debt does not appear in the credit register if this debt is settled within 30 days of the date of the judgement.

Cover

The risk that an insurance policy protects against.

Credit Adverse

If a borrower has a poor credit rating, missed payments in the past or has outstanding county court judgements they would be described as credit adverse.

Credit Check

Where an enquiry is made on the credit history of an applicant, normally by reference to one of the major credit agencies such as Equifax or Experian.

Credit Checking Agency

A service used by lenders to establish a level of risk involved in leading money.

Credit File

A record held by a credit reference agency on an individual or a company. You can inspect your own credit file by writing to the agencies.

Credit History

The history of a borrower’s financial record.

Credit Impaired

If you have an impaired credit record you will usually need a sub-prime mortgage charged at a higher interest rate than standard.

Credit Limit

The maximum amount of debt allowed on a credit card.

Credit Rating

Rating used to establish risk involved in lending money. This is used in conjunction with credit history and financial status.

Credit Reference Agency

Companies that hold credit information one file.

Credit Scoring

A generalised way of assessing the credit application, carried out by scoring the answers to particular questions on an application form.

Creditor

Person or company to whom a debt is owed.

Critical Illness Insurance

Insurance cover for major illness, diseases and other potentially fatal medical conditions.