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Mortgage Glossary Letter "C"
A,
B,
C,
D,
E,
F,
G,
H,
I,
J,
K,
L,
M,
N,
O,
P,
Q,
R,
S,
T,
U,
V,
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X,
Y,
Z
Click on the letter or the term you wish to have defined. You will them be take to a page with an explanation for what the term means
Cap and collar mortgage
See Repayment Mortgage.
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Capital and Interest Mortgage
See Repayment Mortgage.
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Capital Raising
This normally refers to a re-mortgage when additional funds are borrowed, as well as the amount needed to cover the mortgage. This can be used as a form of secured loan.
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Capped Rate mortgage
This type of mortgage gives you an interest rate somewhere between fixed and variable. The rate can change, but is guaranteed not to rise above a certain level. The capped level is usually higher than the level of a comparable fixed rate mortgage.
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Cashback mortgage
With this type of mortgage, a cash lump sum is paid to the borrower at the start of the mortgage term. The amount will vary from lender to lender. If the amount is large, it could be subject to Capital Gains Tax – ask your lender for details. As a general rule, the greater the cashback amount, the more restrictive your mortgage is likely to be – you might be offered a higher interest rate or have more fees to pay, for instance.
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Charge
In property law, this is your mortgage lender’s right to receive cash payment to cover the debt if the property is sold.
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Charge Certificate
If the property is registered with the HM Land Registry, this certificate will prove or transfer ownership of land. The Land Registry issues a Charge Certificate to the mortgagee of the property or the registered proprietor.
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Chattels
This is a legal term that means ‘the things you own’. The legal definition is property of any kind other than freehold land. In practice, it also covers your personal possessions.
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Chief Rent
Similar to the ground rent paid by a leaseholder, this is a small sum of money paid by the owner of a freehold property to the Lord of the Manor.
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Collateral security
This is extra security provided by a borrower to back up his/her intention to repay a loan. It is normally in the form of the property’s deeds, so that the lender can resell the property if the borrower does not make his or her repayments.
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Conditional Insurance
This refers to insurance that must be taken out as a condition of a mortgage offer. The lender can insist that the borrower take out cover for accident, sickness and unemployment or that combined buildings and contents insurance.
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Contract Race
This occasionally happens in England and Wales. It describes the situation where a seller has accepted two or more offers on the property and will sell to whomever is ready to exchange contracts first. This is less common now than it was in the mid-1980s.
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Conveyancing
This means the legal transfer of ownership of freehold or leasehold properties. This can take any amount of time from one day to several months. A period of about 12 weeks between making an offer and moving in is the most common.
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Covenant
This is the agreement that binds one or both parties who promise to perform or not to perform certain actions. Housing covenants may restrict what you can do with your property, or may require you to do certain things (see Conditional Insurance for example).
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