Capital gains: Financial gain when there is an increase in the value of assets, such as a house. This gain may be subject to taxation.
Capped Rate Mortgages: A capped mortgage loan is one on which the interest rate is guaranteed not to rise above a certain level. Some capped mortgages will have a ceiling and a floor between which the interest rate payable may move; such loans are known as cap and collar mortgages.
Cash Back Mortgages: Cash back mortgages provide a borrower with a single lump sum payment immediately upon completion. The amount of cash is usually calculated as a percentage of the overall loan amount. The percentage of the loan given as cash lump sum can be as high as 5%, although amounts between 1 and 3% are more common.
Cash Buyer: A purchaser that does not require a mortgage in order to buy a property, and who does not have to sell a property to raise the capital.
CCJ: A magistrate can issue a county court judgement (CCJ) if payments on a loan are not made. A CCJ will have an adverse effect on an individual’s credit rating.
Certificate Of Deposit: Certificate from a financial organisation declaring that an individual has the funds available to pay a deposit.
Charge: Security the lender relies on when granting credit.
Collection: Steps taken by a lender to bring a borrower’s payments up to date.
Commercial Mortgage: A mortgage loan granted for commercial purposes. The loan is normally secured against a commercial property, although a residential property can be used. Commercial mortgages attract higher rates of interest, as there is a higher degree of risk involved.
Completion: The time at which all of the legal formalities of the property purchase, or mortgage, are finalised. At completion, the funds are drawn down from the lender, and usually deposited into the buyer’s solicitor’s account.
Completion Date: The official date for the completion of a sale of a property, when the keys can be obtained by the buyer.
Compound Interest: Interest charged on the original interest.
Contents Insurance: The insurance of items within the home i.e. furniture, personal possessions, etc.
Conveyancing: This is the work that is done to enable the legal transfer of property. The process includes drawing up contracts, carrying out searches, and looking after all post-completion paperwork.
Conveyancing Fee: The fee charged by a solicitor or licensed conveyancer for arranging the necessary legal work in transferring the ownership of a property.
Co-Ownership: Shared property ownership. A way 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 industry in the UK. Membership comprises banks, building societies and mortgage lenders. The CML produces research and statistics on mortgage related areas and maintains data on UK mortgage lenders. Website: http://www.cml.org.uk/cml/home
Council Tax: An annual tax levied by a local authority to finance essential services such as road maintenance, rubbish collection and leisure centres. The amount of council tax payable (there are different charge bands) is based on the value of the property lived in.
County Court Fee: Fee charged when a lender provides information to a solicitor regarding county court rules when payments are in arrears.
County Court Judgement (CCJ): A judgement for debt in a county court. This debt does not appear in the credit register if it is settled within 30 days of the date of the judgement. Very few lenders are willing to offer loans to anyone with a CCJ.
Credit Averse: If a borrower has been bankrupt, or has CCJ’s they are delineated by lenders as credit adverse.
Credit Check: An enquiry made regarding the credit history of a loan applicant, normally to one of the leading credit agencies such as Equifax or Experian.
Credit Checking Agency: An agency used by lenders to estimate the level of risk in leading money.
Credit Crunch: The difficulties being experienced by banks and other lending institutions in not being able to raise funds for mortgage lending. This has resulted from the sub prime crisis in the USA. Many financial providers have had to withdraw mortgage products from the market.
Credit File: A record held by a credit reference agency on an individual or a company.
Credit History: A record of the financial history of a borrower.
Credit Rating: A system of rating used to establish risk in lending money. This rating is used together with the credit history and financial status.
Credit Reference Agency: Organisations that hold credit information one file.
Credit Scoring: A method of assessing a credit application, carried out by scoring the answers given on an application form.
Credit Worthy: A term used for a borrower who is considered by a financial provider to be a low risk to lend to.
Creditor: An individual, or company to whom a debt is owed.
Critical Illness Insurance: Insurance cover for major illness, diseases and other potentially fatal medical conditions.