The Mortgage Code
The Mortgage Code is a voluntary code of conduct followed by lenders in the UK. It is intended to set minimum standards for the way business relating to mortgages and mortgage products is conducted and in doing so give some protection to consumers. If you want to check that your lender adheres to the Code you can contact the Mortgage Code Compliance Board.
The CAT Mark
This stands for Cost, Access and Terms and is a voluntary code introduced in the UK as a way of setting minimum standards for the mortgage industry. Mortgage products which meet the criteria set by the government are known as 'CAT marked'.
Some of the criteria for the CAT mark include: no lock in redemption penalties beyond the fixed, discounted or capped term, no separate charge for Mortgage Indemnity Guarantee, interest to be charged daily not annually, lenders' arrangement fees to be charged at a maximum of £150.00 and that related products like household insurance cannot be a condition of the loan.
