CAT standards for mortgages

This content applies to Scotland only.

Housing laws vary between Scotland and England. This page applies to Scotland only. Get advice relating to England

If a mortgage meets the CAT standard it should be clear, fair and easy to understand. The government introduced CAT standards to encourage mortgage lenders to provide basic and transparent conditions. CAT is short for Charges, Access and Terms.

Non-CAT mortgages are not necessarily worse, but CAT standard mortgages should ensure a reasonable value mortgage with no hidden charges or terms. You can also use the standards to assess the pros and cons of a non-CAT mortgage.

Having a CAT standard mortgage should mean:

• no fees are payable to a broker who gets you a mortgage
• interest is calculated daily and you can choose which day of the month to pay
• there is no separate charge for a mortgage indemnity guarantee (MIG)
• you don't have to buy any other financial products such as buildings insurance to get your mortgage
• there is no penalty for early repayments
• there is no redemption penalty once the initial cheap or fixed-rate deal has ended
• you will not be charged a higher rate of interest if you get behind with payments
• you can continue with your existing mortgage if you move home, provided the lender approves the new property.