Skip to main content

CAT standards for mortgages

If a mortgage meets the CAT standard it should be clear, fair and easy to understand. CAT is short for Charges, Access and Terms.

The government introduced these standards to encourage mortgage lenders to provide basic and transparent conditions.

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.

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.

Scotland map Housing laws differ between Scotland and England.
This content applies to Scotland only.
Get advice if you're England

If you're still looking for help, try searching, or find out how to contact us

Was this page helpful?

This feedback tool can't offer advice. If you still need help, please call our free housing helpline on 0808 800 4444

Would you recommend Shelter Scotland's website to a friend, colleague or family member?
(0 - not at all likely, 10 - extremely likely)

Your feedback is being submitted

Success! Thank you for your feedback.

If you'd like to hear more about our work at Shelter Scotland, you can sign up to receive updates on our campaigns page.

Sorry, there was a problem sending your feedback to us. Please try again or contact us via the website if this error persists.

The fight isn't over - support us this summer

far from fixed campaign logo
It’s a disgrace that people are still homeless in Scotland today. Join our campaign
It’s a disgrace that people are still homeless in Scotland today.
Volunteer
Find out more about volunteering with Shelter Scotland
Volunteer with Shelter Scotland
Have you had a bad housing experience? Tell us about your story.
Share your story of a bad housing experience
£