Cancellation Period

The Consumer Credit Act gives you time after signing a contract where customers are entitled to cancel their purchase of some financial products.

Capital and Interest

Your monthly payments are to basically pay the interest on the amount you borrowed and to repay the outstanding mortgage. Also know as a repayment mortgage.

Capped Rate

Similar to a fixed rate, but the rate is guaranteed not to go above a certain level for a set period of time. It can, however, move downwards. On the first day of the month following expiry of the capped rate period, the interest rate will change to the then prevailing Standard Variable Rate.

Carpet-bagger

Someone who joins a mutual organisation (usually a building society or an insurance company) in the hope that the organisation may be converted to a limited company owned by shareholders and that in this event will realise a healthy profit by receiving a cash amount or selling any shares allocated to him.

Cashback

A loan where the borrower is given back a sum of money (usually a percentage of the loan). This is offered by some lenders as an incentive to borrow from them. These loans are typically at a higher rate than other mortgages.

Cash ISA

A Savings account that invests in Cash. Definitions of cash can be Bank & Building Society accounts, Cash Unit Trusts, National Savings Products (excluding National Savings certificates and Premium Bonds) and Money Market deposits. An ISA is free of all taxes.

CAT ISA

The government has drawn up guidelines on Charges, Access and Terms known as CAT standards. CAT marked ISA’s are ISA’s which comply with the CAT standards and have been awarded a CAT mark. The CAT marked ISA does not represent a government endorsement of that product and the CAT standards guidelines are voluntary for ISA providers.

CAT Marked

CAT Marked ISAs adhere to a set of voluntary standards drawn up by the Government. Companies can choose to adopt these for their ISAs. CAT stands for Charges, Access and Terms. An ISA that meets or betters the Standards is awarded a CAT mark.

CAT Standards

CAT stands for low charges, easy access and fair terms. The standards were brought in by the government as an incentive to offer savers an better deals, and to make it easier for you to spot the best value ISAs.

Child Tax Credit

This is available to families with children who have an income of up to £58,000 a year and who work at least 16 hours a week.

CCJ

County Court Judgement. An order of Court against a debtor to pay an outstanding debt and bill.

CFB

Corporation of Finance Brokers. .

Challenge Grant

A grant that is made on the condition that other funding be secured, either on a matching basis or by some other formula, usually within a specified period of time, with the objective of encouraging expanded fundraising from additional sources.

CHAPS (Clearing house automatic payment system) payment

An electronic transfer of money between two banks accounts. Usually clears the payment on the same working day.

Charges

Companies can charge for financial services in different ways, some may be for administration costs.

Clawback

This is a pension scheme which will offset an amount equivalent to the state pension against a target pension so as to arrive at the amount payable by the scheme.

If commission is paid to an intermediary by a financial institution for the introduction of business, and this does not stay in force for a certain pre-determined period, a part of the commission may be repayable to the institution. This is known as ‘clawback’. The practice is more prevalent among insurance companies.

Collective investment

Investments such as unit trusts, investment trusts schemes and open ended investments schemes are examples of collective or pooled investments.

Commission

An amount paid by a financial institution to an intermediary for the placing of business. Commission is also payable in a number of other situations where the payment for a service is a proportion of the value of the transaction (e.g. the provision of foreign currency, the sale of a house, etc).

Committed Funds

A portion of a donor’s budget that has already been pledged for future allocation.

Company Funds

A type of foundation formed by broad-based community support from multiple source: trusts, endowments, individual contributions, private foundations, or corporate grants. A community foundation generally makes grants only within a specified geographic area and is governed by a board representing the community it serves. Some community foundations offer donor-advised funds to contributors.

Company Representative

A financial adviser who can only advise on their own company’s products.

Completion

When the sale and purchase of the property are finalised, and you become the owner of the house or flat.

Compound interest

Compound interest is interest earned on interest and makes a huge difference to the value of long term savings.

Confirmation

(in Scotland) A court order confirming the validity of a Will and the identity of Executors. The equivalent under English law is Probate.

Consequential Loss

A financial loss occurring as the result of some other loss. Also known as an indirect loss. (e.g. a shop is destroyed by fire. The loss of the building, stock etc is a direct loss. The loss of ongoing profit because of the inability to continue trading is a consequential loss).

Contract

A legally binding agreement between two parties.

Contributions Committee

A corporate group organised to make grant decisions usually with the guidance of a corporate foundation or contributions administrator. Typical responsibilities include setting and interpreting policy, approving an annual budget, and reviewing grant requests.

Conveyancing

The legal process involved with buying and selling of a property.

Cooling off period

A period allowed in certain circumstances during which a person who has entered into a contract (for example, an insurance policy or a personal loan) may cancel it without incurring any penalty.

Corporate Contributions

A general term referring to charitable contributions by a corporation. Usually used to describe cash contributions only, but may also include other items, such as the value of loaned executives, products, and services. Permanent assets or with periodic contributions. (Also called a company-sponsored foundation).

Corporation Tax

A tax payable by companies on their profits.

Credit Card

Credit Cards allows you to buy goods or services now and pay later. It represents an approved company or bank to use their money. The name of the issuer appears somewhere on the card. Trade names such as VISA and MasterCard are not actually card issuers. They are termed “ membership associations.” Banks use them for their payment processing services, policy setting and marketing assistance. Many banks can package their own cards and different terms of credit using the logo and services of an association membership.

Credit Search

This is a check the lender makes with a specialist company to find out whether you have any County Court Judgments or a record of not paying loans, credit-card bills and so on.

Credit Scoring

A Lender will assess your application to find out whether or not you are a good risk to lend a mortgage to.