Glossary > The Letter C

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The Letter C
Saber Finance know the finance world is full of terms, phrases, buzz words and jargon.

On this page we explain,
Capped Mortgages > Capital > Capital and Interest Mortgages > Cash Back > Car Insurance > Car Loans > Career Loan > CCJ > Capital Gains Tax > Charge Card > Cooling Off > Common Hold > Consolidation > Contents Insurance > Conveyance > Creditors > Credit Cards > Credit Check > Credit Facilities > Credit Scoring > Credit Unions > Critical Illness Insurance

Capped Mortgages
A capped mortgage is a mortgage product with built in repayment size protection. With capped rate mortgages the mortgage interest rate has a top ceiling rate at which the mortgage stays under for an agreed period. There are variations to this, normally if interest rates are lower than the capped rate repayments are at that lower rate, however if the interest rates exceed the capped rate repayments revert to below the agreed capped rate. Capped rate mortgages have an interest rate that is set for anything from a few months to several years.
The pros of a capped rate mortgage is the holder knows the top rate of interest that will be charged on their mortgage through out its duration assisting them with budgeting.
The cons of a capped mortgage is the agreement ties the holder into the deal with penalties being charged for leaving early which makes re-mortgaging more expensive.
For those visitors interested visit our mortgage tools section.

Capital
Capital is another term for the finance amount. It is used throughout the term of a mortgage to describe the amount outstanding that you owe, excluding costs and interest.
When borrowing other finance from a lender, this is the original amount borrowed, excluding any interest to be charged or fees.

Capital and Interest Mortgages
A capital and interest mortgage is a mortgage product where the customer repays the capital and any interest charged simultaneously. Capital and interest mortgages are more commonly known as a repayment mortgage. The monthly mortgage repayments to the lender covers both the actual money borrowed, and any interest the lender charges.
Repayments on these mortgages can be affected by any fluctuations in the base rate if the lender passes them on. The capital and interest mortgages are among the most popular mortgages taken out in the UK.
To find out more visit our property finance mortgage section.

Cash Back
Cash back is a financial reward for using a companies product. The cash back given by a lender for taking on a finance product relies on the capital amount and the type of product taken. For example cash back on a mortgage could be used to help pay for the deposit or for improvements to the property. This makes it a good marketing gimmick for the company, as they are seen to be offering their consumer a good deal. Although in reality the customer will eventually pay back the reward they were given with their repayments as cash back is usually added to the total borrowed.

Car Insurance
There is simply no escape from car insurance. Whatever the motor you drive, it is a legal requirement for all drivers to be covered by car insurance before you can take to the roads.
If you are an old hat at this and are simply looking for a cheaper deal on your car insurance, try our car insurance best buy table or the vehicle insurance directory to find insurers.
But, if you are after more information read on.

Car Insurance Policies
Before you go searching for insurers to compare quotes, it is worth knowing, that in regard to car insurance the first party is the insurance policy holder, the second party is the insurer and a third party is anyone else.

There is three main types of vehicle insurance available in the UK,

Third Party Only.
Third Party, Fire and Theft.
Fully Comprehensive.

Third Party Only
This is the bare minimum allowed by law and is very limited in its scope, covering the policyholder only for the cost of damage to a third party’s property or injury to a third party.

Third Party - Fire and Theft
This is basically the same as third party only but with the addition of cover against your car being stolen or catching fire.

Fully Comprehensive
This is the most protective option with cover offering protection against not only third party claims but also first party protection with car and passenger cover in the event of an accident regardless of fault.

Now you know what types of protection are available, it is worth noting that individual insurers policies for car insurance vary according to many factors. These factors include the type of cover you want plus information about you, your car, its contents, its location and what other optional extras you would like including in the policy.

You can help lower your insurance quote if your motor is kept in a garage overnight or in a secure compound while you work. Fitting an alarm or security devices such as an immobilizer can dramatically effect quotes also. Where as wanting a courtesy car and quick repair assistance could in fact increase policy costs.

Compare Car Insurance
Before you look to compare car insurance quotes work out what type of policy you want with what extra cover you will require, along with details of the car and any security devices it as fitted and any locations you will be travelling to and from.
We have a best buy car insurance table, with savings for online applications. And a vehicle insurers search directory, listing insurers for you to compare.

Car Loans
Few of us, when looking for a new car can actually afford to purchase the vehicle without borrowing money, and that means considering finance.
If you are buying from a forecourt dealer, the chances are that you will be offered a loan to purchase the car. Think very carefully about using these credit facilities. Personal loans arranged prior to visiting the dealership should be far more competitive.
Need a loan to help purchase a new car? Well, you will want to find the best loan for you.
Use our loan search directory to find a suitable personal loan, it should save you money and time.

Career Loan
A career loan is a loan which as been applied for the purpose of improving or creating employment prospects.
If you are looking for a job or attending interviews, you are going to want to look your best. Are you starting new employment and are wanting to make a great impression but until you get paid short of funds? A personal loan would enable you to buy a new collection of smart work clothes and when coupled with a brand new hairstyle be guaranteed to make a dynamic start to the new position.
Perhaps you're interested in a change of career but are concerned about bills while you're retraining? A event loan could help you bridge that gap until you're up and earning again, and since you have new skills you should be earning even more.
You may be starting back to work after having kids but have found the skills in your job have moved on. A quick refresher course should have you back up to speed and in no time it should seem you haven't been away.
We have a loan payment calculator, that can help you find a loan with payments to suit your budget.

CCJ
CCJ is short for a county court judgment. A CCJ is the result of a court ruling against a person for a non payment of a debt. When repayment on any debt has been defaulted and contact attempts ignored there is the real chance borrowers will be taken to the Crown Court. Then if the debt still is not satisfied a decision or judgment made in the County Court, normally for the non-payment of that debt will be registered on the borrowers credit file as a County Court Judgment. If the debt is later paid or satisfied and a satisfaction certificate obtained it will be noted on the borrowers credit file. This will assist customers applying for fresh finance and if the debt is paid within a certain time could cancel out the effect of the county court judgement.

Capital Gains Tax
If you buy an asset or investment then later dispose of it for more than you paid for it, you are said to have made a capital gain. Make enough gains in one particular tax year and you will be liable for capital gains tax.

Charge Card
A Charge Card resembles a credit card. Accounts with charge cards insist you settle any balances in full each month. Charge card issuers operate penalty interest charges which are significantly higher than credit card interest rates for failure to pay.
If you are after a good credit card visit our credit card best buys.

Cooling Off
The "cooling off" period can be defined as the length of time allowed after signing an agreement, to change your mind and cancel it without incurring a financial penalty.
The actual duration of the cooling off period is dependant on the type of agreement signed.

Common Hold
Commonhold is a fairly new way of owning properties, such as flats, shops and offices. It is an alternative to long leasehold ownership of shared property.
In a block of flats each flat is considered a unit, and each one of these units can be brought by a different individual, called unit-holding. The shared or "common" areas are then managed by a common hold association, which only the unit-holders may be members. The management and upkeep of the shared areas is usually financed by an apportionment between the unit-holders.
If you need finance for property visit the mortgage tools section.

Consolidation
Consolidation is a term used to describe the placing of existing debts together and arranging fresh finance to clear or repay them. This then leaves only the latest finance left to be repaid. Consolidation or debt consolidation as it is more commonly referred to, is currently a large growth area, and companies charge customers varying amounts to manage debts, contact creditors, arranging loans and then using the finance to pay of the outstanding debt. Companies that offer this consolidation service generally make their profits from the money saved by offering creditors an early settlement to any debt owed.

You don't have to pay debt management companies for this service, it is possible to arrange a loan and consolidate your debt yourself.
We have a section on consolidation for visitors interested in the process, or we have loan tools available if you are wanting to apply for a loan to consolidate with.

Contents Insurance
This is insurance product which should be considered by all householders regardless of if they have a mortgage. Contents insurance covers items such as furniture, carpets, curtains, electrical goods and many policies also cover certain personal possessions, which may be removed from the home. Contents insurance is separate to buildings insurance, and is a must have due to the cost of replacing lost or damaged items if the unthinkable happens.
If your after insurance products, try our insurance search directory.

Conveyance
A conveyance does the legal work, usually carried out by a solicitor, associated with buying or selling a property. Includes the process of transferring ownership of the property, deals with the contracts and property searches. These legal steps and their fees are just one of the many charges involved in property buying and selling which can easily be over looked when saving up.
After becoming a homeowner, then visit our mortgage section for more information.

Creditors
Creditors is the term used to describe those individuals or companies owed money to. When you take on finance be it a loan or a mortgage you borrow money from a lender. You then proceed to repay that money via your monthly repayments. Whilst you owe money or are making those repayments the lender is said to be your creditor.
If you are made bankrupt or have possessions seized because of non payment of debt, those possessions might be sold and any revenue raised used to pay back those you owe, your creditors.

Credit Cards
Credit cards are a finance product that is used to access credit, of which the amount available is pre-arranged. Credit cards are a plastic card from a particular issuer for purchasing goods and services against a line of credit established by a bank or other financial institution. Today there are plenty of credit cards to choose from, the most recognised bearing the Visa and MasterCard symbols.
Credit cards issuers make money by charging interest on any finance used by the holder of the card. The annual percentage rate or APR is used when calculating the interest rate charged on a credit card. So the higher the APR the higher the repayments, the lower the APR, the less and smaller the repayments.
Credit cards allow you to spend whenever you want, regardless of what's in your bank account and they provide flexibility and convenience, especially when you are away from home.
If you are searching for a card, save yourself some time and try our credit card best buys.

Credit Check
A credit check is the process by which a financial history is compared against a scoring system, prior to any fresh finance being lent.
Lenders perform a credit check before they agree to grant any finance and many factors and criteria are taken into account during the process. These criteria include the length at the current address, security, employment, income, marital status, age and credit rating. The credit check will reveal if there is an adverse rating based on debt repayment history, therefore arrears, late and defaulted payments, missed payments and any CCJ's, will all mean a lower rating.
A low rating found on a credit check might be held against you and result in your application for finance being turned down by mainstream lenders. There are loan providers online that specialise in lending to people in this situation all you need to do is first find them and then apply for their product.
We can help you cut down on the time spent looking for lenders, just use the finance tools.

Credit Facilities
Credit facilities is where an establishment, business or shop has a pre-arranged set up in place to process their customers applications for finance. Credit facilities are a form of consumer credit.
When shopping for goods or services you may find you are unable to pay the full bill immediately. You may decide to pay the outstanding amount on a credit card, or choose to use the stores, shops or places own credit facilities.
This will be a service where the establishment has arranged with a financial institution a line of credit products. Acceptance to these finance products will still be dependant on your individual credit history and status.
You do not have to take the credit facilities available, you could find out how much the item will cost. Leave and then arrange a personal loan to create the finance to pay for it. This could save you hundreds of pounds in the long run.
We can save you time finding a personal loan by providing an introduction to some loan tools, saving you on the time spent looking yourself.

Credit Scoring
Credit scoring is the process used by lenders during the credit check. The credit history of the applicant, including borrowing and repayment, is considered using a points system to determine their suitability for additional credit being lent. Lenders always perform a credit check before agreeing to grant any future finance and many factors and criteria are taken into account on the credit check. The particular criteria and factors favoured by individual lenders are not disclosed but the check will reveal if there is a low rating based on credit history. This check reveals the applicants credit score and lenders then use this to access the risk to them. If you have been turned down on a finance application it may be possible to apply to see your file from the credit agency to see why you are having problems and if a mistake has been made resulting in you having a poor credit rating.

Credit Unions
A credit union is when a group of people, organisations or businesses get to together, raise some capital to lend to borrowers amongst themselves. This way members of the union benefit from cheap finance and can build common ground amongst members of the union.

Critical Illness Insurance
Critical illness insurance cover provides you with a lump sum of money should a major illness be diagnosed, however this benefit is not payable in the event of a death. Should such a major illness be diagnosed this type of protection can provide capital both for your family and business. This kind of cover works well in association with Life Insurance.
Use out insurance tools to find insurance products and save time doing so.

If you are in any doubt about any financial product or term we recommend that you seek advice from a financial advisor.

If you're after Finance Information, Saber Finance is here to help.