The Treasury Department released its much anticipated guidelines for Cat standard mortgage products this week.
The Cat standard rating is to be extended to some discounted and cashback products. Under the original plans announced in late January, these types of mortgages were excluded.
Other rules state that brokers cannot charge customers fees on Cat standard products and that borrowers should not have to take out a loan of more than £10,000 in order to qualify.
Economic Secretary Melanie Johnson says “Cat standards will be an important part of providing simple, clear easily comparable information to consumers. Even those who choose non-Cat standard products should find them useful as benchmarks to judge how the alternatives measure up.”