In 2001 the Government introduced a set of standards relating to charges, access and terms (CAT) that lenders could choose to apply to mortgages they offered. In October 2004 the Financial Services Authority (FSA) (now known as the Financial Conduct Authority (FCA)) replaced the voluntary CAT standards with new compulsory rules that all mortgage lenders were legally obliged to follow. Nationwide offered CAT standards on all mortgage products between 2001 and 2003 and on our Base Mortgage Rate between 2001 and 2005. These were removed from 1 December 2010.
Removing these standards didn't change the interest rate or monthly payment due under the mortgage and, if the mortgage is currently on our Base Mortgage Rate, it will retain the guarantee that it will be no more than 2% above the Bank of England base rate. The only change following the removal of these standards is that we may not give three months’ notice of changes to any charges, but we'll continue to always give appropriate advance notice of any such change.