Capped Rate Mortgages | Capped Mortgage
Capped Rate Mortgages
Interest rate is variable with an upper maximum for a guaranteed period.
Capped rate mortgages are a compromise between fixed rate and variable rate mortgages. There is a fixed upper rate charged on your home loan but, if the base lending rate falls or remains stable, the interest charged on it remains in line with the base rate.
Capped rate mortgages are a safe option. For example, if you have a fixed rate mortgage and rates fall, your repayments would not fall in line with the decrease. With a capped rate however you would benefit from any fall in rates. If you have a discount mortgage and rates rise, your repayments would increase. With a capped rate your repayments do not rise above a certain level. With a capped rate mortgage however you cannot benefit from the best rates available as better deals can be found on fixed rate and discount mortgages.
For more information on capped rate mortgages or to apply for a capped rate mortgage please follow the link - Capped Rate Mortgages >
- Your home may be repossessed if you do not keep up repayments on your mortgage.
- Changes in the exchange rate may increase the sterling equivalent of your debt.
- The FSA do not regulate certain mortgages.
- The advice and/or guidance contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.