Sorry, there are no Capped Rates mortgage products at this time. Contact us on
0845 071 4414
to speak to an adviser or, alternatively.
VIEW OTHER MORTGAGES
A capped mortgage combines the benefits of both a fixed and variable rate product. A maximum rate (the cap) is set for a specified period of time and provided interest rates do not exceed the capped rate, the lender’s variable rate applies. If the lenders variable rate exceeds the capped rate, the borrower will only pay interest at the capped rate.
In this way the borrower has the certainty of knowing that the interest payable cannot go over a set rate during the capped rate period, but can also benefit from any reductions in variable rate during the same period.
After the capped rate period most mortgage products return to the lender’s standard variable rate. Some lenders will charge an arrangement fee for the capped rate and may also make an ‘early repayment charge’ (see glossary) should you choose to pay off the loan before the end of the capped period.
To find out more about this type of mortgage call us on 0845 071 4414