Capped rate mortgage

A capped rate mortgage will ensure that the interest rate will never rise above a certain level. This type of mortgage is attractive if you decide that you don’t want your payments to vary too much. Although capped rate mortgages are still linked to your mortgage lender’s standard variable rate (SVR), and will rise and fall with the base rate, their interest rate is “capped” for a given term. If interest rates rise above your capped level, you will benefit; if they fall, so will your mortgage rate.

This kind of flexibility comes at a price and capped rate mortgages are usually higher than both fixed and discounted mortgages. They can be a good option for those that need to know their outgoings, but would still like to benefit should rates fall.

Your home may be repossessed if you fail to keep up the repayments on your mortgage.

Why not contact us for a more detailed analysis of your requirements.