Capped Rate Mortgages
mortgage guide

A capped rate mortgage is very similar to a fixed except that if the variable rate drops below the capped rate, the borrower will make payments based on the lower variable rate. However should rates increase the payments will be capped and will not rise over the capped rate.

Again, as with fixed rates, up front arrangement fees and early redemption fees are common.

This content of this site is for information purposes only, as a plain speaking introduction to mortgages. No claim to the accuracy of information on this site is made and you are strongly advised to verify information presented here with a qualified advisor before making any financial decisions based on this information.