Mortgages
Capped Rate Mortgage
Capped rate mortgages are very similar to fixed rate mortgages, in so much as there is a maximum interest rate set for a given period of time. The rate you pay will not exceed this capped rate. In other words the rate you pay is capped at a certain level and despite interest rate rises the maximum amount you pay will be the capped rate.
Unlike fixed rate mortgages, however, should the interest rate fall below the rate that you have your mortgage capped at, the rate you pay will track the interest rate downwards reducing the amount you pay.
Pros and Cons
Capped rate mortgages provide you with the best of both worlds. They protect you from rises in interest rates, whilst allowing you to benefit from any falls in rates.
As with fixed rates, there are normally arrangement fees for this type of mortgage and sometime the amount of the fee can outweigh the benefits of having the capped rate. It is important to seek advice and this is where I can help. For more information and to find out whether a capped rate mortgage is right for you call me or fill in my online enquiry form.
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29 Jul 10, 02:07:47
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| House price inflation eases again |
UK house prices fell 0.5% in July, the Nationwide says, cutting the annual rate of house price inflation to 6.6% from 8.7%. |
