Capped Rate Mortgages

There is an agreed maximum interest rate but if general mortgage rates fall below this then you pay the lower rate. A good idea when there is no definite pattern to how interest rates may move.

There is generally an upfront fee to pay and penalties during the period of the capped rate if you try to remortgage elsewhere. Some capped rates offer little protection as the 'cap' is set too high in relation to the economic conditions and interest rates.

See our mortgage news page for interest rate information.