Capped rate mortgages

Capped rate mortgages out a ceiling or cap on the level of interest charged. The rate could vary and go up or down but will not rise above the capped level that has been agreed.

One advantage of a capped rate mortgage is that although it will not go above a certain level it can track the base rate downwards, thus reducing the level of interest charged should the base rate fall.

Another advantage is that like a fixed rate mortgage you know the maximum repayment that you will have to make. However, there are only a limited number of capped rate mortgages on the market and they tend to charge a higher level of interest than you would pay on a typical fixed rate or discounted rate mortgage.

	Coventry BS launches buy to let capped tracker Coventry Building Society has released a capped tracker mortgage for buy to let investors, available up to 65 per cent LTV.
	N&P launches new low rate fixed term mortgages The Norwich & Peterborough Building Society has launched a new range of fixed rate mortgages with rates starting from just 2.94 per cent.
	LV= cuts rate on its lifetime and flexible lifetime mortgages LV= has announced that it will cut the rates on their lifetime and flexible lifetime mortgages for the second time this year as a result in a fall in the wholesale rates.
	Capped rate mortgages A capped rate mortgage is a loan secured against a property where the level of interest charged has a ceiling.
	Loughborough BS launch new fixed-rate and discount mortgages The Loughborough Building Society has launched a new five-year fixed-rate mortgage at 4.24 per cent for those with an 80 per cent loan-to-value ratio.