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.
- Capped rate mortgages
- Leeds BS cut fixed rate mortgages by up to 0.31%
- Tesco Bank launch new two and five-year fixed rate mortgages
- Capped-rate mortgages stage minor comeback
- Barclays cuts fixed rate mortgages by up to 0.2%
- Skipton BS cuts rates on 2,3 and five-year fixed rate mortgages
- Coventry BS launches buy to let capped tracker
- Is a fixed, capped, or discount-rate best for paying off mortgages fast
- N&P launches new low rate fixed term mortgages
- Nationwide cuts fixed-rate mortgages