Capped Rate Mortgages
Capped rate mortgages are mortgages where the interest rate does not increase over a set term. However, capped rate mortgage rates can fall during that period.
What are the benefits of capped rate mortgages?
Capped rate mortgages offer the borrower the security of knowing their mortgage repayments will always be within a set amount.
In this respect, capped rate mortgages offer the benefits of both fixed rate mortgages and variable rate mortgages as you have a set limit on the maximum amount of interest you will pay over a certain period, but also have the added bonus of paying less if the variable rate drops.
Where to find capped rate mortgages
The best place to check for capped rate mortgages is with a mortgage broker such as Alexander Hall or Charcol as that way you do not have to trawl the high street bank and building societies looking for the best capped rate mortgages.