0800 358 5068

 

Capped-rate mortgages are a kind of halfway house between fixed-rates and discounted deals. As the name suggests, a cap, or ceiling, is put in place so that your rate will not rise above a predetermined level during the capped period.

However, like discounted deals, they offer the flexibility for your repayments to fall if interest-rates are cut.

Capped rates are often a little more expensive than discounted deals. Nevertheless, for those borrowers that want the security of knowing that their repayments will not spiral out of control, whilst avoiding the risk of paying more than necessary if rates are cut, they can be ideal.

Occasionally, a capped element is combined with a tracker or discounted rate which can make them an even more attractive proposition.

For advice on the best capped-rate products, speak to one of our specialist advisers on 0800 358 5068.