What Are Capped Rate Mortgages?

A capped rate mortgage is a type of variable rate mortgage that is guaranteed not to rise above a specific rate, this being the ‘cap’ agreed by the lender, within a period set by the lender. If the lenders standard variable rate increases you only ever pay up to your agreed capped rate, if the rate falls you will benefit from cheaper mortgage payments. A capped rate mortgage is an ideal package to benefit from when interest rates vary. If you are looking for a mortgage that offers the best of both a variable and a fixed rate mortgage, then a capped rate mortgage may be a great option for you.

Pros & Cons

• Offers more security than a standard variable rate mortgage as your repayments will never go beyond a certain amount.
• If interest rates fall your repayments are likely to fall too.
• You pay a little for having this security - you are unlikely to get as good a rate as a fixed rate, discounted or offset mortgage.

Our Offer to You

Finding the right mortgage is an important responsibility and probably the largest financial commitment you will obtain. There are thousands of mortgage deals and lenders to choose from so securing a mortgage that’s right for you can prove to be difficult. Here at Remortgageexplorer we will search the financial market to discover a mortgage that is tailored to your individual requirements from a top UK lender.

We have specialist mortgage lenders for people with bad credit ratings from CCJ’s, IVA’s, defaults or existing debts, who do not penalise you for your financial or employment status, even if you are self employed and have no proof of income, we have mortgage deals to suit all circumstances. To see whether a capped rate mortgage would be suitable for you please complete our online application form absolutely free and we will do all the hard work for you.