Capped Mortgage

What is a Capped Mortgage

A capped variable rate mortgage price that will not rise above a certain rate

Available most commonly on a tracker mortgage or SVR mortgage

Not a common mortgage for lenders to offer

Pros:  The repayments will not rise to a level you cannot afford.  You are protected from high a rate increase

Cons:  Many capped mortgages have something known as a collar, which is another cap that prevents your rate from falling below a certain level.  You will not benefit from a low rate, if it falls.

Who is suited to a Capped Mortgage?

Homeowner who do not wish to protect themselves against rates rising and are willing not worried by having a capped rate even if rates fall.

So many options…more ways than one to build your dreams!