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!