Head of Content
Mortgage Advisor & Director
What is a capped rate mortgage?
A capped rate mortgage is a type of variable mortgage where the interest rate is guaranteed not to exceed a certain level for a specified amount of time.
Our team of experienced advisors have helped many people like you to get the best deal possible on their capped mortgage. Let our team find your perfect mortgage today. Complete our simple online form now, and we promise to make your mortgage journey as stress-free as possible!
How does a capped rate mortgage work?
With a capped rate mortgage, the rate can fluctuate but will not rise above a specified level within the initial term. After this period, the rate reverts to the lender's Standard Variable Rate. The difference between a capped mortgage and a standard variable rate mortgage is that the interest rate can not increase beyond the cap, meaning that your monthly repayments will not rise above a certain level.
What are the benefits of a capped rate mortgage?
For some, capped rate mortgages offer the best of variable and fixed rates mortgages.
While you will be able to take advantage of any interest rate reductions, your monthly repayments will not exceed a certain level which helps you to budget accordingly.
What are the disadvantages of a capped rate mortgage?
You may have to pay more for this benefit than a fixed or discounted mortgage, and there are generally early repayment charges that apply.
The capped rate only lasts for the initial term before you are moved on to the lender's Standard Variable Rate, however from this point you will be able to remortgage without incurring early repayment fines.
Where can I find more information?
As a whole-of-market mortgage advice service, our experienced team of advisors have access to deals not available to the general public, and have helped thousands of customers to find their perfect mortgage. Complete our simple online form today to get started!
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
