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Mortgage Advisor & Director
What is a three-year capped mortgage?
A three-year capped mortgage is a type of variable rate mortgage that limits the amount of interest that can be charged on your monthly mortgage repayments for three years.
Our team of experienced advisors have helped many people like you to get the best deal possible on their three-year 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 mortgage work?
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 happens once the initial three year period ends?
Once the three year period ends, the mortgage is moved over to the lender's standard variable rate. You can then decide whether you are keen to start another capped mortgage, remortgage with a different lender or change to a different mortgage type altogether.
What are the advantages of a capped mortgage?
A few of the advantages of a capped mortgage include:
The certainty that the interest rate will never rise above a certain limit, even if the variable rate goes above this.
The ability to budget your monthly outgoings, knowing that your monthly mortgage repayments will not exceed a certain amount.
What are the disadvantages of a capped mortgage?
Some possible disadvantages to a capped mortgage include:
While your monthly payments will not exceed the capped level, they may still increase to this level, which would not happen with a fixed-rate mortgage.
You may find that the fees applied to capped rate mortgages are higher than other types of mortgage
If you end the mortgage deal early or remortgage within the initial two year period you may incur greater fines than on other mortgage types.
How can I get a two-year capped mortgage?
At Teito, we are a whole-of-market mortgage broker meaning that we have access to more than 20,000 mortgage deals, including the best capped mortgage options.
We work with over 100 lenders to help you find the perfect mortgage. Get started on your mortgage journey today by completing our straightforward online form.
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.
