A capped rate mortgage is a variable interest rate, but the mortgage lender will guarantee the rate does not rise above a certain level.
The capped rate mortgage suits those who want to benefit of any reductions and protect themselves from any increases. Its and ideal product for all but capped rate mortgages are usually more expensive than standard variable rates as the lender takes more risks.
A capped rate mortgage is similar to the base rate tracker. For example: say the mortgage base rate is 2% plus 2%, capped at 5%. If the base rate was 4%, therefore the rate offered will be 5% as oppose to 6%
There are not so many mortgage lenders offering this type of mortgage scheme. Speak to one of our advisers to confirm. However when mortgage conditions improve, mortgage lenders will innovate such products again. Our mortgage brokers will be able to source and advise you the right deals based on your circumstances.
If you searching a capped rate mortgage, please speak to one of our advisers whom will search the whole market for you. As stated above, there are very few capped rate mortgages available but we will look for you.