Capped Mortgage

A Capped Mortgage is based on a lenders standard variable rate.  The rate has a set limit i.e 7%.  If the standard variable rate increases you will never pay above this capped rate within the products specified period.

Pro's

• You know your maximum interest rate.
• You can budget knowing what your maximum cost may be.
• You may benefit from interest rate reductions.

Con's

• There may be early repayment charges.
• Usually a higher interest rate than those of a comparable fixed rate.