Capped Rate Mortgage
A Capped Rate Mortgage allows the rate of your mortgage to fluctuate in line with the lenders SVR (Standard Variable Rate) however for a fixed period of time the rate will not rise above your capped rate, this is usually 2, 3 or 5 years.
This enables you as the borrower to know that there is an upper limit on the interest that you will pay during your Capped rate mortgage term.
So a capped rate mortgage gives you the flexibility of a variable rate mortgage with the security of a fixed rate mortgage, with a fixed upper limit on the interest.
The most common terms for a Capped rate mortgage are:
- 2 year
- 3 year
- 5 year
This type of mortgage will usually have an early repayment charge that applies during the capped rate period. After this you are usually free to move your mortgage without penalty.
Think that a Capped Rate Mortgage is right for you? Let us help you find out.
Amber Mortgage Solutions invite you to contact us on 01702 619 221 Our Mortgage brokers are able to advise you and recommend the best mortgage for you based on your indivdual circumstances and attitude to risk vs reward. Alternatively you are welcome to use our convenient enquiry form and we will respond to your questions promptly.
After your capped rate mortgage term has expired you will normally switch to the standard variable rate for your particular lender, we would highly recommend that you contact us three months before your capped rate expires to enable us to arrange your new mortgage for you 01702 619 221 if you have used us before we will contact you in plenty of time as a reminder.