Capped Rate mortgages

The advantages of the capped rate mortgage is that when interest rates are likely to rise, they offer protection for borrowers against repayments going over a certain level. This can be seen as being almost as attractive as a fixed rate mortgage. Having a capped rate mortgage can make it easier to budget when you know what the highest amount your mortgage payment could be. Having a capped rate can also allow you to enjoy the benefits of any cuts made to the lender's standard variable rate (SVR). Whilst providing peace of mind capped rates are generally more expensive than fixed or discounted rate products.