Capped rate mortgages are very similar to fixed rate mortgages, in so much as there is a maximum interest rate set for a given period of time. The rate you pay will not exceed this capped rate.
In other words the rate you pay is capped at a certain level and despite interest rate rises the maximum amount you pay will be the capped rate
Unlike fixed rate mortgages, however, should the interest rate fall below the rate that you have your mortgage capped at, the rate you pay will track the interest rate downwards reducing the amount you pay.
Capped rate mortgages provide you with the best of both worlds. They protect you from rises in interest rates, whilst allowing you to benefit from any falls in rates.
As with fixed rates, there are normally arrangement fees for this type of mortgage and sometime the amount of the fee can outweigh the benefits of having the capped rate. It is important to seek advice and this is where I can help. For more information and to find out whether a capped rate mortgage is right for you call me or fill in my online enquiry form.
I take great pride in the service I provide and do everything I can to make sure your mortgage is arranged as swiftly, efficiently and professionally as possible.
In short, I offer a straightforward, personal and friendly mortgage advice service which you can trust.
Most of my business comes from word of mouth and recommendations and I hope that, should I arrange a mortgage for you, you would recommend me to your friends and family.
My office is situated in Plympton, Plymouth so if you live in the Plymouth area a meeting with me for fee free mortgage advice is only a phone call away.