Capped Rate Mortgage

This is a mortgage that is guaranteed not to rise above a specific rate (the ‘cap’) within a set period.

Unless this is combined with another rate, such as a Discount or Tracker, the Lender’s SVR will be charged if it is lower than the capped rate; if it rises above this ceiling the rate charged will remain at the capped level.

There are often early repayment charges applicable if the loan is repaid within the capped period. Please also see Fixed rate Mortgage

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