A capped rate mortgage is another type of variable rate mortgage, but there is an interest fee ceiling, or cap, beyond which your mortgage can’t rise for the selected period.
The mortgage rate is normally higher than that to be had on different variable and fixed rate mortgages, and the cap may be set quite high. However, the benefit is that you know your monthly mortgage will not increase above the capped interest rate.
This type of mortgage may also have a collared interest rate that the lender’s rate will not fall below.
To discuss the suitability of a capped rate mortgage for your property in the Antrim or Ballymena area, contact us today https://mortgageoptionsni.co.uk/contact-us/ your local independent mortgage broker
As a mortgage is secured towards your private home, it may be repossessed if you do not keep up the loan repayments.