What is a Capped rate ?

Posted by admin On December 24th 2020

  • The interest rate is variable within a specified upper limit (the cap).
  • This allows borrowers to budget within set parameters.
  • Borrowers can benefit from falls in interest rates (as far as any collar limit set, i.e. a minimum level).
  • Products that also have a specified lower limit are called ‘cap and collar’ mortgages.