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.