Information
about
Capped Rate Mortgages
| Home |
| Get a Quote |
| Additional Products |
| Mortgages |
| Mortgage Payment Protection |
| Income Protection |
| More Information |
| Life Insurance |
| Mortgage Life Insurance |
| Critical Illness |
| Payment Protection |
| Income Protection |
| Mortgages |
| About Moneynet |
| Disclosure Document |
| About Us |
| Sitemap |
| Directory |
| Network Websites |
In practice, the Capped Rate Mortgage basically mixes the fixed rate mortgage concept with a standard variable rate mortgage.
The capped rate on a Capped Rate Mortgage is always valid for a set number of years, usually five. At the end of that period the mortgage usually reverts to standard variable rate terms.
The Capped Rate Mortgage offers a measure of protection for borrowers in periods of increasing interest rates. This means that during the capped period, their monthly mortgage repayments cannot exceed a set value.
Thus, Capped Rate Mortgages have similar attractions to a fixed rate mortgage - although interest on a fixed rate mortgage is usually a good deal lower than a capped rate. But be aware that you may face redemption penalties, during both the capped period, and also overhanging after the cap rate is finished.
Therefore, if a Capped Rate Mortgage interests you, you should consult with a professional mortgage adviser. Ask for a quote now and we’ll organise for a Mortgage Adviser to phone you with the next 24 hours.
Secured loans