What Are Capped Rate Mortgages?
Capped rate mortgages ensure a fixed ceiling on the interest rate you pay over a specific period of time. They are usually higher than fixed rate mortgages because you pay for the security of knowing your mortgage repayments will never go beyond a certain level no matter what the changes are in general interest rates. They are a good way of budgeting and can save you money if the variable rate soars.
