Capped Rate
With a capped rate mortgage your payments are linked to the Bank of England base rate but are guaranteed not to go above a certain level.
Advantages:
- If mortgage rates go down your payments will reduce accordingly.
- You know how much to budget for in the future, as you will know what your maximum payments are.
Disadvantages:
- The capped rate may never be reached and you might never benefit from the arrangement.
- Normally you will have a penalty for early repayment.
For truly unbiased independent financial advice from an FAC adviser, feel free to call us in confidence on 01726 814935
We charge a fee for mortgage advice. Our typical fee is £500
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.