Mortgage Refinancing

Loan Type :
Description :
Credit Profile :
Region :
Secured Loans Secured Loans
Secured Loans is when the borrower takes a loan against some of his asset. Incase due to some reason, the borrower is unable to pay back........
Personal Loans
If you are looking for personal loans to meet your urgent expenses then landed to the right destination. We provide you best loan deals........
Car Loans Car Loans
If you are looking for car loans to fulfill your dream of exclusive car then landed to the right destination. We provide you best car loan deals........
Main Page » Services » Capped Rate Mortgage

Capped Rate Mortgage UK

A mortgage which guarantees the interest rate charged will not rise above a certain level. But it may fall in line with variable rates. This kind of arrangement is not seen as often as some might wish.

As the name itself gives the impression, the interest rate is capped (it has a rider on it ) so that the borrower's monthly payments will be calculated using either the standard variable rate or the capped rate, whichever is lower. A capped rate mortgage in normal conditions is capped for a set period of time of between 1 year and 5 years.

This type pf mortgage gives the the idea that borrower wins in such kind of arrangement but it is the cosmetic look reality is quite different! In reality the cap is set at a level that the lender does not expect the variable rate to exceed for too long. If they didn't do this they could lose out quite heavily. In general notion it seems that a capped rate mortgage puts a maximum limit on the interest rate that you have to pay. You therefore gain the security of having a 'ceiling' or upper limit to the amount that the lender can increase the interest payable on your mortgage.

This period of capped interest is for a specified period only; typically between one and five years. At the end of the specified period your mortgage will usually revert to a variable rate.

However, it is possible to find a capped rate mortgage that can last for the entire life of the loan. Although this arrangement initially sounds attractive, some capped rate mortgages also have a 'collar' or lower limit below which the interest on your loan cannot fall. Just complete the analysis of capped loan mortgage and allow us to serve you with best available option in the market. For any related clarification contact us through any available mode of communication.



Mortgage Refinancing
Loans : Mortgage Refinance | Unsecured Loans| Car Loans | Secured Loans | Home Improvement Loans | Business Loans RSS
Tools : Mortgage Tools | Mortgage Help | Mortgage Interest Rates | Mortgage Calculator | Mortgage Advice | Mortgage Rate Quotes
About Us : Home | About us | Contact us | Sitemap | Disclaimer | Privacy Policy | FAQs | Glossary | Apply Online
Personal Loans Car Loans