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CAPPED RATE
MORTGAGE

What is a Capped Rate Mortgage?

CAPPED RATE MORTGAGES

A capped-rate mortgage limits the amount of interest you can be charged on your monthly repayments, meaning throughout the term of the mortgage, the amount you pay will never go above a certain amount.
Similar in part to a standard variable rate (SVR), the interest can fluctuate depending on where the lender sets its rate.
In-line with the Bank of England base rate, if the Bank reduces the interest rate, the mortgage comes down, if it increases, it does go up, but without exceeding the capped amount.
Capped-rate mortgage fees can be higher than standard fees, and this is primarily because lenders are potentially sacrificing money, they would ordinarily make on the level of interest charged, so this is definitely a considering when determining the best type of mortgage for you.

We compare the deals offered by all UK lenders in order to identify the best option based on your exacting needs and requirements. If you opt for a capped mortgage, deals usually lasts between two to five years, and once the deal is over, you’ll be automatically moved onto the lender’s SVR.
At this point you can decide whether you want to move to another capped mortgage, take out a different mortgage or switch providers.
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Top House Mortgage Solutions Ltd
Head Office: Victoria House Lowside, Outwell, Wisbech, Cambridgeshire, PE14 8RE
Company No 06584434
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