The MSE FTB mortgage guide says the following about "capped" mortgages. I've not found any further information about this in my searching so far, and I'm interested in this kind of deal. Can anybody here help point me to more information?
I'm not yet at the stage of going to a broker, I'm still just "doing the knowledge" (that's what it feels like anyway).
I'm not yet at the stage of going to a broker, I'm still just "doing the knowledge" (that's what it feels like anyway).
Quote:
|
A hybrid option capped deals Part variable rate, part fixed. The rate you pay moves in line with the base rate or SVR but there is an upper ceiling or cap which gives you some protection. Just as a collar sets a minimum rate so a cap sets a maximum rate above which your payments will not go. As you might expect, these mortgages tend to be popular when people are frightened rates might soar. |