This offers you an interest rate with a maximum rate for a set period of time. This means that during the capped period, your interest instalments will not rise beyond the capped amount even if interest rates increase sharply.
Plus Points: While you are protected from increases in rates, you will benefit from any falls in interest rates.
Points to Watch: Administration or application fees can add to the cost of the mortgage.
2 standard repayment methods for Fixed Rate Mortgages:
