Capped rate remortgage

Capped Rate Mortgage




Capped rate remortgages are similar to Fixed-rate remortgages in many ways. When choosing a capped rate remortgage, the borrower will pay a rate of interest directly linked to the lender Standard variable rate, but this will be “capped” at a maximum. Therefore, if interest rates increase, so will repayments on the remortgage but only up to the agreed capped level. At this point, if the SVR continues to climb, the borrower will only pay up to the accepted maximum.

Capped rate remortgages, like all remortgage types, have pros and cons. For instance, they offer borrowers protection if the SVR exceeds a certain level. Capped rate remortgages typically last for a fixed period, although some can last for the life of the remortgage. Any decreases in lender SVR will also be passed on the borrower. Some capped rate remortgages have a discounted introductory period and can become more expensive when this expires.




Mortgage

MORTGAGE ENQUIRY FORM

If you need help with arranging finance for your first home, moving to your next one or remortgaging your current property.

Please enter the details below to submit your FREE mortgage enquiry and an FCA regulated Independent Mortgage Broker will contact you as soon as possible to discuss your requirements.

Thank you for your Mortgage enquiry

An independant FCA Regulated mortgage broker will contact you shortly to help source the best available mortgage for your circumstances.

Homebuy Guides

SPEAK WITH AN INDEPENDENT MORTGAGE SPECIALIST

  • FREE with no obligation
  • Discuss your requirements
MAKE AN ENQUIRY

Advertisements

Make a FREE no obligation enquiry with an independant mortgage specialist about your mortgage now

Third Party Ads