Use our free mortgage service to compare rates from the UK's leading lenders.
We have access to mortgage rates from as little as 0.99%*
Compare Capped Rate mortgage rates against the mortgage market to see how much you could save?
| Low-Cost Payments | |
| £50,000 | from £287 per month |
| £100,000 | from £575 per month |
| £150,000 | from £862 per month |
| £200,000 | from £1149 per month |
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
A capped rate mortgage is a type of interest rate mortgage product that is commonly offered to homeowners. It provides a combination of the security of a fixed rate mortgage with the flexibility of a variable rate mortgage. This type of mortgage is especially beneficial for homeowners who are looking for stability and security in their monthly mortgage payments, but who also want the potential for lower interest rates if the market changes in their favour.
One of the main benefits of a capped rate mortgage is that it provides a cap on the interest rate, which means that even if interest rates rise, the borrower's monthly mortgage payment will not exceed a predetermined amount. This provides homeowners with peace of mind and allows them to budget more effectively. Furthermore, if interest rates do fall, the borrower's monthly mortgage payments will also fall, meaning that they can potentially save money on their mortgage.
Another benefit of a capped rate mortgage is that it provides greater flexibility than a fixed rate mortgage. With a fixed rate mortgage, the interest rate and monthly mortgage payment are set for a specified period of time, usually two, three, five or ten years. With a capped rate mortgage, the interest rate can fluctuate, but the monthly mortgage payment will not exceed the capped rate. This allows homeowners to take advantage of any decreases in interest rates without having to pay early repayment charges if they want to switch to a different type of mortgage.
A capped rate mortgage can also be a good option for homeowners who are concerned about the economic outlook and uncertainty in the housing market. This type of mortgage provides a level of protection against interest rate increases, while still allowing the homeowner to take advantage of lower rates if they occur.
Finally, a capped rate mortgage can also be a good option for homeowners who are looking to remortgage. This type of mortgage can provide a lower interest rate than a fixed rate mortgage, making it more affordable for homeowners who are looking to refinance their existing mortgage. Additionally, if interest rates do rise, the capped rate will provide a level of protection against rising mortgage payments.
In conclusion, a capped rate mortgage can provide homeowners with the best of both worlds – the stability and security of a fixed rate mortgage combined with the flexibility of a variable rate mortgage. It is a good option for homeowners who want to budget effectively, take advantage of lower interest rates, protect themselves against interest rate increases, or who are looking to remortgage.
Unbiased & Impartial - We search every remortgage lender in the UK. We're an independent website with no affiliation to any remortgage lender and therefore we don't promote any "special offers" from specific lenders.
Whole of Market - We search the whole of the remortgage market including exclusive quotes and rates sometimes available to remortgage brokers.
"He has kept me posted every step of the way and explained everything fully. There were no hidden costs. I would definitely recommend and will not hesitate to use them in the future"
"Very satisfied with the service received ! The advisor was excellent handling our remortgage and was very helpful with all questions we had and changing our term twice! Thanks again!"
Example savings based on borrowing £150,000 over 25 years, fixed for 10 years at 4.83%*, compared to an example mortgage rate of just 8.74% (this is the savings overs 10 years!)
*Example rate shown is a 10 year fixed rate mortgage from Lloyds Bank with an initial rate of 4.83% for 10 years; then reverts to SVR after intro period (12/09/2023). The rates shown are for illustrative purposes only, they should not be taken as any form of advice or recommendation. Actual mortgage quotes are based on individual circumstances.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
