Capped Rate Mortgages

Capped Rate Mortgages | Capped Mortgage

Interest rate is variable with an upper maximum for a guaranteed period.

Capped rate mortgages are a compromise between fixed rate and variable rate mortgages. There is a fixed upper rate but if the base lending rate falls or remains stable, the interest charged on it remains in line with the base rate.

Capped rate mortgages are a safe option. For example, if you have a fixed rate mortgage and rates fall, your repayments would not fall in line with the decrease. With a capped rate however you would benefit from any fall in rates. If you have a discount mortgage and rates rise, your repayments would increase. With a capped rate your repayments do not rise above a certain level. With a capped rate mortgage however you cannot benefit from the best rates available as better deals can be found on fixed rate and discount mortgages.

To qualify for an Equity Release plan you will generally have to be at least 55 (or the youngest joint applicant 55). The amount of cash you will receive is dependent on the equity release produce chosen and the age and gender of the applicants.


World of Mortgages is authorised and regulated by the Financial Services Authority. Our FSA registration number is 430499. The FSA do not regulate certain mortgages.
The advice and/or guidance contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

We charge a fee usually 2% of the loan amount with a minimum of £2,999. Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured on it. The overall cost for comparison is 5% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.