Capped rate mortgages
Interest rates for capped mortgages will not rise
above a certain maximum level. This normally applies for a fixed period.
Similarly, a 'collared' rate mortgage will not fall
below a minimum limit.
Pros:
- Offers protection from rises in interest rates,
but you could still benefit from a drop in interest rates
- You can budget, knowing the maximum you will pay
for a set period
Cons:
- Fixed rate may be lower than the cap, and if interest
rates fall below the collared rate, you will not benefit
- Check for penalty clauses. You may be tied to the
lender's SVR after the capped period expires
Clinics & treatments
Medic8® Guides
Health centres
Medic8 subscribes to the HONcode principles of the Health On the Net Foundation.
|
