WE CAN ARRANGE YOUR MORTGAGE
Capped Rate Mortgage and
kind of arrangement is not seen as often as some might wish.
name suggests, the interest rate is capped (it has a ceiling on it )
so that the borrower's monthly payments will be calculated using
either the standard variable rate or the capped rate, whichever is
rate mortgage is normally capped for a set period of time of between 1
year and 5 years.
face of it, it looks like the borrower wins out no matter what
happens! In reality the cap is set at a level that the lender does not
expect the variable rate to exceed for too long. If they didn't do
this they could lose out quite heavily.
Capped Rate Mortgage
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