understanding financial jargon
Capped Rate Mortgage
A mortgage which has a maximum interest rate for a given period is called a Capped Rate Mortgage. The interest rate you pay will not go higher than the agreed capped rate during the period, but may rise or fall beneath the capped rate. At the end of the period the rate reverts to the lenders standard variable rate. A variant, called 'Cap & Collar' is where you only pay an interest rate between a maximum (the Cap) and a minimum rate (the Collar or 'floor').
What to do if you need more help
If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.
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