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Capped rate mortgages

Submitted by Mortgage Broker on Tue, 2006-08-01 12:02.

Capped rate mortgages set a limit that the rate of interest cannot exceed but otherwise will follow interest rates up and down.

The agreement period is usually for up to three years although sometimes longer. Sometimes, there is a downward limit too where the rate cannot fall beyond a certain point.

As with fixed rate mortgages, penalty fees can apply for paying off the mortgage early (known as an early redemption penalty).

Fixed rate mortgages relaunched by Skipton

Skipton Building Society has announced the relaunch of its fixed rate mortgages, including a range of longer term deals.

The group is now offering a number of seven-year mortgages, starting from a rate of 5.49 per cent, dependent upon the loan-to-value (LTV) ratio and completion fees. Skipton's range also includes ten-year fixed rate mortgages, starting with the same 5.49 per cent rate.