Ambergate Independent Financial Services

A capped rate mortgage is a variable rate mortgage, with a specified maximum interest rate that can be charged for a set period. In other words, whilst your monthly payments will be affected by movements in the mortgage rate, you will know the maximum rate that could be charged during the set period and hence be protected from rates higher than the maximum limit. (A collared rate is a specified minimum rate, hence a capped and collared mortgage will be a variable rate mortgage, where the rate will be limited between a known minimum and maximum).

At the end of the capped rate period, your mortgage will revert to a variable rate. This may be higher than the rate you have been paying. In some cases, the lender may offer you an alternative rate. Please refer to your mortgage offer for details.

Some capped rate mortgages can be continued if you move house during the term of the offer rate. Please refer to your mortgage offer letter to see if this applies.

Your home is at risk if you fail to ensure that your mortgage loan is repaid by the end of its term. It is your responsibility to ensure that your mortgage is repaid on time.

If you have an interest only mortgage, it is also your responsibility to ensure that you have an investment plan in place to repay the mortgage debt.