Capped Rate Mortgages - Cheap Mortgage Deals

Capped Rate refers to an interest rate that is set for anything from a few months to several years. This means that if the interest rate goes up above the set limit you would not pay any more. However, unlike a fixed rate, your interest rate can go down. The lenders make their money by locking you into the mortgage for a minimum limited period and may include a penalty clause if you try to remortgage through another lender.