Agreed for a fixed period of time with an upper limit on the interest rate. If the standard interest rate is lower than the fixed upper limit the lower rate is charged, when the standard variable rate is higher the agreed rate is charged.
One where the rate of interest charged cannot exceed a specified figure, usually during a fixed period of time or to a certain date. After the capped period the mortgage rate charged normally reverts to the lender's standard variable rate.
the interest rate of this type of mortgage is guaranteed not to rise beyond a designated level for a certain period of time.
A mortgage product which guarantees the interest rate charged will not rise above a certain level for a set period of time. However, if the Standard Variable Rate goes below the capped rate, the Standard Variable Rate will apply. Once the set period of the capped rate has ended, the Standard Variable Rate of interest will be charged