Definitions for **"Capped Rate"**

A capped rate is a mixture between a fixed rate and a variable rate. The interest rate is guaranteed not to rise above a set level within the capped rate period but if the normal variable mortgage rate is below the capped rate then the variable rate is charged. This gives the 'best of both worlds' as the interest rate can fall but will not rise above the capped rate. However, the level at which the cap is fixed is usually higher than for a fixed rate mortgage for a comparable period of time. The lender will normally impose early redemption penalties if the mortgage is redeemed within the first few years (see Redemption Penalties ).

A capped rate sets a maximum limit on your mortgage or loan repayments More Car Insurance - Car Insurance is a legal requirment for all drivers More

a rate of interest with an upper limit but which becomes variable if the lender's standard variable rate falls below that level.

Usually for a set number of months/years where the interest rate can go up and down but there is a maximum (capped) interest rate which it can not go above.

Your interest rate won't go above a certain level the 'cap' during the capped rate period. This means that you can enjoy any rate reductions, yet have the comfort of knowing that your rate won't go above the cap.

A mixture of fixed and variable rate. The lender will cap the mortgage at an agreed rate, if interest rates remain above this rate, you will be charged the capped rate, if rates drop below the capped rate, your rate will also drop. Again similar to fixed rates, there may also be a redemption period.

A mortgage that sets a maximum rate of interest that a lender can charge for a certain period of time.

A mortgage which allows your interest rate to climb or drop no higher or lower than a specified level, usually for the first few years of the loan

An arrangement with your bank or building society which provides an upper limit to the interest rate which can be charged. If the standard variable rate is lower than the upper limit you will be charged the lower rate but if the standard variable rate is higher than the capped rate you will only be charged the agreed rate. This is usually offered for a fixed term and allows you to budget your finances. At the end of this period the interest rate will revert to the standard variable rate at that time.

Capped rates of interest are just that. The interest on your loan can not increase above the capped rate a predefined interest rate, e.g 6.5%. Your rate will be variable and so if interest rates fall so does your interest rate but if rates increase you know that they won't increase above your cap rate.

An interest rate that is set for a period of months or years, and is applied only if the standard variable rate exceeds it so your repayment rate wont rise further than the cap.

This is an arrangement where your mortgage rates will not rise above a specified amount regardless of how high interest rates rise.

This is a mortgage where a maximum interest rate is agreed which the rate cannot go above. This deal lasts for a set period of months or years. Should the variable rate go below the maximum, the pay rate falls with it.

The interest rate charged on this type of mortgage will not rise above a certain level " the cap" within a certain period. Charge. A charge against a property means that there is a debt. Usually the main charge will be that of the mortgage lender. However individuals can place charges against a property following a County Court Judgement. Before buying, a conveyancer should check against the Land Registry's Charges Register for all charges, as the new owner will be liable if they are not discharged prior to sale.

The advantage of this is that the interest will not exceed an agreed amount - the "cap" - but will drop if rates fall below that amount. However, there may also be financial penalties attached if the mortgage is redeemed early.

The mortgage interest rate will not exceed a specified value during a certain period of time, but it will fluctuate up and down below that level.

A rate of mortgage interest that has an upper limit, or â€˜capâ€(tm), of interest set from the outset for a set period of time. For example, the cap might be set at 6% for 2 years, which means that, even if rates go higher than 6%, this is the maximum you will be charged during that 2 year period.

Consumer safeguards which limit the amount the interest rate on an adjustable rate mortgage can change in an adjustment interval and/or over the life of the loan.

The maximum rate of interest you can pay on a mortgage during a set period of time.

An interest rate charged for a set period of months or years which fluctuates with the variable rate but there is a maximum (capped) interest rate which it cannot go above.

During a specified period, a capped rate mortgage will set out a maximum rate of interest that the lender can charge.

The maximum rate a borrower will pay with the added benefit that should the lender's Standard Variable Rate fall below the capped rate, interest will be charged at the lender's Standard Variable Rate for the period of time that the lender's Standard Variable Rate is below the capped rate.

This is a mortgage where the lender agrees that the interest charged will never exceed a specific percentage. This deal lasts for a set period of years. After the set period, the rate usually reverts to the lenders standard variable rate. During the capped period, the interest charges can move up and down with the lenders interest rate - but cannot exceed the capped rate.

Although the mortgage rate can move up and down there is a maximum rate above which it cannot go above. Usually for a set period of time.

This means that your interest rate charged on your mortgage payments is guaranteed not to go above an agreed rate of interest during a fixed term.

1. Like a fixed rate, but the rate is guaranteed not to go above a certain level for a set period of time. It can, however, move downwards. 2. An arrangement that caps your mortgage rate for a specified period of time. On the first day of the month following expiry of the capped rate period, the interest rate will change to the then prevailing Standard Variable Rate.

An interest rate charged on a mortgage where there is a guarantee from the mortgagee that the rate will not exceed a certain amount usually for a set period of 1 - 5 years but which will reduce if the standard variable rate falls below the capped rate.

These mortgages have a ceiling above which your payments will not rise.

The rate applied to Honeymoon (Introductory Loans) which is capped at a rate that will not rise above the prevailing Standard Variable Rate, but may fall.

A capped rate loan has a fixed ceiling on the interest rate for a period of time, above which your rate will not go. However, if the base ratefalls, your rate can still fall with it.

An agreed variable interest rate, which usually only applies for a specific period (typically between 1 and 5 years). During the set period the rate may rise or fall in line with the market but it will not rise above the 'cap'.

An interest rate with a pre-determined ceiling - usually associated with a variable-rate mortgage.

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