The interest rate is variable, but guaranteed not to exceed a certain level for a set time period (for example, several months or years).

Mortgage rate with ceiling.

An interest rate that is set for anything from a few months to several years. This means that if the interest rate went up above the set limit you wouldn't pay any more with a Capped Rate Mortgage. However, unlike a fixed rate your interest rate can go down. The lenders make their money by locking you into a capped rate mortgage for a minimum limited period and may include a penalty clause if you try to swap. Capital and Interest Mortgage More commonly known as a repayment mortgage your monthly mortgage repayments to your lender covers the capital, the actual money you borrowed, and the interest the lender charges you for borrowing the money.

Charge Charge Certificate