Why choose capped mortgages?

Some of you may be wondering why choose capped mortgages in light of the Halifax's recent announcement of an increase to their SVR mortgage cap.

On this point it is important to note that the Halifax are in a very unique position. They are the only lender offering an SVR cap where the mortgage conditions are allowed to be changed.

They are able to do this by giving a month's notice to borrowers. Those who are then affected by the change are given three months to redeem their mortgage without paying an early repayment charge.

The other major lenders who offer capped mortgages such as the Nationwide and Lloyds TSB do not have any such provision for a change in the terms written into their contracts. These lenders therefore do not have the opportunity to increase their mortgage cap.

With a capped rate deal your lender will set an upper cap limit. The mortgage rate will then rise and fall in line with your providers SVR, but it will not rise above the agreed maximum cap set at the beginning of the mortgage term.

Capped mortgages are a mix of a fixed rate mortgage deal, a standard variable rate and a tracker mortgage deal. Capped rate mortgage deals are attractive to those who want to benefit from the low Bank of England base rate while being secure in the knowledge that their mortgage rate will not rise above an agreed level for a set period of time.

At Deal Direct we are familiar with different mortgage providers lending criteria and are best placed to source you the right deal.

 To get the best capped mortgage deal available in the UK today.

Fill in our enquiry form opposite or telephone 0800 048 8828.