Welcome to CreditWisdom - Capped rate loans

 
Capped rate loans and mortgages allow you to benefit from drops in the interest rate but increases in interest rates above the level of the cap set will not affect your repayments above the capped interest rate.

As such, you benefit from drops in the base interest rate but not from increases in the interest rate. Like fixed rate loans, with a capped rate loan the rate of interest is not necessarily capped for the entire loan period.

Capped rate loans are most useful during periods when interest rate fluctuations are frequent in number and great in magnitude.
 
You should remember that if you do not keep up repayments on a secured loan or mortgage then your home or other security is at risk. Furthermore, CreditWisdom recommend that you seek professional advice prior to obtaining a loan or mortgage. The advice provided by CreditWisdom is meant to supplement professional financial advice and is in no way quantified as professional advice. CreditWisdom will not be held responsible for any losses of any sort, direct or indirect, whether real or perceived that you may incur as a result of visiting the web site.
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