Capped Mortgage
This is where the interest rate is guaranteed not to rise above a set level for a specified period of time. If the lender's Standard Variable Rate falls below the capped rate then this will apply, for example if your capped rate is 4.75% and the lender's interest rate is 5% then your pay rate is 4.75%, however if the lender's interest rate decreases by 0.5% to 4.5% then your pay rate will decrease to 4.5%
