Capped variable rates

Explanatory Text

Capped variable rates are for borrowers preferring to pay less if interest rates fall without paying more than an agreed maximum if interest rates rise. A capped variable rate can be created by combining a fixed rate loan with a floor. The capped rates created by the combination depend on the fixed loan rate, the strike rate of the floor and whether the floor premium is paid upfront or in instalments. The table below shows the capped variable rates that can be created using the selected fixed rate loan.

Data last updated at 17th May 2024 11:00

Selected loan

Fixed rate

Variable reference

Premium payment