Ray Boulger of Charcol comments: "Most fixed rate mortgages now look expensive when compared to discount and tracker deals. Capped rates are beginning to offer better value, although good deals are still few and far between.
"This cap has an initial discount with a current pay rate of 4.24%. There are some cheaper discounts on the market but this rate is significantly cheaper than the best fixed rates for a comparable period. The mortgage offers a level of repayment security for those borrowers who would prefer it, by trading off part of the discount for a cap. It will appeal to borrowers whose basic preference is for a discount, but are nevertheless still nervous about interest rates."
Penalties apply during the discounted / capped period only and after this borrowers should review their options.
Borrowers should contact 0800 71 81 91 or visit www.charcolonline.co.uk
