Capped Rate Mortgage
Suitable for clients who would like security competitive prices. The interest rate is capped during a certain period (7 or 10 years). If rates decrease, clients benefit from the full decrease and if rates increase, clients are protected by the cap (1%, 1.5% or 2%).
Fact Sheet
- Minimum amount
- 50 000€
- Maximum amount
- No Maximum
- Duration
- From 8 to 30 years
- Loan-to-value
- Up to 85%
- Interest Only available
- No
- Caps available
- +1%, +1.5%, +2%
Advantages
- Triple security: Capped rate, capped duration, constant monthly payments
- Choice from among 3 different caps
- No penalties in the case of early repayment
- You can borrow up to 85% of the property value
- Possibility to switch to a fixed rate at any time
In the event of a mortgage request for the purchase of a second home on the 30/11/2011 for 250 000 Euros for a term of 20 years. Capped rate +1 over 7 years, quarterly reviewed based on the Euribor 3 months. Total cost of the loan : 168 855.20 Euros, overall effective rate at 5.68% per year (life insurance included, without notary costs). Gives monthly repayments for 240 months of 1745,23 Euros.
Subject to approval, some restrictions apply