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The maximum loan size is greater for a capped than for an uncapped loan
Text here explaining why larger loan sizes are available - FCA rules etc.
Capped loans tend to be more affordable than fixed or uncapped variable loans
Text here explaining why capped loans are more affordable. Borrower pays less
Capped loans can be created using any standard loan from any lender
You’re not limited to a single provider. If your broker or bank offers a standard loan, you can still add a cap or floor. That means more choice, better deals, and potentially quicker approvals.
(Duplicated to test height) You’re not limited to a single provider. If your broker or bank offers a standard loan, you can still add a cap or floor. That means more choice, better deals, and potentially quicker approvals.
The borrower can set the maximum rate or choose the fee or cashback amount
Text here explaining how that is done. Trade-off between the upfront fee payable by the borrower and the maximum interest rate of the capped loan. The higher the upfront fee, the lower the loan interest rate. The greater the cashback amount, the higher the loan rate. Logged-in users may use the capped-rate calculator (link) to fine tune.
The premium for the cap or floor can be paid in instalments over the loan
Text here explaining how that is done. Premium is normally paid upfront. Borrowers can spread the cost by adding it to the loan. The instalment payments add to the effective interest rate of the capped loan. Link to instalment calculator.
The pay-as-you-go method may also be applied to generate cashback
Text here explaining how that is done. The same principle applies to cashback. Borrowers may structure their loan to obtain cashback. Link to cashback calculator.
| Maximum rate | Minimum rate | |
|---|---|---|
| 2 years | 3.19% | -0.02% |
| 5 years | 3.85% | 0.64% |
| 10 years | 4.97% | 1.76% |