Interest Rate Caps Explainer
Interest rate caps are used by borrowers to reduce risks. This article explains the mechanics, benefits and risks of caps and how caps apply to borrowers with fixed or variable rate loans. An interest rate cap acts like insurance against high interest rates ...
Forward starting caps: a new option for fixed rate borrowers
View as pdf This article explains how a forward starting cap can be used extend the protection currently provided by an existing fixed rate loan. Caps are a new hedging option for most people, having previously been available only to larger business borrowers. Background Inflation in the UK hit a ...
A Guide to Early Exit Costs
Early Exit Costs is an umbrella term covering: 1) the Early Repayment Charges applicable to fixed rate residential mortgages; and 2) the Market Break Costs applicable to fixed rate business loans and other varieties of tailored business loan. Early Repayment Charges (ERCs) ERCs apply to most fixed rate residential mortgages. They are the penalty fees payable by borrowers making early ...
