We don't like caps linked with SVR

We don't like capped rates linked to a lender's SVR unless the cap is at a competitive rate compared with fixed rates for a similar period.

With some of these capped rates there is little chance of the pay rate ever falling below the capped rate but they offer borrowers the illusion that their interest rate may fall.

In reality, borrowers are paying a premium over a fixed rate for a mortgage which is little more than a disguised fixed rate, enticing borrowers with false hope.

This hope is further encouraged by some promotions for these deals that mislead by words such as "your rate will fall if interest rates do". Sadly, it is not always that simple.