2 or 5 year fix

MortgageMamma

Hi Mark

Yep it is a good product and yes its been around for a little while now. It is competitive in todays market as are the products offered by the likes of abbey and accord. I tend not to concrentrate on the initial rate of the product but the position of the cap, and then an overall comparison of the maximum possible cost (including all fee's) over the incentive period, assuming this is at the highest level of cap. I then compare that to the best fixed rate I can get over the same period ad most of the time you find the differences are very small. I won't go into details with specific products as I don't believe that highlighting lender names and rates/products on here is beneficial for any of the DIY'ers as its quite easy to get it wrong. But my point is the Capped product, if competitive enough is a good product for those who wish to know the max they can pay and take advantage if rates fall. The more people that take them and the more brokers promotoe them the more lenders will take notice and start marketing more of them which can only be a good thing for homeowners. I have an editorial going into the local newspaper and property magazines early september which basically says exactly the same thing.