The return of capped rates – Birmingham Midshires

Julia Harris, Mortgage Analyst at Moneyfacts.co.uk, comments: “A few weeks ago we reported that capped rate deals were on the way out, so it was a surprise to see these new products launched from Birmingham Midshires.

The return of capped rates – Birmingham Midshires

Two year deal currently at 5.34% with a fee of £699, capped at 6.09%
Three year deal currently at 5.40% with a fee of £1299, capped at 6.15%
Products available via intermediaries only, and self cert options available

“The current pay rates are not uncompetitive to those available on tracker deals, but substantially lower rates can be found on discounted deals. For anyone looking for complete protection against rate rises, fixed deals at similar rates are still around.

“Perhaps this is a sign of uncertainty, offering protection against substantial rises in the future, but also allowing borrowers to benefit from any rate reductions. But with the caps set 0.75% above the pay rate, and if the current market expectations hold, it is unlikely in the short term that this will ever be hit.”