Giraffe's new capped rate gives customers the best of both worlds

Giraffe Money has announced the launch of its new two year capped rate mortgage, designed to give customers the best of both worlds.

Giraffe prides itself on offering customers a great deal and this new capped rate mortgage is no exception. Over the past year, Bank of England Base Rate has risen four times to reach 5.5%, with many experts predicting that it will reach 6% by year end. The net result for customers is the cost of fixed rate mortgages increasing, with people having to pay a premium for the security of fixed monthly payments.

Alison Pallett, MD of Bank of Ireland Consumer Lending, said: "Our capped rates will give customers the best of both worlds. They allow Giraffe customers to benefit from low monthly payments from the outset, along with security of a mortgage cap.

Full details of the mortgage are:

5.59% 2 year discount capped at 6.09%
APR 7.7%
Minimum loan is £15,001 for purchase and £25,001 for remortgage
Maximum loan is £1m
95% LTV (up to £300K)
£999 arrangement fee
Higher Lending Charge paid by Giraffe
No extended tie ins
Early Repayment Charge: 3% until 31 May 2009.

Andrew Hagger from Moneyfacts, added: "Capped rates have started to come back in vogue in the current rising rate economy, and the latest two year offering from Giraffe Money represents good value for the consumer who is looking for a two year deal with a built in safety net. The current pay rate of 5.59% puts this mortgage at the top of the Moneyfacts capped rate best buy table as at 20 June 2007."