Caps can be arranged to protect against an increase in the base/LIBOR rate over 3-4 per cent over a term of 3-5 years, offering the consumer the security of knowing the maximum cost of their mortgage payments.
The product will pay out at any time that the base rate is above the agreed level, allowing the borrower to continue to benefit from low base rates.
The interest rate cap itself is purchased with an up front premium and is owned by the borrower.
3DCM will offer a referral fee to brokers for introducing business.
To purchase, consumers must open a current/savings account with the high street bank offering the product.