The mortgage interest rate will not exceed a certain value during a certain period of time, although it will fluctuate above and below the current level. Some capped products will have a ceiling and a floor between which the rate payable may move; such loans may be known as cap and collar mortgages.

The type of mortgage you choose will be dependent on your priorities and what you think is going to happen with interest rate. If you think that the base rate is going to go down or remain fairly stable it may be wise to choose a tracker rate. If you think rates are going to go up and borrowing become more expensive then a fixed rate might be more appropriate.

If you need clarifcation about the best type of mortgage product for you then speaking to a mortgage broker might be a good idea.