Collared Rate

How it works
May be used in conjunction with a capped rate and/or a tracker. Your payments are variable but will not fall below a set level (the 'collar' or 'floor').

Early repayment charge?
Not applicable.

Is it for you?
A collared rate may be part of another interest-rate deal which otherwise appears attractive. Understand that if the rate payable is only just above the 'collar' or 'floor' and you think rates will fall, you may not get the full benefit of a reduced payment.