Meaning of “capped rate” in the English Dictionary

"capped rate" in Business English

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capped ratenoun [ C ]

uk us

FINANCE, PROPERTY an interest rate on a loan that will not rise above an agreed rate for an agreed period of time:

A capped rate guarantees your mortgage will not rise above a certain level.

capped-rateadjective [ before noun ]

uk us

FINANCE, PROPERTY a capped-rate loan is one with an interest rate that will not rise above an agreed rate for an agreed period of time:

a capped-rate mortgage/loan
If the home-buyer wants security against rising rates there are many capped-rate deals around.

(Definition of “capped rate” from the Cambridge Business English Dictionary © Cambridge University Press)