FAQs

• 1. What is an interest rate cap?
• 2. What are the advantages of caps?
• 4. What are the risks of a cap?
• 4. How are caps priced?
• 5. What happens when the Benchmark Rate is equal to or lower than the Cap Rate?
• 5. What happens to a cap if the borrower repays their loan early?
• 6. What happens when the Benchmark Rate is higher than the Cap Rate?
• 6. Can a fixed rate borrower buy a cap?
• 7. Can an interest rate cap cover an amortising loan structure?
• 8. Can I buy a cap on a Discount Mortgage?
• 10. Can I buy a cap on a Tracker mortgage?
• 10. Can I buy a cap on a Standard Variable Rate (SVR)?
• 12. Can I buy a cap that starts in the future?
• 13. Is a cap the same as a fixed rate?
• 14. What is a capped loan?

• 1. What is an interest rate floor?
• 2. What is an adverse floor?
• 3. Why would a borrower buy a floor?
• 4. What are the risks of buying a floor?
• 5. What are the risks of selling a floor?
• 6. How can floors be used by fixed rate borrowers?
• 7. How are floors priced?

• 1. What is Cap-It?
• 2. What is a certificate?
• 3. Am I eligible to buy a certificate?
• 3. What is the Eligibility Test?
• 4. How are certificates protected?
• 5. If the SPV became insolvent, would certificate holders have recourse to the SPV’s underlying counterparties?
• 6. Is a Cap Certificate the same as an interest rate cap?
• 7. Can I buy a certificate for my company?
• 8. What is the minimum amount that can be protected by a certificate?
• 9. What is the maximum duration of a certificate?
• 10. What are the risks of a Cap Certificate?
• 10. Can certificates be traded or transferred?
• 11. Can I redeem my certificate?
• 12. What if I repay my loan early?

• 1. How do I change my password?
• 2. Can I delete my Account?
• 3. How do I make a complaint?
• 4. How is my personal data protected?
• 5. How can I make a Subject Access Request?