Is a capped-rate mortgage right for you?

The number of capped-rate mortgage deals on the market has increased from just one to 39 over the last two years, according to figures from data provider Moneyfacts. Mortgage lenders offering deals of this kind include first direct and Woolwich from Barclays.

However, the interest rates on capped mortgages are typically about 0.50 percentage points higher than equivalent variable rate deals, so are they worth the extra cash?