Mortgage Hedging

[Garrick]

I was wondering whether anyone can help with the idea of hedging a mortgage by buying some money market product which will effectively cap the interest rate on a variable product by paying the holder, should the rate rise above whatever base you set when buying it?

With the rates (and house prices) as low as they are now (and my deposit amount just about what I think I need to get what I want) I think, if the above is possible (and it should be), it is a good time to look at securing a mortgage and finally getting on the property ladder, particularly if I can effectively fix the rate in this manner.

Any ideas on how this is done? Whether any mortgage providers actually offer the service for you? Can a third party brokerage be contracted to provide a hedge?

All information highly appreciated.

[Enness Private Clients]

Interest rate caps are available and we arrange quite a few, typically over £500k. Fixed rates have plummeted recently and i would think would be better value than a variable mortgage and a cap.