Collar refers to the minimum rate of interest you’ll be charged and is applied by a lender to a variable interest rate.
This means if interest rates fall, the rate you are charged won’t fall below the lender’s ‘collar’ rate.
Collar refers to the minimum rate of interest you’ll be charged and is applied by a lender to a variable interest rate.
This means if interest rates fall, the rate you are charged won’t fall below the lender’s ‘collar’ rate.