Discounted Variable Rate Mortgages offer a discount
of a lenders Standard Variable Rate. Generally the shorter the discount
period the larger the discount, though discounts can be given to as
much as 5 years.
The discount can vary from 0.5% to 4% be aware though of the tie in
period on higher discounts
Rate Mortgage Pros
a genuine discount over the standard rate which could save you money
rates fall you will feel the benefit in your payments
Rate Mortgage Cons
can go up as well as down so harder to budget and you may prefer the
stability of a Fixed Rate Mortgage
are usually arrangement fees
are usually redemption fees of anything up to six months interest
if you decide to redeem your mortgage early. If your considering moving
within the discounted rate period make sure your mortgage is portable.