Mortgages Expert Guide Discounted Rate Mortgage

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

Discount Rate Mortgage Pros

• You recieve a genuine discount over the standard rate which could save you money
• If interest rates fall you will feel the benefit in your payments

Discount Rate Mortgage Cons

• The rate can go up as well as down so harder to budget and you may prefer the stability of a Fixed Rate Mortgage
• There are usually arrangement fees
• There 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.
  

Best 2 Year Discounted Rate Table

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