Discount Rate Mortgages
These loans help reduce your monthly costs in the early years by setting your interest rate at a few points below the lenders Standard Variable rate (SVR). Your monthly payments may still move up but the difference between your rate and the SVR remains constant. Plus Points: The discount helps free money for other expenses, such as new furniture or redecoration just when you might need it the most. Points to Watch: When the discount period comes to an end, the loan will revert back to the SVR, which may be a big leap in what you are used to paying. Sometimes these loans carry early redemption fees, which will offset any benefit of savings made in the beginning if you should move or redeem your mortgage early on.
Below are the leading discount rate mortgage companies. We strongly recommend that you obtain quotes from several companies. It always pays to shop around!
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