This type of mortgage gives a discount on the lenderís standard variable rate for a specified period. This means that whether the interest rate goes up or down, you will always be paying a reduced rate for the length of the deal.
If interest rates are falling these deals can be very good news. Likewise, when rates rise you will always be paying less than borrowers on the SVR.
Discount rates are worth considering if you think the rate will average out below the fixed and capped-rate products in the market. Be warned, though, discounted deals can have stringent redemption periods attached.
As independent mortgage advisers we have access to thousands of mortgage products from hundreds of mortgage lenders in the UK. We offer a nationwide service and can help you whatever your credit history.
It costs you nothing to see what products are available and what your options are. We will direct you to the best deals for your circumstances and requirements.
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Your home may be repossessed if you do not keep up repayments on your mortgage
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