Discounted Rate Mortgages

Discounted Rate Mortgages Explained...

Discounted rate mortgages are usually based on the lender’s Standard Variable Rate (SVR) less a percentage, determined by that particular mortgage lender. They are usually some of the best mortgage deals around but they will go up or down depending on if the rate moves.

The mortgage deals on Discounted Rate products usually last between 2 and 5 years and there will be penalties to pay if you wanted to change the mortgage type within this fixed period.

However, for those looking for a cheap mortgage deal but can afford the additional extra, should the rates go up, then this maybe the mortgage product for you.

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Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Think carefully before securing other debts against your homes.