Discounted Mortgage Rates

The discounted or discount mortgage simply offers a reduction off the lenders standard variable rate. This reduction normally only lasts for a given period such period tend to be 1 - 5 years although terms vary. Not trackers as they do not track the base rate.

Some discounted mortgages offer a stepped discount system. The rates may be reduced by 1% in the first year 1.5% in the second year and 2% in the third. This is designed to encourage you to stay with the same lender.

Unlike it’s variable sister product discount mortgages tend to have and arrangement fee or booking fee. Early redemption charges are likely to be present to deter you from moving within the interest reduction period.