Discounted Rate Product
Discounted rate mortgages are a type of variable rate mortgage, where the interest rate is linked to a set percentage below the lender's standard variable rate (SVR) for a fixed period of time. This means that the interest rate you pay on your mortgage can fluctuate up or down, depending on the lender's SVR.
During the discounted rate period, borrowers benefit from a lower interest rate compared to the lender's SVR. This can lead to lower monthly mortgage payments, making it an attractive option for those who want to keep their initial costs down.
It's important to note that discounted rate mortgages are not fixed rate mortgages, so the monthly payment may change during the discounted period. This can make budgeting more challenging, as borrowers will need to be prepared for possible fluctuations in their monthly mortgage payment.
After the discounted rate period ends, borrowers will be moved onto the lender's SVR, which may be higher than the discounted rate they were previously paying. It's important to review your mortgage options at this point to ensure that you are still getting the best deal.
At Mortgage321, we understand the importance of finding the right mortgage for your individual needs. Our expert advisors can help you compare a range of discounted rate mortgages from a variety of lenders, to find the one that's best suited to your circumstances.
Our advisors can guide you through the mortgage process, from application to completion, providing you with support and advice along the way. With access to a wide range of mortgage products and lenders, we can help you find the right discounted rate mortgage for your needs.
Contact us today to find out more.