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Discount Mortgages

Discounted mortgages offer borrowers the opportunity to pay a discounted interest rate for a set period of time. Discounted mortgages guarantee you’ll pay a set discount below a lenders standard variable mortgage rate for an agreed number of years, so you get the benefits of paying a lower monthly amount.

The advantage of a discount mortgage is that if the lender drops their standard variable mortgage rate, the borrower would get the benefit of any rate drop in the form of lower payments. However, should the lender decide to increase their standard variable mortgage rate the borrower's mortgage payments could increase.

As with a Fixed Rate mortgage you may be tied in by the lender and expected to pay an Early Repayment Charge should you pay the loan off before the end of the discount period.