| Discount Rates
As the mortgage market is so competitive,
many lenders offer discounted rates for both purchase mortgages
and people remortgaging to them.
Discounts are normally 1% or 3% off the lenders
standard variable interest rate and can last for a period
from one to three years.
When there are base rate changes the discounted
rate still changes but will still reflect the discount originally
given.
One disadvantage is that, should you decide
to move your mortgage or remortgage during or shortly after
the discount period, you will normally be subject to early
redemption penalties which can be equal to or more
than the benefit you have received.
Also available in this section:
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