Mortgages & Money
  Mortgage Guide

Discount rate mortgages

While this mortgage is a variable rate -fluctuating according to the lender's SVR - you benefit from a discount for a set period, usually a few years.

Pros:

  • Makes the first few years of mortgage repayments easier - useful if you need cash initially to cover other costs, or if you anticipate a higher income by the end of the set period

Cons:

  • Will usually incur penalties if you change mortgage during or after the discounted period
  • If interest rates rise, your repayments will follow suit


Disclaimer: This material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make any decisions. Always obtain independent, professional advice.

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