| Discounted Variable Rate |
|
As the name suggests, to tempt new customers, lenders will offer a variable rate at a reduced initial rate or below their standard variable rate. After the agreed period, again one to five years typically, the rate reverts to the lender's standard variable rate. The interest rate during the discount period will go up and down in line with the standard variable rate. Disadvantages of this type of mortgage are obviously that the rate can go up and there are penalties for leaving early. It is possible that penalties may be charged for a period longer than the discount period. This is called overhang. Please visit our Mortgage Tools pages to see some examples of this type of mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage |
| For mortgages we can be paid by a fee, usually, £495 or by commission |