discounted rate mortgages
General Notes
Page Down
  

Need help to understand Mortgage Jargon ?


We have put together some mortgage help pages  

We hope you find this of use. Good Luck !  

This page -    discounted rate mortgages

Credit Cards
Loans
Insurance
Mortgages
Utilities







  UK Discount Rate Mortgages

A discount mortgage has the discount applied to the lender's standard variable rate for a set period - usually from six months to several years. As the lender's standard variable rate moves up and down, so the discounted rate moves up and down by the same amount, with the differential between the two remaining the same.

Advantages of Discount Rate Mortgages

  • You can benefit from a lower interest rate in the first few years, freeing up money for furnishings, carpets or whatever else you want.

  • You can benefit from a fall in the Bank of England's base rate when it results in a subsequent fall in the lender's standard variable rate.
Disadvantages of Discounted Rate Mortgages

  • Early redemption penalties will almost certainly apply, which may also extend beyond the end of the discounted period. This means you will be unable to change your mortgage during the 'early redemption penalty period' without paying a fee, which may be up to the value of six months mortgage repayments. So, you may be trapped in an uncompetitive rate once the interest rate reverts to the lender's standard variable rate.

  • You will normally have to pay an application fee when arranging your discount mortgage.

  • At the end of the discounted period your mortgage payments will suddenly increase as the mortgage reverts to the lender's standard variable rate.


    NEXT - remortgages

    Mortgages explained | About mortgage types | repayment mortgage | endowment mortgage | interest only mortgages | how much can I borrow ? | mortgage payback rates | variable rate mortgages | fixed rate mortgages | capped rate mortgages | discounted rate loans | remortgages | first time buyers | buy to let mortgage | commercial mortgages | mortgage costs | glossary of terms | mortgage FAQ's |

    Latest Mortgages News

    06:08 AM Fixed mortgages: new lows for 15-, 30-year loans - Christian Science Monitor

    USA TODAY
    Fixed mortgages: new lows for 15-, 30-year loans
    Christian Science Monitor
    Fixed mortgages for 30-year loan dips to 3.79 percent; 15-year loan averages. 3.04 percent. But record low rates on fixed mortgages have not ignited home sales. By Marcy Gordon, AP Business Writer / May 18, 2012 A San Jose, Calif., home sits empty as ...
    30-year mortgage rate falls to record 3.79%HeraldNet
    Mortgage rates fall to another record lowUSA TODAY
    30-year mortgage rate falls to record 3.795Chicago Sun-Times

    all 318 news articles »
    05/18/2012
    08:37 AM Get ready for sharp rise in mortgage rates, warns Bank of England - Daily Mail

    Daily Mail
    Get ready for sharp rise in mortgage rates, warns Bank of England
    Daily Mail
    By Becky Barrow and Damien Gayle Homeowners should brace themselves for sharp increases in the cost of their mortgages, the Bank of England warned yesterday. It is a bitter blow for Britain's 11.2million mortgage holders and comes as a direct result of ...
    TSB slashes ratesStuff.co.nz
    Kiwibank cuts mortgage ratesNew Zealand Herald
    Eurozone crisis will mean higher mortgages in the UK, Bank of England warnsProperty Wire
    Mortgage Introducer -CTV.ca
    all 126 news articles »
    05/17/2012
    12:19 AM Principal Reductions Won't Solve US Mortgage Mess - Bloomberg

    PBS
    Principal Reductions Won't Solve US Mortgage Mess
    Bloomberg
    There are 11.1 million residential properties with underwater mortgages, only about 3 million of which are backed by Fannie and Freddie. Almost 80 percent of those 3 million borrowers, however, are current on their mortgage, demonstrating their ...
    What mortgage rate will you really get?MSN Money
    Harper: Isakson right on mortgage reformSavannah Morning News
    Mortgage Principal Reductions Weighed for Fannie, FreddieBusinessWeek
    PBS -Kansas City Star
    all 49 news articles »
    05/18/2012
    11:04 AM New UK Mortgages product data and calculators app - Phones Review

    Phones Review
    New UK Mortgages product data and calculators app
    Phones Review
    Everyone in this day and age really needs to keep a close eye on mortgages in the UK, we try to look for the best mobile apps and a new one to hit the Apple App Store is the free 'UK Mortgages' by Mortgage Brain. This seems like a good app, ...

    05/18/2012
    12:01 AM LSL tells buyers to expect costlier mortgages - The Independent

    LSL tells buyers to expect costlier mortgages
    The Independent
    The estate agent behind the Your Move and Marsh & Parsons chains braced would-be homebuyers yesterday to expect dearer mortgages amid mounting alarm over Europe's debt woes. Simon Embley, LSL Property Services' chief executive, said caution among ...
    Greece's default would 'raise the cost of mortgages'Evening Standard

    all 3 news articles »
    05/18/2012

    discounted rate mortgages    Links Page    Blogger Users   Privacy - We do not database any visitor information.

    Other useful search terms: Help with mortgage , how to get a mortgage , mortgage help , what are mortgages ? understanding mortgage loans , simplified mortgage notes , easy mortgage help , mortgage basics , mortgage facts , how much home deposit , what mortgage rate types , home loan options , morgage answers , home loans questions , house buying loans notes , reasons for quote , explanation of mortgag facts , understanding home buying basics , how much salary required , no deposit , rules for loan amounts