Discounted Rate Mortgage Information

 

A Discounted Rate gives you a guarantee that for a period of time your interest rate will remain at a certain level below the variable rate. Hence if the current variable rate is 7% and your rate is discounted by 2% the rate you would pay would be 5%.

 

Advantages:

 

Gives a reduced repayment over the period of the discount

 

Repayments will reduce with interest rate falls

 

Disadvantages:

 

Repayments will rise with interest rates

 

May have to pay application and/or arrangement fees

 

Usually an early repayment charge of several months interest if redeemed during or shortly after discounted period