Discounted Rate

How it works
Your payments are variable, but they are set at less than the lender's standard variable rate for a set period of time. At the end of this period, you are usually charged the lender's standard variable rate.

Early repayment charge?
During the special deal period -Yes, with most loans
For some time after the end of the special deal - Yes, with some loans.

Is it for you?
Yes, if money is tight when you first take out the mortgage, but are confident your income will increase and you can afford the increased payments when the discount period ends.
No, if you won't be able to afford the mortgage payments when the discount period ends.
No, if you wouldn't be able to afford the mortgage payments following a big rise in interest rates.

 

Your property may be repossessed if you do not keep up repayments on your mortgage.

 The Financial Services Authority (FSA) does not regulate some forms of mortgage. 

The information set out on this page is intended to provide a general appreciation of the topic and it is not advice. Guidance should be sought from a specialist who is qualified to advise in your specific circumstances.

For more information on any aspect of mortgages please contact Surrey Financial Advice on 01483 211800 or email us at admin@surreyifa.co.uk  We will be happy to assist you.