Discounted mortgages
Discounted mortgage deals offer a lower interest rate for a fixed amount of time, after which the mortgage rate reverts to the standard variable rate.
The discounted mortgage rate is a set amount under the mortgage lenders standard variable rate, typically for around two or three years.
As always when searching for a mortgage deal, check the APR (Annul Percentage Rate) for an indication of other charges associated with the discounted mortgage deal. Also check whether early redemption penalties apply and whether there are any tie-ins after the discounted period has ended.
When should I get a discounted rate mortgage?
If interest rates are dropping, discounted mortgages are an attractive option. However, if interest rates are rising then a fixed mortgage deal is worth considering.
Where to find variable rates mortgages
Arrange your mortgage online through NationwideDiscounted rate mortgage deals are available from many banks or building societies, such as Nationwide. Alternatively, check with a mortgage broker such as Alexander Hall who have access to discounted mortgages from all the major mortgage lenders.