Discounted Rate Mortgage

Variable Interest Rate Mortgage with Discount

The lender agrees that the interest rate charged will be their standard variable rate less a discount for a specified period of time - anything from six months to five years. As it is linked to the standard variable rate the rate charged will vary so monthly payments could also go up or down as general interest rates move.

Discounted variable rates can be with or without a tie in. A discounted rate with a tie in means you are obliged to stay with the same lender for a period of time after the discounted rate has ended, normally on the higher standard variable rate. If you decide to move lender within the discounted rate or tie in period an early repayment charge will probably apply. A discounted rate with no tie in means you are free to move lender at the end of the discounted rate period.

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Your home may be repossessed if you do not keep up repayments on your mortgage. Memigo Money provides information but does not sell or provide advice on mortgages or their suitability. There may be a fee for mortgage advice; the precise amount depends on your circumstances.

For adverse credit mortgages the overall cost for comparison will vary, the actual rate available will depend upon your circumstances. Ask for a personalised illustration.

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