Discount mortgages are a type of variable rate mortgage that track below a lender's standard variable rate (SVR) for a set period of time. If a lender has an SVR of 4.5% and the discount is 1%, the rate you'll pay will be 3.5%. As with a tracker mortgage if the lender raises their SVR, your discounted rate and the amount of your monthly mortgage payment will also increase.
Most of discount rate mortgage deals last for a set period of time - typically 2-3 years, but there are some lenders who offer longer terms. At the end of the discounted rate term, your mortgage lender will usually transfer you onto the SVR with no discount applied. Ahead of this it's always advisable to speak with an independent mortgage broker to look at your personal situation and shop around for the best available deal.
Before decided to opt for a discount mortgage from the below table, it's important to speak with an independent mortgage expert. Our advisers at John Charcol will be able to assist you in comparing products from across the mortgage market to help you decide which mortgage type and product is best for you and your individual needs. If you can get a better deal using another mortgage product our experts will let you know.
If you're interested in discount rate mortgages the table below highlights our pick of the best discount mortgage deals currently available.
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