What is a discounted mortage?
A discounted mortgage rate will usually offer a discount off the lenders standard variable rate (SVR). The discount may sometimes be applied for an introductory or fixed term period, or it may be for the entire term of the mortgage.
A discounted mortgage rate is also variable itself and is subject to fluctuations dependent on the SVR. For example if the lenders SVR is currently at 5% and you were offered a discount of 1%, you would pay 4% interest on your mortgage payments. However if the lenders SVR rose to 6% your payments would also rise to 5%.
Once the introductory period comes to an end, you are most likely to revert to the lenders SVR.
You can read more about SVR and other terms in the SoSmart Money specialist mortgage guides, or click on the links below to read some other helpful hints and tips on mortgages and home buying.
Remortgaging
Remortgaging your home to get a batter rate? Use our remortgage comparison tool to find a competitive mortgage.
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First Time Buyer
Buying your first home? We can help you to find a low rate mortgage deal that will give you a start on the property ladder.
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Buy to Let
Buying a property to let out to tenants? Use our comparison tables to find a low rate mortgage deal to suit you.
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