The Money Stop

With so many different types of mortgages available in the UK it can be difficult for homeowners or property purchasers to determine which is the best one for them.

Those looking to remortgage or those taking out a first mortgage can usually select from a range of special deals on mortgages from lenders that want to entice customers. Once of these is the discounted rate mortgage, which enables the borrower to enjoy lower monthly repayments compared to those on the lender’s standard variable interest rate.

With discounted mortgages borrowers are offered a reduced interest rate for a fixed period of time, such as three, four, or five years. The interest rate remains variable, and therefore will fluctuate in line with the Bank of England base interest rate.

However, it will be at a discounted rate compared to the standard variable rate offered by the lender. You can select from a range of discounted rate periods, and the shorter the discounted period the higher the discount is likely to be.

Once the discounted period on these discounted mortgages comes to an end the interest rate will revert to the standard variable rate applied by the lender. You should bear in mind that if you want to leave your discounted mortgage early you may have to pay quite hefty penalties, so make sure that you read the small print before you make any commitment.

These discounted mortgages provide an effective way for homeowners to keep their mortgage repayments down for the first few years of their mortgage term. Once your discounted period has ended you may be able to find another good deal on a discounted mortgage with another lender.

The discount offered on discounted rate mortgages can vary from one lender to another, and also based on how long you have the discount over. In order to find a competitive discounted rate it is important to compare a number of discounted mortgages from a range of lenders, as you can then compare the standard variable rate charged by the lender as well as how big a discount is offered and for how long.

The Internet is the easiest way to compare a wide range of discounted mortgages, and will enable you to quickly determine which discounted mortgages offer the best rates and biggest discounts. You can then make your application with ease and convenience online once you have decided which discounted mortgage you wish to apply for.

More related mortgage articles:

• Buy To Let Mortgages
• Compare Mortgages Online - UK Mortgage Comparison
• Discounted Mortgages - Compare Introductory Discount Mortgage Offers
• Remortgages - Bad Credit Remortgage Offers
• Fixed Rate Mortgages - Compare Fixed Rate Mortgage Offers
• Tracker Mortgages

More Information:

• What Is A Mortgage?

Related Posts

Compare Mortgages Online - UK Mortgage Comparison

There are many different types of mortgages available in the UK these days, and in order to find the right mortgage for your needs you need to compare mortgages to see which one best suits

Consumers need to be ‘wary’ of introductory Isa offers

Consumers have been warned by a financial expert to tread carefully when considering introductory offers on individual savings accounts (Isas). Bestinvest said that introductory offers emerge when an Isa product first launches, which means

Hints and Tips on Remortgaging

Over the past year or so many people in the UK have decided to remortgage as a result of rising interest rates and decreasing affordability. In order to avoid the implications of missed and late

Tide turns on fixed rates, according to GMAC-RFC

Mortgage lender GMAC-RFC predicted a shift back towards customer preference for alternative mortgages such as tracker mortgage and discount deals in the coming year.The provider claims that fixed-rate deals are "already priced high" in preparation

Tracker Mortgages

These days consumers in the UK can select from a range of mortgage types and deals, with something to suit most needs, circumstances, and budgets. One type of mortgage that is available on the market

Credit cards reward disloyal behaviour

Credit card companies' struggle for new customers is encouraging disloyalty, a new report has claimed. By reserving the best deals for new customers only, Defaqto argues in its report 'Credit Cards in the UK', credit

HSBC launches zero-fee mortgage policy

Those people averse to paying a fee on their mortgage may be enthused by HSBC's new offering.Available for a limited period until April 30th, every new HSBC mortgage taken up with the group will be

Veggies can now get great deal on life insurance

Life insurance premiums can vary from one insurance company to another, but the cost of premiums is based upon your circumstances, medical history, and lifestyle. In the past, we have all learned that those that