discounted rate mortgages
General Notes
Page Down
  

Need help to understand Mortgage Jargon ?


We have put together some mortgage help pages  

We hope you find this of use. Good Luck !  

This page -    discounted rate mortgages

Credit Cards
Loans
Insurance
Mortgages
Utilities







  UK Discount Rate Mortgages

A discount mortgage has the discount applied to the lender's standard variable rate for a set period - usually from six months to several years. As the lender's standard variable rate moves up and down, so the discounted rate moves up and down by the same amount, with the differential between the two remaining the same.

Advantages of Discount Rate Mortgages

  • You can benefit from a lower interest rate in the first few years, freeing up money for furnishings, carpets or whatever else you want.

  • You can benefit from a fall in the Bank of England's base rate when it results in a subsequent fall in the lender's standard variable rate.
Disadvantages of Discounted Rate Mortgages

  • Early redemption penalties will almost certainly apply, which may also extend beyond the end of the discounted period. This means you will be unable to change your mortgage during the 'early redemption penalty period' without paying a fee, which may be up to the value of six months mortgage repayments. So, you may be trapped in an uncompetitive rate once the interest rate reverts to the lender's standard variable rate.

  • You will normally have to pay an application fee when arranging your discount mortgage.

  • At the end of the discounted period your mortgage payments will suddenly increase as the mortgage reverts to the lender's standard variable rate.


    NEXT - remortgages

    Mortgages explained | About mortgage types | repayment mortgage | endowment mortgage | interest only mortgages | how much can I borrow ? | mortgage payback rates | variable rate mortgages | fixed rate mortgages | capped rate mortgages | discounted rate loans | remortgages | first time buyers | buy to let mortgage | commercial mortgages | mortgage costs | glossary of terms | mortgage FAQ's |

    Latest Mortgages News

    12:46 PM Obama in weekly address: Push for mortgage reform - Politico

    AFP
    Obama in weekly address: Push for mortgage reform
    Politico
    In his weekly address broadcast Saturday, President Barack Obama called on supporters of his mortgage reform proposal to pressure Congress into passing the legislation — telling voters to remind their representatives who they work for.
    Obama presses Congress on home refinancingUSA TODAY
    Obama urges passage of US mortgage reliefAFP
    President's plan could help underwater homeownersLas Vegas Review-Journal
    LoanSafe
    all 388 news articles »
    02/04/2012
    12:42 PM NY AG Sues BofA, Wells Fargo, JPMorgan Chase over Mortgage Fraud - JDJournal.com

    Los Angeles Times
    NY AG Sues BofA, Wells Fargo, JPMorgan Chase over Mortgage Fraud
    JDJournal.com
    New York Attorney General Eric Schneiderman has filed a suit against Bank of America, JP Morgan Chase and Wells Fargo over their abuse of a private database, MERS, in handling mortgages. The suit claims that this led to several wrongful foreclosures.
    New York Sues 3 Big Banks Over Mortgage DatabaseNew York Times
    JPMorgan, BofA Sued by New York Over Use of Mortgage DatabaseBusinessWeek
    NY's Schneiderman sues banks in foreclosure effortWall Street Journal
    Reuters -Los Angeles Times -USA TODAY
    all 355 news articles »
    02/04/2012
    11:37 AM Yorkshire BS cuts rates on 90% LTV mortgage range - MyFinances.co.uk

    Finance Markets
    Yorkshire BS cuts rates on 90% LTV mortgage range
    MyFinances.co.uk
    Coventry Building Society has launched a new range of five-year fixed rate mortgage deals for first-time buyers, buy-to-let investors and homeowners looking to remortgage. Yorkshire Building Society is offering a helping hand to would-be property ...
    Money Insider: Chelsea ramps up mortgage battle for supremacyThe Independent
    Refinancing: Time to Act?Wall Street Journal
    Chelsea's five-year fixed-rate mortgageFinancial Times
    Finance Markets -BusinessWeek -ScrippsNews
    all 367 news articles »
    02/04/2012
    10:54 AM Full mortgage relief 'not paid' - Irish Times

    Irish Times
    Full mortgage relief 'not paid'
    Irish Times
    The failure of the Revenue Commissioners and the main banks to co-ordinate their computer systems in time has left hundreds of thousands of young mortgage holders paying more than they should for their loans. The failure of the Revenue Commissioners ...

    and more »
    02/04/2012
    01:35 PM Obama: Push for mortgage reform - Politico (blog)

    Politico (blog)
    Obama: Push for mortgage reform
    Politico (blog)
    By BYRON TAU | In his weekly address broadcast Saturday, President Barack Obama called on supporters of his mortgage reform proposal to pressure Congress into passing the legislation — telling voters to remind their representatives who they work for.
    Obama Vows to Cut Lender Red Tape Stymieing Homeowner Borrowing: MortgagesBloomberg
    Obama promises cheap mortgagesDaily Caller
    Limbaugh: Another 'free lunch' from Obama's stashGOPUSA
    WND.com -Washington Post (blog)
    all 8 news articles »
    02/04/2012

    discounted rate mortgages    Links Page    Blogger Users   Privacy - We do not database any visitor information.

    Other useful search terms: Help with mortgage , how to get a mortgage , mortgage help , what are mortgages ? understanding mortgage loans , simplified mortgage notes , easy mortgage help , mortgage basics , mortgage facts , how much home deposit , what mortgage rate types , home loan options , morgage answers , home loans questions , house buying loans notes , reasons for quote , explanation of mortgag facts , understanding home buying basics , how much salary required , no deposit , rules for loan amounts