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





Mortgage Rate
Find Top Results Here
www.peeplo.com



  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

    12:59 AM Hopes rise of profit from Northern Rock sale - Financial Times

    The Guardian
    Hopes rise of profit from Northern Rock sale
    Financial Times
    Northern Rock said 4.3 per cent, or 22000, of its mortgages were in arrears at the end of 2009, compared with 2.9 per cent a year earlier. ...
    Northern Rock: more than 4% of mortgage customers are in arrearsThe Guardian
    Can taxpayers profit from Northern Rock?BBC News (blog)
    £15m bonuses 'justified' after Rock slashes losses by £1bnIndependent
    Mirror.co.uk -Wall Street Journal -Money Marketing
    all 334 news articles »
    01/01/1970
    12:59 AM Cash Point: Countrywide launchs first rewards scheme for mortgage customers - Mirror.co.uk

    Cash Point: Countrywide launchs first rewards scheme for mortgage customers
    Mirror.co.uk
    Points are dished out at the rate of 1000 for any mortgage and 200 for products such as buildings insurance. But a tiered system for cashing in rewards ...
    Firm starts mortgage reward schemeThe Press Association
    Mortgage activity shows renewed demand for residential conveyancingKester Cunningham John Solicitors (press release)
    Countrywide Offers Mortgage Rewards for UK CustomersHULIQ
    Mortgage Strategy -Mortgage.org.uk -Mortgage Solutions
    all 14 news articles »
    01/01/1970
    12:59 AM What mortgage can I get on a rental home? - The Guardian

    The Guardian
    What mortgage can I get on a rental home?
    The Guardian
    I have a £50000 deposit and do not have a mortgage on my own home. I am looking for a loan of £80000 for the second property. Am I restricted to buy-to-let ...
    Despite Looming Fed Exit, Mortgage Rates Stay LowWall Street Journal (blog)
    Recent Uptick in Mortgage ApplicationsInternational Business Times
    Interest rates on popular mortgage deals at 6-year lowTimes Online
    Mortgageorb -MonitorBankRates.com -UPI.com
    all 131 news articles »
    01/01/1970
    12:59 AM Bailed-out banks fail to act competitively - FT Adviser

    Bailed-out banks fail to act competitively
    FT Adviser
    Lenders are still not offering competitive mortgage deals despite the Bank of England base rate being at an historic low for a year, according to Moneyfacts ...
    Increasing mortgage availability 'will help first-time buyers'Houseladder
    Mortgage deals on offer from lenders increaseBBC News
    Mortgage market opens up as higher LTV deals returnCitywire.co.uk
    Mortgage Solutions -UK Express -CreditChoices.co.uk
    all 28 news articles »
    01/01/1970
    12:59 AM GMAC Sells $250M in Problem Mortgages as CFO Steps Down - DSNews.com

    GMAC Sells $250M in Problem Mortgages as CFO Steps Down
    DSNews.com
    GMAC Financial Services has auctioned off $250 million of problem mortgage assets, using Citigroup Inc. as its broker on the deal, according to a report ...
    GMAC finance chief to departFinancial Times

    all 131 news articles »
    01/01/1970

    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