Discounted Mortgage
A discounted mortgage can be an attractive option for borrowers seeking short-term savings. It offers a lower interest rate, typically for 2 to 5 years, by taking a percentage off the lender's Standard Variable Rate (SVR). This results in reduced monthly mortgage payments, providing some financial relief during the discounted period.
The benefit of a discounted mortgage lies in its flexibility, as the interest rate remains linked to the lender's SVR. This means that if the SVR changes, your mortgage rate will also adjust, giving you some adaptability during the discounted period.
It's important to keep in mind that once the discounted period ends, the mortgage will likely revert to the lender's SVR. At this point, you have the option to explore remortgaging with your current lender or considering other lenders.
However, be cautious of any Early Repayment Charges (ERC) that may apply if you choose to remortgage before the discounted period concludes.
When considering a discounted mortgage, it's crucial to carefully assess your financial situation and long-term goals. Seeking guidance from a mortgage advisor can help you make an informed decision and find the right mortgage solution that suits your needs.
At Austin Friars Financial, we're here to support you throughout the mortgage process. Our team of dedicated mortgage advisors can provide you with expert advice, ensuring that you choose the best option for your unique circumstances. Let us help you explore the possibilities and take the first step towards securing your financial future with the right mortgage choice.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.