Discount Mortgages

In terms of the benefits, a discount mortgage ensures that a buyers rate will always remain below a lender’s SVR for the length of the deal. In certain economic circumstances, a discount mortgage can ensure a very low rate of interest.

As a drawback, discount mortgages certainly do not offer the stability of a fixed-rate mortgage, as buyers have no control over what the lender’s SVR is at any certain time. For those on a tight budget, needing repayments to stay the same from one month to the next, it may make more sense to choose a fixed-rate mortgage.

It is also worth considering, that attempting to pull out of a discount before the end of a deal period may incur early repayment charges. At Just Mortgage Brokers we can provide professional advice on all types of mortgages, including specialist lending such as commercial mortgages, adverse credit mortgages and buy to let mortgages.