Discounted Rate Remortgages

A Discounted Rate Remortgage ensures that you will pay a set amount below a lender's standard variable rate for a specified period of time. Whilst the standard variable rate fluctuates. The discount applied will remain fixed, for an agreed term. This is in effect a form of sweetener to the remortgage applicant.

  • Discounted mortgages are often recommended to those who are keen to keep their initial payments as low as possible.
  • Ideal for a first time buyer mortgage or someone whose income isn't particularly high and may wish to have some spare cash, for decoration, home improvements, or furnishings.
  • Discount Remortgages can last from six month up to about five years. The shorter the period of the discount, the greater the discounted rate.

Discounted Remortgage Redemption Penalties

  • One should always find about potential redemption penalties after the discounted period has ended.
  • It may benefit you to wait until the end of the discount period then move to another discounted mortgage.
  • If you do nothing after the pre-determined discount period, you will go back to the standard variable rate.
  • Discounted rate remortgages are effectively enabling you to buy the same product but at a discounted price.

Advantages of Discounted Rate Remortgages

  • The capital saved from the discounted rate can be used for other purposes.
  • The discounted rates enable a small period of respite from the normal repayments

Disadvantages of Discounted Rate Remortgages

  • The discounted rate will not typically last for the term of the mortgage.
  • Once the discounted rate ends, the debtor will have to climatise to the new repayments.

Discounted Rate Remortgages

Skip To Content