A mortgage with a guaranteed reduction in the variable mortgage rate (say, 2% below the variable, whatever it may be). Generally lasts for an agreed period and if you change mortgages within that time, you will pay a redemption penalty.
A mortgage which guarantees that the interest rate charged will be lower than the lender's standard variable rate.The lower rate offered is usually set for a specified period of time and reverts to the standard rate after that period.
a variable rate mortgage, which allows a known reduction in the mortgage rate charged for a set term
This means interest charged on a mortgage is at the variable base rate and applies to the mortgage, less a discount for a set period. This means the rate and so your monthly repayment will go up or down depending on the variable base rate changes. This will remain until the end of the discounted rate period. These type of mortgages tend to lock you into the discount rate mortgage for a minimum limited period and may include a penalty clause if you try to swap.
This phrase refers to mortgages which have an interest rate lower than normal variable rate. The discounted rate is a fixed discount off the normal variable rate for a set period of time. It should be remembered that a discounted rate will move up and down with the normal variable rate but the rate paid will always be at a fixed percentage less for the discounted rate period, e.g. a rate may be 3% below the variable rate for 3 years. If a Discounted Rate mortgage is redeemed during the early years it is likely that there will be early redemption penalties.
A discount offered by mortgage lenders to new borrowers, reducing monthly mortgage costs often for the first two or three years of the loan period
A mortgage with a variable interest rate but discounted for a set period.
This is where the lender's standard variable rate is discounted or reduced by a specified amount for a fixed period of time or to a specified date. When the discount period ends the borrower normally pays the lender's standard variable rate.
This is a variable mortgage that is discounted from a Lender's SVR by a set percentage within a set period. There are often early repayment charges applicable if the loan is repaid within the discounted period.
A mortgage arrangement where the interest rate is held below the standard variable rate by a set margin for a specified period.
This is a variable rate mortgage where the lender reduces the normal rate for a set period of time at the start of the mortgage. This reduction is guaranteed for a specified time, sometimes for a certain number of years from completion but more often until a set date in the future.
A type of mortgage that offers an interest rate that is guaranteed to be lower than the lender's standard variable rate for a set period of time. After the discount period has ended, the rate reverts to the standard rate. Such mortgages allow lenders to woo first-time buyers with attractive-looking headline rates. Just make sure that when the rate reverts to the standard rate you can afford the repayments. Also, if you switch mortgage lenders within the discount period, you'll pay an early redemption penalty that can be as high as six months interest.
A mortgage which guarantees the interest rate charged will remain a set number of percentage points below the lender's standard variable rate. The rate changes as base rate moves up and down, but the relationship between base rate and the rate you pay remains constant.
A mortgage where you get a discount on the interest rate during the initial special offer period.
