Definitions for "Discounted Rate Mortgage"
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