Discounted Rate Morgages
A discounted rate mortgage offers you a percentage discount from the lenders normal variable rate for a set period of time. If the standard variable rate fluctuates, the degree of discount will also vary. The amount you pay can rise and fall in line with standard variable rate fluctuations on a monthly basis. This could help in the early years but will involve an increase in your payments when the discount ends. Again check for early redemption penalties. Discounted rates are suitable for people who would like lower initial payments at the expense of higher interest rates later on.
