Discount Rate Mortgages
A discounted rate gives you a guarantee that, for a period of time, your interest rate will remain at a fixed percentage below the variable rate. Therefore, if the current interest rate is 7% and your rate is discounted by 2% (i.e. 5%), if the interest rate were to be increased by 1% then your rate would rise to 6%.
* Gives a reduced repayment over the period of the discount.
* Repayments will reduce with interest rate falls.
* Repayments will rise with interest rates.
* May have to pay application and/or arrangement fees.
* Usually, a penalty payment of several months' interest if redeemed during or shortly after discounted period.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Hume Associates Mortgage Services is an appointed representative of Sesame Ltd which is authorised and regulated by the Financial Services Authority
For more information on how we are paid for mortgages please click here