Discount Rate Mortgage

Discounted mortgages offer lower payments for the first few years. The discount is usually a one or two per cent discount of the lender's Standard Variable Rate.

These are quite good for first time buyers as a discounted mortgage can give you a couple of years of breathing space. There are particularly attractive if there's no tie-in period afterwards because you can simply remortgage with another lender when the discount period comes to an end.

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