07/09/2026
What with everything going on in the financial markets as of late, cost of living going up, inflation rising, and mortgage rates rising, we’ve had a lot of questions such as, ‘Which rate should I have?”, “How long should I fix for?” and, “Should I wait to see if rates drop?” 🤔
Did you know there are more types of mortgage products available other than fixed rates?
Discounted Rates work slightly differently;
📍Discounted rates involve a discounted period on the lender’s SVR (remember that from last week? Standard Variable Rate) for a set period of time, this discount is normally set for 2 years although some lenders have been known to discount for longer.
📍The best way to show an example of this is that a lender has an SVR of 6% and they offer a discount of 2%. The initial rate payable will be 4%. As we know, lenders determine their SVR. If the SVR rises then your rate will rise in line with this, as will your payments.
📍Similar to fixed-rate mortgages, the majority of lenders will have exit fees or early repayment charges, as they are also known, on these discounted rates. These charges are applicable if you pay off your mortgage early before the discounted rate ends, re-mortgage to a new lender and often they also charge if you overpay more than 10% of your balance per year.
If you'd like to see how I can help you with your first or next mortgage give me a call or drop me an email:
📞01733 367800 – option 6
📱07711668242
⌨[email protected]
💻www.agentisfinancial.co.uk
*Your home may be repossessed if you do not keep up the repayments on your mortgage*
