Discounted Mortgages
mortgage glossary
In the competitive environment among home lenders, there are a variety of offers which promise a discount off the prevailing variable interest rate . In other words, the interest rate on offer is set at a set margin below the standard variable rate.
These offers are, in a sense 'too good to be true'. They invariably involve the borrower agreeing to stay with the lender for a period of time or face 'withdrawal penalties'.
Other options include mortgages which are:- variable rate, fixed rate or capped.
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