Discount rate mortgages

Discount rate mortgages have their interest rate set in relation to the lenders standard variable rate (SVR) for a set period. For instance, if your lenders’ SVR is 4.99 per cent and you agree a two year discount mortgage of 3.49 per cent you will receive a discount of 1.50 per cent for two years before reverting back to the lenders’ SVR of 4.99 per cent.

Stepped discount deals are also available where the discount rate changes at one or more points of the discounted deal.

It is also possible to continue paying a higher amount than the discount rate would dictate which in effect means you are overpaying on your mortgage and can r4educe the length of your mortgage resulting in paying less interest over the course of the mortgage term.

	Loughborough BS launch new fixed-rate and discount mortgages The Loughborough Building Society has launched a new five-year fixed-rate mortgage at 4.24 per cent for those with an 80 per cent loan-to-value ratio.
	LV= cuts rate on its lifetime and flexible lifetime mortgages LV= has announced that it will cut the rates on their lifetime and flexible lifetime mortgages for the second time this year as a result in a fall in the wholesale rates.
	Leeds Building Society puts fixed-rate mortgages into new year sale Anyone in need of a home loan may be heading to Leeds Building Society after it announced it is adding its three-year fixed-rate mortgages to the new year sale.
	Leeds Building Society ups LTVs on fixed-rate mortgages Leeds Building Society has announced that it has increased the loan-to-value (LTV) ratio on its five-year fixed-rate mortgages.
	Leeds Building Society launches new discount mortgage Would-be property buyers who are struggling to save up a deposit may be interested in a new deal offered by Leeds Building Society.