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.
	The cheapest tracker and discount mortgages for all LTV options Myfinances.co.uk takes you through the best current tracker and discount mortgage deals for first-time buyers through to homeowners with plenty of equity.
	N&P launches new low rate fixed term mortgages The Norwich & Peterborough Building Society has launched a new range of fixed rate mortgages with rates starting from just 2.94 per cent.
	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.
	The Co-operative offers 20% discount on pet insurance The Co-operative Pet Insurance is celebrating National Pet Month by offering new customers 20 per cent discount when they buy a policy online.