The advantage of this for you, as a borrower, is that your monthly mortgage repayments will be more affordable during the early days of your mortgage loan. This can provide some valuable breathing space just when it is most needed.
This could be particularly useful for you if you are a first-time buyer expecting future salary rises to boost your income, or if you are trading up to a larger property, say, to make room for children.
NB: You should never borrow more than you can afford, always leave yourself some room for manoeuvre.
Of course, it is important to remember that, once the discount period expires, you will need to re-mortgage if you wish to secure another period of discounted mortgage rates. In addition, if UK interest rates rise during the discounted period, your mortgage rate will also rise – though you will still pay less than those not on discounted rate mortgage deals.
These mortgage deals are ideal for borrowers who are happy to re-mortgage regularly as their discounted rate period comes to an end.
Click here for our Discounted Rate Mortgage Best Buys.
