London Mortgage Advice

A discount rate mortgage offers a percentage discount off the lender’s standard variable rate. The level of discount is usually fixed for the period of the discount, anything from 6 months to 5 years.

At the end of the discounted rate period you will revert to the standard variable rate or another rate that that will last for the remainder of the mortgage term.

Usually there will be a penalty charge covering the discounted rate period during which you will pay a charge for redeeming the loan.

There are some discounted rate deals without redemption penalties.

At the end of a discounted rate term, assuming there is no tie in period or penalty for going elsewhere it may be beneficial to re-mortgage to another lender.

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London Mortgage Advice Ltd is authorized and regulated by the Financial Services Authority for residential mortgages and non investment insurance business. As we give independent advice we can offer you either a 'no fee' option where we are paid by the lender or you can pay our total fees. Typically this will be anywhere between 0.3% and 1% of the mortgage amount (based on a loan of £100,000 this would result in a fee of between £300 and £1000). In this instance we will rebate to you any commission we receive from the lender. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.