A Discount Mortgage in case you don’t know, is one that tracks the Standard Variable Rate (SVR) of a given lender. It’s called a “Discount Mortgage” because it remains a set amount below that SVR for an agreed-upon amount of time, before eventually reverting to the higher SVR rate.
Homeowners and would-be homeowners in Surrey are drawn to Discount Mortgages because, if the economic climate is right, they stand to save a considerable amount of money when compared to a fixed-rate mortgage. If you are looking for a Discount Mortgage in Surrey you owe it to yourself to get in touch with Mortgage & Lifetime Solutions.
The Upside and Downside of Discount Mortgages Surrey
It might seem that everyone who is eligible should bypass fixed-rate mortgages and always default to Discount Mortgages. But while a Discount Mortgage may save you a substantial sum over the life of your loan, there is always the chance that economic conditions could become volatile. If that happens your discount rate might wind up higher than the fixed rate you passed over.
For some time now interest rates have been very low, compared to the historical norm. For that reason, most people will opt for the fixed-rate mortgage over the Discount Mortgage. That said, there might still be occasions when a Discount Mortgage is the smart choice. The best thing to do before deciding on what type of mortgage is in your best interest is to talk to the team at Mortgage & Lifetime Solutions.
