Variable Interest Rates
Variable rates are currently around 7.0% and are expected to stay near that level for the rest of the year. Variable rates may be discounted for a fixed period. This means that for a fixed period, you will pay interest on your mortgage at a lower level than the standard variable rate.
Assume the Standard Variable rate is 7.00% and the Discount rate is 2.50%. To work out the Discounted Variable rate (i.e. the rate you will pay), simply subtract the Discount rate from the Variable rate, in this case 7.00 minus 2.50, giving a discounted rate of 4.50%
Lenders will give discounted rates to First Time Buyers. They may also give you this preferred rate if you transfer you mortgage to them, or for existing customers who are moving home again. The rate may also vary depending on the size of your mortgage (the higher the mortgage, the higher the discount rate).
It is very important to remember that the discounted rate only lasts for a fixed period (often 12 months). After that period, the lender's Standard Variable rate will apply. Always check to see how long the discount rate .
View the best market rates currently available.
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.