a variable interest rate that is consistently a certain percentage below the lender's standard variable rate.
This means interest is charged at the standard variable base rate that applies to the mortgage, less a discount for a set period. This means the rate, and your monthly payment, will vary — up or down — whenever the standard variable rate changes, but will remain below the standard variable rate during the discounted rate period.
A discount is given off the lenders variable rate for a certain period, i.e. 2 years. Therefore whether interest rates rise or fall, you will be charged a rate less the discount. A redemption period may also apply.
An interest rate that has received a discount from a lenders standard variable rate this is often for a certain period of time, after this time the rate will revert to the standard variable rate of the lender.
A mortgage which has an interest rate below the lender's standard variable rate (SVR), Bank Base Rate or Libor rate, typically for the first few months or years of the loan. The rate payable may move up and down, but the discount on SVR remains constant
a cut-off allowed by the lender during a small period
a special rate set a certain number of points below the standard rate
Many mortgage providers offer an incentive in the form of a discount on the standard variable rate for an agreed period of time. For example you could be offered a 2% discount on whatever the variable rate is for 1 year. this can be helpful when budgeting for the costly first period after a move. Once the agreed period has ended the "standard variable rate" at that time will again apply.
This is set at a discount from the lenders standard variable rate. This means that the interest rate can vary during the tie in period but is always less than the lenders variable rate.
A type of mortgage where the interest rate is somewhat reduced for a preliminary incentive period.
The interest rate used in calculations of present value to convert future cash flows into present value.
The lender offers a discounted rate on the mortgage's standard variable rate for an agreed period of time.
A reduced mortgage interest rate that lasts for a fixed period of time.
An assured reduction in the standard variable mortgage rate (SVR). This often lasts for an agreed time.
A type of mortgage. Essentially, it's a standard variable rate mortgage that offers a discount for a fixed period of time. The discount will be set at a certain percentage below the standard variable rate and the interest rate will move up and down in line with the variable rate.
A guaranteed reduction in the standard variable mortgage rate . This often lasts for an agreed period.
A discounted rate mortgage will have a fixed period of time (usually at the start of the mortgage) where the interest rate charged is at lower level than the lenderâ€(tm)s standard variable rate (SVR). It would normally be expressed as a set percentage reduction (eg: 2% below variable rate for 2 years). Usually agreed at the time a mortgage is taken out, this facility enables the borrower to take out additional lending on the mortgage at some time after the main mortgage monies are advanced. It can be used to guarantee the release of the extra funds without the need to make further applications to the lender, and is commonly used to pay for things like home improvements.
This is a discount from the standard variable rate for a set length of time.
This is where the lender makes a guaranteed reduction off the standard variable rate for an agreed period of time. After the discounted period ends, the mortgage usually moves to the lenders' standard variable rate. Watch out for redemption penalties that overhang the initial discount period.
Gives you a reduction on a base rate for a specific period. If, during this period the base rate should rise or fall, you will still qualify for the discount and therefore pay a lower rate. Usually for a set period of time.
This phrase refers to mortgages which have an interest rate lower than normal variable rate. The discounted rate is a fixed discount off the normal variable rate for a set period of time. It should be remembered that a discounted rate will move up and down with the normal variable rate but the rate paid will always be at a fixed percentage less for the discounted rate period, e.g. a rate may be 3% below the variable rate for 3 years. If a Discounted Rate mortgage is redeemed during the early years it is likely that there will be early redemption penalties.
An arrangement which gives you a set reduction, or 'discount' off our standard variable rate for a specified period of time. At the end of the specified period your mortgage rate will change to the standard variable rate in force at the time. Sometimes there are redemption penalties associated with this type of deal.
a variable rate that is set at a fixed percentage amount below the lender's standard variable rate for a period of time. At the end of the period, the mortgage goes back to the lender's variable rate.
A discounted rate gives you a reduction of, for example, 2% off the standard variable rate (SVR) for a specific period. So, during this period should the SVR rise and fall, you will still qualify for the discount and therefore pay a lower rate.
A rate of interest offered by a lender for a set period of time. The rate is usually fixed at a certain amount (of the lenders choosing) below their Standard Variable Rate.
