Discounted Mortgage With a discounted mortgage lenders offer a discount on the standard variable rate for a specified term. The savings from discounted mortgages can be considerable although you have no protection against increases in interest rates and may find that an increase takes you over your budget. Capped Mortgage Capped mortgages enable you to place a limit on your monthly mortgage commitment and still benefit from falls in interest rates. Cashback Mortgages A mortgage that provides you with an amount of cash at the outset of the mortgage. In return you usually agree to pay the variable rate charged by the bank or building society, for a specified term.
Some lenders offer cashbacks in conjunction with other offers such as discounts or fixed rates.
The borrower pays off all or part of their mortgage without paying a penalty. Payment holidays can be taken during the year and extra funds are normally available via a drawdown facility. As with a standard variable or discounted variable mortgage the interest rate can fluctuate and is not fixed at the initial rate of interest. The Mortgage Exchange are experts at finding and arranging the BEST possible deals for our clients from a wide range of lenders. Your home is at risk if you do not keep up the repayments on a mortgage or other loans secured on it.