Low Start Mortgages

Low Start Mortgages. In the competitive environment among home lenders there are a variety of offers which promise a discount off the prevailing variable interest rate . In other words, the interest rate on offer is set at a set margin below the standard variable rate.

This 'discount' may be for a number of years, but in some cases lenders have offered big discounts for short periods of time.

These offers are, in a sense 'too good to be true'. They invariably involve the borrower agreeing to stay with the lender for a period of time or face 'withdrawal penalties'.

Other options include mortgages which are: variable rate , fixed rate or capped.

See also: Guide to Mortgages, our latest Mortgage rates, and our mortgage Comparison Service.

Last Updated: November 2007 © Moneyextra.com

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