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.

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2009-02-17 00:00:00 © Moneyextra.com