Ambergate Independent Financial Services

A discounted rate mortgage is a variable rate mortgage, which allows a known reduction in the mortgage rate charged for a set term. This differs from a deferred rate mortgage, where instead of allowing a discount in the rate charged, a reduced monthly payment is allowed, with the shortfall being added to the mortgage debt.

At the end of the discounted rate period, your mortgage will revert to a variable rate. This may be higher than the rate you have been paying. In some cases, the lender may offer you an alternative rate. Please refer to your mortgage offer for details.

Some discounted rate mortgages can be continued if you move house during the term of the offer rate. Please refer to your mortgage offer letter to see if this applies.

Your home is at risk if you fail to ensure that your mortgage loan is repaid by the end of its term. It is your responsibility to ensure that your mortgage is repaid on time.

If you have an interest only mortgage, it is also your responsibility to ensure that you have an investment plan in place to repay the mortgage debt.