Who would a discount mortgage suit?
Historically, discount mortgages were ideal for first-time buyers, who could used the reduced interest payments to help them afford furnishings for their new homes. Nowadays, if you can find a lender with a low SVR, a discount mortgage can be a cheaper option for borrowers who are prepared to take the risk that their lenders SVR may fluctuate. Anyone thinking of taking out a discount mortgage needs to consider whether they will be able to keep up with repayments in the event of an interest rate rise though, as this could really push up the monthly costs on a large mortgage.
