Looking for a remortgage can be a trying time as there are many different mortgage lenders all offering remortgages that can seem attractive. As with any financial decision it is always best to get the very best advice and help when choosing a remortgage that is right for you.

One type of remortgage that can provide a good saving is a discounted variable rate mortgage. This type of mortgage is along the same lines as a discounted rate mortgage, it takes the lenders standard variable rate and applies a discount to that rate for a fixed period of time. Many of the discounted variable rate remortgages apply the discount for 2 years although some lenders will go as high as 5 years, but to find out more you need to check the market.

With the mortgage market in 2009 in a severely distressed position and interest rates at an all time low discount mortgage and remortgages are one of the cheapest mortgages available on the market. This makes them particularly tempting in today’s market when money is tight and fuel and food prices so high. As discounted rate mortgages are popular it is important to know the advantages and disadvantages of this type of mortgage.

Pros and cons of a discounted variable rate remortgage
When you are looking at remortgaging you need to be aware of the pros and cons of each mortgage deal and decide which is best for you and your circumstances.

Here are the pros and cons of a discounted variable rate remortgage-

Pros
You will benefit from the discounted period which could save you a substantial amount of money.
If your lenders interest rate falls, so will your mortgage repayments.

Cons
Once the discounted period ends your mortgage repayments will go up. If you want to pay your remortgage early you will be subject to early redemption fees. You might be asked to pay an application fee to your lender when your discounted variable rate mortgage is set up, so you should budget for this.

Discounted rate remortgage advice
To find out more about discounted rate remortgages you can find out more information and the latest interest rates on one of the many mortgage comparison website. Alternatively you can speak to a fully qualified independent mortgage advisor about a discounted variable rate remortgage. Many independent mortgage advisors offer fee free mortgage advice but it is important to check with your advisor that it is fee free before accepting any advice or recommendation.

Jason Haines is a protection and mortgage advisor at godirect.co.uk, one of the UK’s most trusted information site about personal finance. Here you will find information on all the major mortgage lenders mortgage rates, and you can save money on your mortgage protection as well.

Article Source: Discounted Rate Remortgages – Have They Seen Their Day?

…

Read this article:
Discounted Rate Remortgages – Have They Seen Their Day?