Discounted Rate
With a discounted deal, you agree to pay a certain percentage below your lender’s standard variable rate (SVR) for a certain number of years.
Again, if you want to get out of the deal early, there will usually be an early redemption charge.
The advantage: If interest rates fall, your monthly payment will go down.
The disadvantage: If interest rates rise, your monthly payment will go up. Lender can change SVR at any time. Discounted mortgages are becoming less popular in favour of Trackers
