If you're a first-time buyer or looking to keep a little extra money in your pocket in the first years of paying off your mortgage, a discount mortgage could be the right option for you. This product gives you the option of paying a set amount below the lender's standard variable interest rate for an initial period, which can vary between six months and five years.
A discount mortgage allows you to keep your monthly repayments at a lower level for the first period and leaves you with extra funds for decorating or improving your new home. It's critical, however, that upon taking out a discount mortgage you feel comfortable that you will be able to make increased repayments at a later date.