Variable Rate Mortgage UK

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Background
Discount rate mortgages in the UK can offer some of the best deals for your property finance. Indeed the discount variable rate can be the best if there are no extended tie in clauses.

Extended Tie Ins

These cause problems, because when the discount rate ends, e.g. after 2 years, the mortgage payments reverts back to the very high base rate and can cost a lot in the long run. This could put you under financial strain and cause illness and stress. So find a mortgage without an extended tie in and make sure you use a recommended Independent Financial Advisor.

Ideal discount mortgage scenario

Get a discount mortgage with no extended tie ins and then keep on changing it at the end of two years.

It's likely these would provide a better deal than the fixed rate mortgages. Note: this is a personal opinion and you alone must make that choice. I have a mortgage with the Abbey National Santander in the UK which will last for another 18 months. At the end of this time I will be looking for another good deal, preferably with Santander, so that I will beat the fixed rate mortgage trap. Remember renewing variable rate deals are great especially if you can do it, without extended tie ins, and with the same bank to save on transaction costs.

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