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Mortgages for first time buyers

Discount Rate Mortgage Deals

Discount rate mortgages are a type of variable interest rate where a discount is applied on a specific interest rate – usually the lender’s SVR (Standard variable rate). Depending on your specific deal, the discount can be applied for two, three or five years.

Some lenders offer a lifetime discounted rate which lasts for the entirety of your mortgage.

Because discount rate mortgages are a type of variable interest rate, your payments could go up or down, depending on the lender’s SVR. Once the discount ends, you’ll more than likely be placed on the lender’s SVR.

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What are the pros and cons of discount rate mortgages?

Many buyers are attracted to discount rate mortgages because they have the term “discount” in their title. And whilst they have some perks, there are some drawbacks too.

One of the benefits of having a discount rate mortgage is that when interest rates are low, your monthly payments will be lower. The flipside is that your payments could rise if interest rates rise. Some lenders also have an interest rate collar which means your monthly payments can only go so low.

Discount rate mortgage arrangement fees can often be less compared to other types of deals. But something else to consider is that discount rate mortgages often come with an Early Repayment Charge, which will come into effect if you pay off your mortgage early or remortgage with another lender during the introductory period.

Are discount rate mortgage the best value?

This really depends on every person’s individual set of circumstances. The term “discount” sounds like a great deal but that doesn’t mean that they are in fact the cheapest deal on the market. Because discounted mortgages have variable rates, they don’t offer the same payment security as say a fixed rate mortgage. So what seems like a good deal to begin with may not be in 3-5 years. That’s why it is so important to speak to a professional mortgage adviser before you commit to a rate.

Thinking of remortgaging?

Remortgaging allows you to switch provider or mortgage products to save you money and to suit the changing requirements of your lifestyle.

Before remortgaging, or before you decide to remortgage with your existing provider, it is essential to speak with an independent mortgage expert.

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Mortgage Calculators

Our online mortgage calculators have been designed to help you with the most common mortgage questions such as ‘how much can I borrow?’ and ‘how much will it cost?’

To get a more accurate idea we recommend that you speak to one of our expert mortgage advisers.

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Why choose

We compare over 70 lenders

We compare over 70 lenders to ensure you get the very best mortgage deal suited to your lifestyle. We’ve been around for a long time and we know the mortgage providers inside out.


We offer a personal concierge service so you will meet us face to face. Our expert mortgage advisors will provide you with all the information you need to make an informed decision.

There are no hidden fees

You will never pay more than 1.95% of the mortgage balance. Our average fee is 1% and the minimum fee you will pay is £1295.

We make it quick and easy

We can get you a mortgage in as little as two weeks. We’ll help you fill out all of the forms and will never put you forward for anything you are not likely to be accepted for.

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With access to the entire mortgage market, the team at TaylorMade can help you find the most suitable mortgage product for your situation.

Whether you’re a first time buyer, a self employed small business owner or a buy-to-let investor, our mortgage experts can help you get a great deal.

To learn more about our service, please get in touch with one of our expert advisers.

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If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

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TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.

Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details:

Your mortgage will be secured against your property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1.95% of the mortgage amount, subject to a minimum fee of £1,295 and an overall maximum fee of £2,995 payable on completion.