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 We like stepped discount mortgages

With the best of the low fixed rates now gone and competitive trackers few and far between, people are turning back to discount mortgages.

One area deserving a closer look is the stepped discount. This offers a larger discount in an initial period with the dis count then decreasing in a stepped fashion.

A typical two-year stepped deal available at the moment will offer a 2.5% discount off a lender's standard rate in the first year (pay rate 3.04%) and then 1.9% discount in the second year (pay rate 3.64%).

These deals are ideal for first-time buyers.


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