The discount is taken from the lenders standard variable rate.

The discount only applies for a period of time unless your policy states otherwise.

The interest rate will change every time the standard variable rate changes.

The discount term can range from less than a year to ten years or more. A few lenders may offer a discount period for the whole mortgage term.

Stepped mortgages give you the option of gradually increasing your repayments when the discount period is nearing, avoiding big repayment scars.

A discount mortgage is great for borrowers looking for a cheap initial repayment scheme.

The mortgage is not ideal for those who have a strict budget as payment do vary every time the rate is changes.

The redemptions fees etc are not as severe as fixed rate mortgages.