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Time frame in which the interest rate of a mortgage is discounted.
Mortgage lenders will attract customers by offering special discounted rates fro initial periods. These products then revert to the standard variable rate after the initial period. To change loan there may be a redempton penalty for a certainperiod in order to tie in the borrower to prevent mortgage hopping.
When looking at the mortgage borrowers want, hey should look at the factors that make up the loan. They should work out what is important to them and then prioritise based on that.
Benefit periods are the hook to win the business so applicants should loook into the downsides of attractive initial rates. AS this is quite complex it can be useful to get advice from a mortgage broker.
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