What Is a honeymoon or discounted introductory Variable Interest Rate?
On discounted variable-rate mortgages, many lenders provide an introductory interest rate. After the initial period, it converts to the lender’s very high standard variable interest rate. Credit card companies follow the same logic. They provide a low introductory rate on outstanding balances. After the promotion, the interest rate defaults to the company’s more expensive rates.
Savvy financial individuals such as investors flock to these introductory interest rates. Mortgage House does not recommend honeymoon offers because it converts to a very high standard variable rate offered at that time.
Customers interested in avoiding the standard rate can contact their lender before the introductory one expires. It’s always important to remain proactive. Before a customer agrees to a loan’s terms, understand how the introductory period works.
For example, the loan may have a mandate that only allows the standard rate. Double-check the fees for breaking the loan if you opt to refinance.
Mortgage House aims to help all clients achieve their financial goals. For homeowners who intend to remain in their new home for 30 years, beneficial mortgage products exist.
We also offer loans for investors, builders, and owner-builders. Our loan specialists have the tools to find the best products for most financial circumstances and goals. You can also use our car loan calculator.
Honeymoon or discounted introductory variable rate interest rate conclusion
All lenders set a standard variable interest rate. To find out the rate that Mortgage House offers, contact our loan specialists. They take the time to discuss loan product options and answer client questions.