Discount, Capped, Cashback Mortgages

Discount Rate

A discount rate is a type of variable rate mortgage where the interest rate is set at a discount below a rate of interest, typically the lender’s Standard Variable Rate (SVR) for an initial period of time, typically two or three years.

The obvious benefit here is that the rate is lower, so your repayments will be cheaper. However, if interest rates rise, you can expect your repayments to increase too. You also need to be aware that lenders have differing SVRs, so you may need help in working out which discount deal is most suitable and the most cost-effective option for you.

Capped Rate

A type of variable rate mortgage, but these have an interest rate ceiling, or cap, beyond which your payments can’t rise.

The interest rate is often higher than that available on other variable and fixed rate mortgages and the cap can be set quite high. However, it provides the certainty that your payments will not rise above a certain level.

A capped rate is normally only available for an introductory period, which can typically be from two to five years.

This type of mortgage may also have a minimum rate of interest that the lender will charge for a specified period. This is referred to as a ‘collar’.

Cashback Mortgage

This mortgage comes with a cash sum that’s paid to you once your purchase or remortgage has been completed and your mortgage is in place.

The amount you receive is normally expressed as a percentage of the amount you have borrowed, although it can be a fixed amount. It’s important to be aware that this type of mortgage may not be offered at a competitive rate and might mean that you’ll be paying higher monthly payments as a result.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.

Why use Miles Rhodes

You’re protected

An important thing to understand is that when you receive mortgage advice, Miles Rhodes has a duty of care to you. We will recommend a suitable mortgage and be able to justify why the particular mortgage we have chosen is right for you.

In contrast, if you go directly to a high street mortgage lender, don’t take advice, and end up with a mortgage that later becomes unaffordable, you may not have so much legal recourse.

All our mortgage advisers are qualified

There’s an awful lot to think about when choosing the right mortgage. It’s not as simple as just opting for the cheapest fixed or tracker rate mortgage you can find!

Mortgage advisers have to be qualified to give you mortgage advice, whereas you may not get that kind of guarantee if you ring up a lender’s call centre.

We are on your side

Miles Rhodes will look for the best mortgage for you. We aren’t on the lender’s side, we are on yours, and we give you access to far more products than if you went direct.

You will get unbiased advice and will be able to choose from a range of lenders and subsequent products, rather than being restricted to the single range of the lender you go to.

We know the industry

Mortgage criteria has tightened massively over the last few years, with the Mortgage Market Review being the latest, and arguably widest-ranging, development.

It’s been designed to ensure borrowers can prove affordability, even in the event of a rate rise, and those extra checks have understandably increased application times.

Our Reviews

Mark Syer

7 months ago

Mr dave bates has been most helpful and understanding in dealing with my new mortgage. I would definitely recommend him and miles rhodes to others.

Richard

1 day ago

I turned to miles rhode to review my mortgage; vicky hasdell took on my case. She is local to where i live and that eased our meetings. She reviewed my existing mortgage and my current financial position. She presented options to me and carried out my read more

Emma Hoe

2 weeks ago

I came to craig at miles rhodes after being told by my own bank that my options for selling my home were bleak. I genuinely thought i was heading toward financial ruin. A family member recommended craig, and from the very first conversation he was personable, read more

Stuart Boddy

8 months ago

I had an excellent experience working with craig towle as my mortgage advisor. He made the entire process simple and stress-free by clearly explaining my options and guiding me through each step. Craig was always professional, approachable, and quick to respond to any questions i had. read more

Andrew Peeling

8 months ago

Matthew is brilliant at his job! He recently helped me set up my new mortgage. He is very professional and knowledgeable in not only mortgages but also with insurances too. He was always quick to respond to any questions i had and explained everything in full. read more

Kat T

4 months ago

I can’t recommend mrs nicky holbrook enough. Her professionalism and extensive knowledge made my remortgage process stress-free. She was always available to answer my questions and provided fantastic assistance throughout. If you are looking for someone who is extremely knowledgeable, always available for questions and read more

Want to know more?

To find out more or arrange a meeting with us, please call
01362 423042, or email contact@milesrhodes.net

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