Discount mortgages are usually most beneficial to new customers and first time buyers. Set up similar to a standard variable rate mortgage, a discount mortgage simply gives a discount on the rate that has to be paid back.

Usually, these discounts will last for just a few years, specified at the time that the mortgage is taken out, at which point the interest rate will revert back to the standard variable rate mortgage.

Discount mortgages are good for first time buyers, as they can give cash relief early on in the mortgage deal, which means that they can focus on making the property they have moved to, into the home that they want, through refurbishing and redecorating.

One thing to be aware of, however, is even if one bank is offering a larger discount on the interest rate than another, because the standard rate is individual to each bank, a discounted mortgage may not be cheaper than an alternative standard rate from another lender.



House Price





Min (5% of house price)£2,500


Max (30% of house price)£15,000

Interest Rate





Min25 Years

30 Years

Max35 Years

Without Help to Buy

Your deposit£2,5005%
Your mortgage£47,50095%
Monthly Payment£213.30 

With Help to Buy

Your deposit£2,5005%
Help to Buy Loan£10,00020%
Your mortgage£37,50075%
Monthly Payment£168.39 

This calculator is provided to give you basic guidance only. This information is computer-generated and relies on certain assumptions. It has only been designed to give a useful general indication of costs. Its important you always get a specific quote from the lender and double-check the price yourself before acting on the information. We cannot accept responsibility for any errorsand recommend that you obtain exact figures from a specific lender before committing to any mortgage.