Hi,
I have heard in the past that getting the lowest discount rate over 3 years, and overpaying as much as possible during this time is the most cost effective way to run a mortgage.
Is this still good advice?
Does anyone know of a low discount rate mortgage with no lengthy tie in to standard variable afterwards?
Regards
Philip
Yes, unless the discounted rate is so ridiculously low that you could earn a higher rate in a savings account. Then you should instead channel all your cashflow into savings, paying as little as you can get away with into the loan account.
Once the discount runs out, empty the savings into the loan account.
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