| This scheme gives the customer a guarantee that
for a certain period of time, as agreed at the commencement of the
loan, the rate charged will be reduced by a specified percentage.
If the standard rate changes the discounted rate will also change,
whether this is up or down.
This type of scheme may attract an initial fee to the lender to
set up the scheme.
In addition, depending on the type of discount arranged, there
may be redemption penalties on the loan if it is redeemed within
a certain period of time.
When the discounted rate expires the interest rate will revert
to the lenders variable rate.
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