A discounted rate mortgage offers you reduced repayments for a given term. This interest rate is discounted from the lender’s standard variable rate, for an agreed period from the start of the mortgage.
The lender’s standard rate will be different from the bank of England Base Rate.
The borrower is guaranteed to pay a set amount below the standard variable rate for the period of the discount. The standard rate can go up and down, but the discount amount remains fixed during the agreed period.