Quick mortgage question

[dirky dirk]

Been a while since I had one.
So.
Say you buy a house 200k
And you get the discounted rate for 2 years
Say three percent

Then on the normal deal what happens cos standard rates are very low?
So when you go on your standard rate would you pay less because the rates lower than your deal for the first two years

[Stevemr]

Depends on how much deposit you have.
Discount rate would likely be lower than 3%.
End of deal would revert to a higher standard variable rate SVR.
You would then get another deal, if appropriate.
Speak to a broker, sarnie on here has a good reputation and I have never disagreed with anything he has stated.
(Ex broker.)

[timberman]

don't confuse banks standard variable rate with Bank of England rate,

you're not going to be reverting to anything like 0.1% at the end of 2 years,

most lenders SVR's are 3.5% or more

[Malcolm E Boo]

Every SVR I have seen recently is higher than a fixed rate

[dirky dirk]

Right so it’s like the mortgage I had where you come to the end of the deal rate and it gos up so you shop around?

[PeteinSQ]

Yes. Your lender will be able to tell you what the SVR is, it is most likely higher than what you're paying now so you will want to look for a new deal. A lot of lenders will actually just offer you one to keep you.

[Jaguar99]

Like others have basically said, all rates are low at the moment because BoE base rate is low but rates you get on a deal now will still be lower than the standard rate

The only way you will get the scenario you describe would be if you took out a deal years and years ago when all rates were higher and switched to standard now that rates are lower

[dirky dirk]

Cheers. Daughters asking for advice and not sure.
I wish I’d bought two houses when I first got mine!