Generally, five-year fixed mortgage rates are higher than two-year because the borrower is paying for the security of knowing their rate will not change for a longer period.
Thereof, what is a 2 year discounted mortgage?
Discount mortgage deals can last for two, three or five years, or the entire term of the mortgage, which is typically 25 years. As with any type of variable mortgage, a discount mortgage means your monthly repayments can go up as well as down. For example, say a lender’s discount mortgage is 3% and its SVR is 5%.
Herein, is there a 2 year mortgage? A 2–year fixed mortgage will have a constant rate of interest over a term of two years. The term should not be confused with the amortization period, which is the length of time it takes to pay off your mortgage.
Additionally, is 2.25 A good mortgage rate?
Whether or not you qualify for 2.25%, rates are ridiculously low. The truth is, the lowest advertised rates almost always go to top-tier borrowers; those with excellent credit scores and 20% down payments. So a 2.25% mortgage rate will be out of reach for many.