Discount loans meet market need.(Brief Article)

Financial Adviser, November, 2004

DISCOUNT mortgages could be a wise option for homebuyers in the current climate, an IFA has said.

Paul Monk, partner with Merseyside-based Balmoral Associates, said discount mortgages that reverted to the Bank of England base rate would be cost-effective, as he expected interest rates to decrease over the next few years: "In three years' time, we will probably be at the bottom of the interest rate cycle. Therefore a discount rate that gives you a cheaper rate now and then a decent rate in a few years time would make sense."

Mr Monk's comments follow the launch of a number of new mortgage deals by Alliance & Leicester.

Included in the range is a new low-start two-year discount 'fee saver', which is offering a 2.4 per cent discount off A&L's...