72% fall in discount products over past three years

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Although there are now 33% more fixed rate mortgages and 36% more tracker mortgages available than there were three years ago, the number of discounted rate mortgage products available has fallen by 72%.

This are the findings from latest research published by independent financial research company Defaqto.

David Black, banking specialist at Defaqto, said: “There are significant differences in the Standard Variable Rates (SVR) being charged by lenders and given that discounted mortgages tend to be linked to the SVR this is a key reason for their decline in popularity. Lenders with competitive SVRs have little incentive to offer discounted mortgages because profit margins on their fixed and base rate tracker mortgages are better.”””

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