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Cheap Home Loans, Honeymoon Loans

Honeymoon Loans or Cheap Home Loans offer borrowers a discounted rate of interest for a limited introductory period (usually 6 – 12 months), after which most loans will revert to the lenders standard variable rate of interest. Honeymoon loans are generally marketed to young families or first home buyers.

The main advantage of these loans is that they offer a mortgage at a rate lower than most other home loans on the market, hence helping first time buyers find the necessary funds to settle and still afford loan repayments in the immediate post settlement period.

Some lenders impose hefty penalty fees, should the borrower decide to refinance at the completion of the Honeymoon period. Therefore it is very important to assess any Honeymoon loan for exit penalties before deciding to proceed