How repayments change for Honeymoon Rates
Choosing a honeymoon rate for your home mortgage can be a great way to keep your interest costs to a bare minimum for the first part of your loan. In most cases, your honeymoon loan should offer you a reduced interest rate for the first year or two, before then reverting to a higher variable rate.
However, it’s really important to consider what you will do when the honeymoon or introductory rate reverts to a higher rate. You may be able to refinance or switch to a lower rate. It is recommended that you discuss this at the time of taking out your mortgage as within a relatively short time the repayments could increase significantly.