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Introductory loan

Introductory loans are often used to entice borrowers to take out their mortgage with a particular lender. There are usually some great deals on offer - but make sure you understand the cons, as well as the pros.

What is an introductory loan?

Some lenders will offer home loans with a particularly low interest rate for a short period at the beginning of the loan term - to attract borrowers. Also known as a honeymoon rate, this rate generally lasts only for around 12 months before it rises and reverts to standard variable rates.


What are the pros and cons?


  • Usually the lowest available rates
  • When payments are made at the introductory rate, the principal can be reduced quickly
  • Some lenders provide an offset account against these loans


  • Payments usually increase after the introductory period

Talk to your local broker today

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