Discounted Loan
A discounted loan is a loan that might be offered to you at a special rate for a certain period of time. For example, a lender may decide he can give you a loan at a discounted rate 1% under their usual rate (for someone in your circumstances) for a period of two years. After the two years are up, you would revert to the standard APR rate. The discounted loan rate can still go up or down according to the Bank of England base rate, and at the same time remain 1% below the lenders standard rates.
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