This type of product is generally the cheapest initial pay rate available but as a discount is based on a variable rate then the monthly payments may vary in line with interest rate movements. For Example, a 2% discount for 2 years where the lender’s variable rate is 5.75% would give a pay rate of 3.75% for 2 years but if the lender’s variable rate was increased to 6% during the initial discount period then the pay rate would now be 4%.