Mortgage lenders have two basic methods for charging interest on your mortgage: variable rate or fixed rate. With variable rates, the lender will vary the interest rate during the term of your mortgage, usually by reference to the lender's standard rate or some other benchmark such as the bank base rate.
These rates go up and down during the loan period, and although the change is usually small increments (maybe 0.25 percentage point), the change may have significant impact on your monthly payments over time.
What is your prefered method of repaying the interest?
Mortgage lenders have two basic methods for charging interest on your mortgage: variable rate or fixed rate. With variable rates, the lender will vary the interest rate during the term of your mortgage, usually by reference to the lender's standard rate or some other benchmark such as the bank base rate.
