A Mortgage of the fixed-rate variety is a mortgage where the interest stays the same throughout the period of repayment.
Mortgage of the fixed-rate variety are sometimes more costly than other varieities of loan for home purchase, and this is because of the risk involved. To let you see this, if human being gets a Fixed-rate mortgage when the base rate is 5%, and then the base rate jumps to 11%, the lenders will be missing out on 6% of interest – so they may on occasions charge a little in addition to compensate for this.
Mortgage of the fixed-rate variety are fairly popular when the base rate is low, and can be good for a person who wants to know how much they will be spending on a monthly basis.
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