NoRegretsCoyote
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Apparently the UK government is trying to push the industry toward offering more long-term fixed rate products.
The reason for traditionally short terms is:
It mentions a new lender in Ireland (M&G) offering fixed-rate products. I had never heard of this, is it using a different brand name here?
I've always wanted to fix my mortgage for long. But the cost of doing so never seemed worth it so I've always stuck with one- or two-year fixed rates at a time.
The reason for traditionally short terms is:
the UK’s fondness for short-term deals is also a product of its underlying financing structure: most home loans are funded by deposits, the bulk of which can, in theory at least, be withdrawn at any time. The longer the fixed-rate term a bank lends for, the more it will need to rely on potentially expensive derivatives to structure it.
It mentions a new lender in Ireland (M&G) offering fixed-rate products. I had never heard of this, is it using a different brand name here?
There are signs that non-banks may be keener to take up the long-fix challenge. M&G, the asset manager, recently launched 20-year mortgages in Ireland, traditionally similar to the UK in its mortgage structures.
I've always wanted to fix my mortgage for long. But the cost of doing so never seemed worth it so I've always stuck with one- or two-year fixed rates at a time.