Re:A Black Hole Engulfing the World's Bond Markets
by pintxo on Sunday July 28, 2019 @02:32PM
(#20549079)
Fixed rates are the default in Germany. You would have a hard time trying to find a bank offering a variable rate to a normal customer. They have them, but they are surely not standard and fortunately not offered aggressively. I am unaware of any such regulation, but there probably is one.
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Re:A Black Hole Engulfing the World's Bond Markets
by noir_lord on Sunday July 28, 2019 @03:43PM
(#20549448)
In the UK it's mostly fixed for X years (usually a low number 2-5) then variable rate for the remainder.
You can go longer but the bank will factor that with a higher fixed rate to offset variation.
Re:A Black Hole Engulfing the World's Bond Markets
by SilasX on Sunday July 28, 2019 @06:07PM
(#20550090)
In US lingo, that would be referred to as an adjustable rate, like "5/1 ARM" (fixed for five years, then adjusts each [one] year). When they say "fixed" in the US, they mean fixed for the full term.
I'm honestly surprised that became the standard, it seems like a lot of risks for the banks for what they're getting. I think it has something to do with Fannie Mae and Freddie Mac preferring to buy some mortgages and absorb the risk?
Re:A Black Hole Engulfing the World's Bond Markets
by pintxo on Monday July 29, 2019 @05:36AM
(#20552873)
Germany has 5, 10, 15 and 20 year mortgages as the „default“. With the longer ones having a legal exit option (only for the Customer) at the 10 year mark. So in case the interest goes down, you can always refinance after 10 years. Independent of your Bank agreeing to it.