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While mortgages do go on for decades (typically), people will frequently re-mortgage based on new interest rates. e.g. in the UK it's typical to sign up for 2-
by joncrocks 10y ago
While mortgages do go on for decades (typically), people will frequently re-mortgage based on new interest rates.
e.g. in the UK it's typical to sign up for 2-10 year deals, with the interest increasing after these offer periods, meaning people will likely switch to another deal.
So there will be a certain amount or organic churn.
- twic 10y agoNot enough churn, though. I worked on mortgages for a UK high street bank a while ago, and they were still running the mortgage systems for every bank and building society they'd taken over in their decades of growth, plus a few different attempts at building one system to rule them all.