A fixed rate is just a derivative product (an Interest Rate Swap) attached to the mortgage, and people are happy to buy and sell them, why would you say it woul

A fixed rate is just a derivative product (an Interest Rate Swap) attached to the mortgage, and people are happy to buy and sell them, why would you say it would not exist in a free market? Case in point: there is no such government policy in Spain, yet most banks happily offer fixed rates. You just need to hedge the fixed mortgage you are selling and add some interest to make profit.