4 ms·

It's practically impossible to get fixed rates in europe.

by jdasdf 4y ago

apexalpha 4y ago
It's not in the Netherlands. Practically everyone has fixed rates here. Especially in the past few years with the low interest rates.
- smcl 4y ago
  Fixed for the entire duration of the mortgage, and at the rate the commenter mentioned?
  - apexalpha 4y ago
    Mine is fixed for 20 on a 30 year mortgage but you can always choose between variable, 10 year fixed, 20 year or 30 year. Mortgages are (almost) always 30 years duration. I don't know what country in Europe you can't get fixed rates but it's not the Netherlands, that I know for sure. (Also there really isn't a 'Europe' for these things, every country is different)
    - jason-phillips 4y ago
      > Mine is fixed for 20 on a 30 year mortgage In the United States we don't call that "fixed". We call that an adjustable rate mortgage. For example, my mortgage is fixed at 3% for its entire 30 year term and can properly be called "fixed". People in the United States are leery of ARMs after what happened during the mortgage crisis in 2006-2011 so proper labeling is more important.
      - apexalpha 4y ago
        Ah, right. I could also have picked 30 years for a 'real' fixed mortgage. It just gets a bit more expensive. But it's definitely possible to get 30 year fixed if you really want to, every bank offers it. In the Netherlands an 'adjustable rate mortgage' means monthly, quarterly or yearly variable rates.
      - refurb 4y ago
        Adjustable rate mortgages aren't quite the same. Canada is similar to the UK - you amortize (pay back) the loan over 25-30 years. However, your mortgage is either variable (interest rate floats over time) or fixed (interest rate does change), but the loans are only for 1 to 5 years. At the end, you either "renew" your mortgage with the same lender or you "refinance" entirely. So you can have a "fixed" mortgage, but not for the entire amortization period. But you're correct, it's more similar to the ARM mortgages in the US (potentially fixed for 5-10 years, then floating after).
    - smcl 4y ago
      Ah so what I meant is that in Czech Republic I have a 30 year mortgage with a rate that is fixed at 1.99% for 5 years, and is then variable (or more likely renegotiated) after that period. I am sure I could have instead gotten a 30 year mortgage with a single rate for the duration, but I suspect it would've been higher than the rate. But if you're at a 2% for 20 years that is pretty great IMO - given that our rates are currently through the roof.
room271 4y ago
In the UK it's very common, albeit not for 30 years - more often 2, 5, or 10. See e.g. https://www.bankofengland.co.uk/bank-overground/2020/why-are-more-borrowers-choosing-long-term-fixed-rate-mortgage-products https://www.bankofengland.co.uk/bank-overground/2020/why-are... (In 2020, more than half of new mortgages were fixed for 5 years or more.)
- moonchrome 4y ago
  That's not fixed rates, that's just variable rate with a delay, it's impossible to get a 30 year loan with a fixed rate in Croatia.
colinb 4y ago
No. That’s not the case. I had a fixed rate mortgage in the UK. Now I have one in Ireland. Two of my colleagues have taken them in the last couple of months. They’re very common. But.. in both countries such terms are for a relatively short period. E.g 5 years fixed changing to SVR for the remainder of the loan. I haven’t heard of loans fixed for the entire duration. I would’ve got one if I had found it. I can’t speak for the rest of Europe. It’s a big place you know.
- xyzzyz 4y ago
  That’s not what Americans mean by “fixed rate”. In US, that means 30, or more rarely 15 year mortgage, where the rate is fixed for entire duration. The mortgage where it’s only fixed for some initial period is called “adjustable rate mortgage”. Your comment just supported the person you replied to being correct, that fixed rate (in US sense) mortgage market is nonexistent in most of Europe.
  - the_mitsuhiko 4y ago
    You can absolutely have a 30 year mortgage that is fixed all the way through. It's rare that people take it though, most opt to 5-10 years fixed with variable late afterwards from my own experience (Austria). The standard product used to be fixed rate.
  - namdnay 4y ago
    In France 99% of mortgages are fixed rate, for the entire term.
  - IMSAI8080 4y ago
    They're often called "lifetime fixes" or "fixed for term" in the UK. You can easily get them. The term customers choose is typically 25 years rather than 30. However they are currently running at an interest rate of a little under 4% which is much higher than the rate offered on a typical 5 year year fix. This makes them unattractive when you can just perpetually keep re-mortgaging on 5 year fixes.
    - 4y ago
vladvasiliu 4y ago
As others have said, "Europe" doesn't exist for things like mortgages. In France, for example, the standard mortgage is fixed rate, for the whole duration of the loan, which is usually 20 to 25 years.
jgb1984 4y ago
Uhm my brother just signed a fixed rate of 1.8% for the entire 20 year duration of his home loan. Belgium.
modo_mario 4y ago
what? I got a fixed below 1% rate in Belgium last year. With historical lows on those everyone gets a fixed rate.

It's practically impossible to get fixed rates in europe.

by jdasdf 4y ago

It's practically impossible to get fixed rates in europe.

It's not in the Netherlands. Practically everyone has fixed rates here. Especially in the past few years with the low interest rates.

smcl 4y ago
Fixed for the entire duration of the mortgage, and at the rate the commenter mentioned?
- apexalpha 4y ago
  Mine is fixed for 20 on a 30 year mortgage but you can always choose between variable, 10 year fixed, 20 year or 30 year. Mortgages are (almost) always 30 years duration. I don't know what country in Europe you can't get fixed rates but it's not the Netherlands, that I know for sure. (Also there really isn't a 'Europe' for these things, every country is different)
  - jason-phillips 4y ago
    > Mine is fixed for 20 on a 30 year mortgage In the United States we don't call that "fixed". We call that an adjustable rate mortgage. For example, my mortgage is fixed at 3% for its entire 30 year term and can properly be called "fixed". People in the United States are leery of ARMs after what happened during the mortgage crisis in 2006-2011 so proper labeling is more important.
    - apexalpha 4y ago
      Ah, right. I could also have picked 30 years for a 'real' fixed mortgage. It just gets a bit more expensive. But it's definitely possible to get 30 year fixed if you really want to, every bank offers it. In the Netherlands an 'adjustable rate mortgage' means monthly, quarterly or yearly variable rates.
    - refurb 4y ago
      Adjustable rate mortgages aren't quite the same. Canada is similar to the UK - you amortize (pay back) the loan over 25-30 years. However, your mortgage is either variable (interest rate floats over time) or fixed (interest rate does change), but the loans are only for 1 to 5 years. At the end, you either "renew" your mortgage with the same lender or you "refinance" entirely. So you can have a "fixed" mortgage, but not for the entire amortization period. But you're correct, it's more similar to the ARM mortgages in the US (potentially fixed for 5-10 years, then floating after).
  - smcl 4y ago
    Ah so what I meant is that in Czech Republic I have a 30 year mortgage with a rate that is fixed at 1.99% for 5 years, and is then variable (or more likely renegotiated) after that period. I am sure I could have instead gotten a 30 year mortgage with a single rate for the duration, but I suspect it would've been higher than the rate. But if you're at a 2% for 20 years that is pretty great IMO - given that our rates are currently through the roof.

room271 4y ago

In the UK it's very common, albeit not for 30 years - more often 2, 5, or 10. See e.g. https://www.bankofengland.co.uk/bank-overground/2020/why-are-more-borrowers-choosing-long-term-fixed-rate-mortgage-products https://www.bankofengland.co.uk/bank-overground/2020/why-are... (In 2020, more than half of new mortgages were fixed for 5 years or more.)

moonchrome 4y ago
That's not fixed rates, that's just variable rate with a delay, it's impossible to get a 30 year loan with a fixed rate in Croatia.

colinb 4y ago

No. That’s not the case. I had a fixed rate mortgage in the UK. Now I have one in Ireland. Two of my colleagues have taken them in the last couple of months. They’re very common. But.. in both countries such terms are for a relatively short period. E.g 5 years fixed changing to SVR for the remainder of the loan. I haven’t heard of loans fixed for the entire duration. I would’ve got one if I had found it. I can’t speak for the rest of Europe. It’s a big place you know.

xyzzyz 4y ago
That’s not what Americans mean by “fixed rate”. In US, that means 30, or more rarely 15 year mortgage, where the rate is fixed for entire duration. The mortgage where it’s only fixed for some initial period is called “adjustable rate mortgage”. Your comment just supported the person you replied to being correct, that fixed rate (in US sense) mortgage market is nonexistent in most of Europe.
- the_mitsuhiko 4y ago
  You can absolutely have a 30 year mortgage that is fixed all the way through. It's rare that people take it though, most opt to 5-10 years fixed with variable late afterwards from my own experience (Austria). The standard product used to be fixed rate.
- namdnay 4y ago
  In France 99% of mortgages are fixed rate, for the entire term.
- IMSAI8080 4y ago
  They're often called "lifetime fixes" or "fixed for term" in the UK. You can easily get them. The term customers choose is typically 25 years rather than 30. However they are currently running at an interest rate of a little under 4% which is much higher than the rate offered on a typical 5 year year fix. This makes them unattractive when you can just perpetually keep re-mortgaging on 5 year fixes.
  - 4y ago

vladvasiliu 4y ago

As others have said, "Europe" doesn't exist for things like mortgages. In France, for example, the standard mortgage is fixed rate, for the whole duration of the loan, which is usually 20 to 25 years.

jgb1984 4y ago

Uhm my brother just signed a fixed rate of 1.8% for the entire 20 year duration of his home loan. Belgium.

modo_mario 4y ago

what? I got a fixed below 1% rate in Belgium last year. With historical lows on those everyone gets a fixed rate.