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> This is true in the US but it's not true in other Anglophone nations with high real estate prices such as the UK or Australia It was definitely true until ve
by doix 3y ago
> This is true in the US but it's not true in other Anglophone nations with high real estate prices such as the UK or Australia
It was definitely true until very recently. Interest rates of 1-2% weren't unheard of. Many of my friends had to really tighten up their finances when their interest rate from 1.2% to 5%.
- pmg102 3y agoThe low rates was true. But not the 30 year term. Most mortgages in the UK are fixed for 2-5 years so people are much more exposed to fluctuations in interest rates than in the US.
- syndicatedjelly 3y agoWe have the same thing in the US for mortgages, called the adjustable-rate mortgage (ARM). It got a very bad rep after the 2008 housing meltdown so it’s generally seen as a bad tool for consumers these days. Hence the current predicament - many American homeowners refuse to move because it means giving up a sub-4% loan. Which is essentially free money because of the current inflation rate.