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30 year fixes seem so alien to me, 2 or 5 years are the most common in the U.K. Are there shorter interval fixes? Is it just a cultural thing where lifetime fi
by chgs 2y ago
30 year fixes seem so alien to me, 2 or 5 years are the most common in the U.K.
Are there shorter interval fixes? Is it just a cultural thing where lifetime fix is the norm?
- devinegan 2y agoLifetime fixed rate is more common especially after 2008 when floating rates contributed to crushing the US housing market. Even before 2008 fixed was more common. The fixed rate is why those in the US who have a ~3% rate from a few years ago are “stuck” as it is difficult to justify giving it up.
- nunez 2y agoMakes total sense when owning a home is everything here but very few can afford a 5y mortgage against a $300k+ asset.
- tzs 2y agoI believe they are talking about 2 or 5 year rate locks, not 2 or 5 year mortgage terms. Most UK mortgages are 25 or 30 years, but they switch from a fixed rate to a variable rate after the first few years.
- fuzzythinker 2y agoThat sounds worst that you are binding into a contract that you have no idea how much you have to pay for so many years.