2 ms·

that's how all bonds/loans work

• jstanley 1y ago
  It's not how bonds work because you can't pay off a bond early other than by buying it on the open market at the prevailing price. And furthermore, not all loans are fixed-rate. UK mortgage rates are relative to the Bank of England base rate.
  • MattPalmer1086 1y ago
    Some variable rate mortgages in the UK are. You can also get fixed rate.
    • jstanley 1y ago
      Fixed-rate mortgages are offered in the UK, but they are only fixed at a good rate for a short period of time (maybe 2-5 years) before they go up to an unreasonable rate, which would force you to renegotiate the mortgage to get the new prevailing rate at that time. So it's effectively a variable rate anyway.
      • MattPalmer1086 1y ago
        Well, a series of shorter term fixed rates. Which I guess makes it variable over the entire lifetime of the mortgage, but a bit more predictable than a true variable rate. You can get 10 year fixes, but they are of course more expensive than shorter term fixes.
  • keernan 1y ago
    >you can't pay off a bond early Only assuming it doesn't have a call provision.