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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 loa
by 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 agoSome variable rate mortgages in the UK are. You can also get fixed rate.
- jstanley 1y agoFixed-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 agoWell, 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.