@HereToChewGum @riggbeck @kennethb
I have mentioned this before - why are variable rate mortgages after a short fixed term, the norm in the UK whereas in most other European countries fixed rate throughout the life of the loan is the norm?
A colleague from France, was able to remortgage his house at 1.44% fixed for the life of the loan (20 years) back in about 2012!
@Paulos_the_fog
Longer-term loans often come with penalties for early termination. The UK housing market is quite dynamic compared with Germany (where I live) - people in the UK tend to move frequently to match their needs and financial abilities, so long terms aren't as attractive. Maybe France is similar?
Also: in the UK, switching to variable at the end of the fixed term isn't compulsory. You can usually negotiate another fixed term. Variable rate is the default if you don't renegotiate.
Not sure what you are trying to say here - the fact remains that almost all French mortgages are fixed rate for the whole term whereas UK ones are not. My colleague had to pay a modest early termination penalty but it was still more than worthwhile for him to re-mortgage.
Germany is a bit of an outlier as so many people there choose to rent rather than buying, whereas in France and in the UK the exact opposite is true.
Consumer choice - like the Brits like being ripped off by banks
@Paulos_the_fog
I'm not sure what I was trying to say either. Except that the mortgage market in the UK is reasonably flexible and the apparent lack of long-term fixed rate deals might result from consumer choice. Perhaps coupled with fear of early termination fees (either real or imagined). I took out my last UK mortgage around 1988. Rates were high at the time ( ~12%) and falling, so a fixed rate deal made no sense.