@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.

@TheLancashireman

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.

@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.

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@TheLancashireman

Consumer choice - like the Brits like being ripped off by banks

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