Originally Posted by TBM
Originally Posted by britmog
Does the UK not have fixed mortgage interest rates? Over here the common mortgage terms are 15 and 30 year with fixed interest rates, anyone with sense either took out or refinanced their mortgage when the interest rates were low at 2.5-3%. The problem the housing market is suffering from currently is that people are not selling because their mortgage is at the low rate and they can't match it.


Yep -you can get fixed rate mortgages for 2 to 5 years. I took out a 5 year one when I first bought my house, and when it ended my monthly payments dropped by 30%.

Work colleagues have are coming to the end of their fixed terms, and the cost of new fixed rates are usually higher than the current base rate for obvious reasons.


Ok, I understand. I refinanced my 30 year loan to a fixed rate 15 year loan at 2.62% so that it would be paid off when I reach 74, this meant I kept my money in my retirement accounts earning an average 6% (even taking into account the downturn). So at 74 I will pay off the mortgage, growing my principal + equity and gaining the tax advantages, it can be good if you are careful and use money to make money.

Bruce
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