why are fixed rates so high?

Gorgeous_George

Sometimes it may be wise to borrow via an unsecured loan to achieve the better rates available with a lower LTV.

GG

kmmr

Fixed rates are high because the yield curve (cost of money) is very steep so the longer you fix for the more expensive it is at the moment. Even on the retail side banks have to pay a lot to get the money in. You can get 4.75% from Nationwide (and up to 5%) for a 5 year retail bond, so to cover that cost the banks have to charge a higher amount to lend.

Then on top of that the banks have to charge something for your credit risk, reserve some capital (as another poster correctly points out), cover operating costs, and make some money to pay back the taxpayer...

hence - rates are high!