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gareth jones
garethjonesfurniture
Posts: 5 Forumite
Why can French banks offer 25 year mortgages fixed at 1.55% - and survive....?
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Comments
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The amount you can borrow in France is restricted by both the property value and income. Definition of income being far more restrictive than the UK. Likewise buying a property in France is more expensive.0
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True - house-buying is more expensive in France, but thats what you have to pay to the estate agent, lawyer, taxation - not the bank. And French property prices are much lower than UK, for many, many reasons. (UK credit also depends on value of property and income.) My question is about credit- how can French banks offer v.low interest rates fixed for up to 25 years, but UK banks will only risk fixing for 5yrs max. and at much higher rates?0
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It!!!8217;s the business model that British banks follow which is based on what customers want.0
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My mortgage is fixed for seven years and there are certainly longer fixes available, ten years.0
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You may want to edit the thread title.
Long term fixes were tested in the UK but consumers didn't buy them. So, the market is just not there.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Yep. In 1990 Bear Stearns HomeLoans were one of the first to offer a twenty-five year fixed rate.
Take-up wasn't great.
Since then, the maximum has tended to be ten years.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
If UK banks offered a 25 year fix at 1.55% there would be a stampede for it! The best 10 year fix is Barclays currently at 2.59% as far as I know. Much shorter and higher rate.0
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In the US it's commonplace but apparently the demand is not there in the UK. Otherwise a smaller bank would've tried it and got all the stampede...0
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