Negative interest rates

minimike2

"In reality, the Jyske mortgage borrower in Denmark is likely to end up paying back a little more than they borrowed, as there are still fees and charges to pay to compensate the bank for arranging the deal, even when the nominal rate is negative."

The banks all have collars on the trackers these days including some varied terms on old lifetime rates. There is not going to be a situation where people are paid for having a mortgage.

Brock_and_Roll

Most (sensible) Nordic banks have a "zero lending floor" (and part of the reason is that many of their old systems cant handle the concept of negative rates as it was never envisaged when these systems were set up)

bigstevex

The woolwich rings a bell, there's got close to zero, I think there was something in the T&Cs about the lowest it could go so it didn't go negative. We nearly took one out with them back in 2007, quite gutted we didn't

Rizzo1987

Thanks for all the responses, yes it was the Dutch news that caught my eye. I wonder if their property prices have risen as a result.

Dandytf

davidmcn wrote: »

"Collars", probably?

I've certainly seen index-tracking facility agreements where the definitions make clear that the interest never becomes a negative rate.

That's similar to my Nationwide tracker which I think never drops below 1.4% approx asa don't have the details in front of me