From: "Tumbleweed" 
Newsgroups: uk.finance
Subject: Re: VARIABLE RATE V FIXED RATE
Date: Sun, 4 Apr 2004 16:20:51 +0100


 wrote in message
news:cl8070l4egr64lqbobjnvl07tk0a7fbem2@4ax.com...
> On Sun, 4 Apr 2004 15:57:11 +0100, "Tumbleweed"
>  wrote:
>
> >
> > wrote in message
> >news:4sqv6058nrj71hnrji5sepgdjvq39t5rfq@4ax.com...
> >> From the Property Times
> >>
> >> "homeowners continued to shun fixed-rate mortgages, opting for cheaper
> >> variable rate ones instead. Just 21 % of new loans taken out were
> >> fixed rate...while 77 % were variable deals, with interest rates
> >> averaging 4.57 % compared with 4.85 % for fixed-rate mortgages."
> >>
> >> i find that incredible. i assume a fixed-rate mortgage is fixed for a
> >> period of 10 years. why would people take such a gamble on interest
> >> rates remaining low for .25 % ?
> >
> >As RR said, you assume wildly and wrongly. A large proportion will be
fixed
> >for 2 or 3 years.
> >
> >
> >> surely if rates fo up by a couple of points those on variable rate
> >> mortgages will be left looking very foolish indeed.
> >>
> >> i also assume that these variable rate deals are only popular when
> >> interest rates are very low - as they are today.
> >
> >Again, you assume incorrectly, variable rate is the norm and has been for
> >years!
> >
> I am looking for enlightenment here so please post some stats .

*I* dont need the stats! You go look.

> thanks.
> PS
> is it not the case that they are the norm in the UK but shunned like
> the plague in France for example ?
>

I dunno, this is uk.finance.

-- 
Tumbleweed

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