[rigelbm]

In London it's common for people to take 25y~30y loans that are fixed for only 2y~5y. 5 years ago interest rates were 2.5%. If rates go above 10% this year, does that mean a sudden influx of houses in the market because people can't pay their houses anymore?

Edit: Wrong fixed interest rate.

[kioleanu]

I am watching the markets in Romania and Germany and they are completely opposites: in Romania, most people I know went for a no fixed rate loan, meaning they change interest every 3 months. The banks are advertising this as the "cheaper" option - you get 4,8% variable interest now instead of 5,5% fixed. And people go into it with a "how bad could it get" attitude. Meanwhile, there are tens of thousands of new units entering the market (Romania tends to expand cities upwards, building 8-10 stories high buildings). I am really curious about how that market is going to develop.

Meanwhile in Germany, I don't see this option at all, and banks have now started pushing* for fixed rates for 30 years at 3% or save/loan accounts where you save for 10 years and they will give you a house loan in 10 years for 1,8% interest.

* we've got letters from all the banks where we have accounts promoting this

[reuben_scratton]

Does anyone (UK) even offer fixed rate more than 5 years ahead?

[Joeboy]

I think most banks offer 10 year fixes, and there are niche products that are longer. Mine's fixed for 7 years.

[Shamanoid]

I don't think so, we used a mortgage broker for ours and only 2 and 5 years fixed rates @ ±2.3% were offered in September 2021