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By international pot, I mean that say Barclays, who have a European presence, can surely borrow some European money to lend out at the lesser rate in the UK? i thought banking is an international game and banks are not restricted to their geographical location? I have not understanding of this...

But international banks must have access to the same pots of money? So in some respects surely your theory doesn't hold?

I agree. You can get a 15 year fix for about 1.5% which easily trumps any UK mortgage. As I say, international banks must have access to the same money.

Here's a genuine question, German 10 year fixed mortgages come at a rate of 1.35%. Looking at similar UK products they're twice the interest rate. Why is this? What causes this? I would have thought money was at a similar rate? And if it isn't surely a UK bank would borrow off the 1.35% bank and...