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  1. beorhthelm

    Mortgages - why the difference?

    you can get ~3% fixed 10yr here, because the pricing is based largely on the current base rate, the current cost of financing the money, not the future cost. i couldn't tell the deep technical reasons for this, just saying that's the way it is.
  2. beorhthelm

    Mortgages - why the difference?

    that would leave them exposed to a large currency risk. generally you borrow and lend in your local currency, unless you are private equity and you have a risk profile and margin that overcomes the currency risks (and can hedge a lot of it). people do borrow on Euro accounts to buy in the UK...
  3. beorhthelm

    Mortgages - why the difference?

    the difference is about 1.5-2% which is about consistent with historic difference. it looks a bigger margin when looked at in isolation of the current context. there is a difference to account for beyond the basic cost of money in Euro, maybe a Deutsch-phile could illustrate the many cultral...
  4. beorhthelm

    Mortgages - why the difference?

    they do? the ECB has set their interest rate to 0% and money markets follow the central bank rate. im sure there's a number of other factors meaning German mortgage rates are traditionally below that of UK rates, currently the number one reason is the very low interest rate due to the state of...
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