In an extra time segment of The Rate Stuff, a video series by MPowered Mortgages, Jack Izzard and Peter Stimson discussed the seeming contradiction that, despite being “near the bottom of the interest rate curve,” demand for long-term mortgages is at a low point.
This is in contrast with other countries, where longer-term mortgages can be “very much the norm.”
This picture, they explained, is due to a range of economic headwinds affecting the UK market.
The fact that what small interest there was in long-term fixes has “died a death,” according to Stimson, comes down to swap rates and gilt rates, the pressure from investors on lenders to place higher rates on these products, Government borrowing costs, and more.
They also discussed the ongoing effects of quantitative tightening, and the other global economic factors at play.
The Rate Stuff Extra takes place in between main episodes of The Rate Stuff.
Izzard said: “This is your bit in the middle between the main episodes, where we choose one big topic.
“We’re always looking for things to cover, and this week was all about those long-term fixed rates.”
