Re: Mortgages at 7 times salary for 40 years
Posted: December 30th, 2021, 12:51 pm
Hmm - all puiblic sector jobs - I doubt if any of them will get a pay rise equal to inflation.
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gryffron wrote:dealtn wrote:I would expect the bank, unlike it seems the energy companies, to hedge their fixed rate exposure.
How? How can they hedge their entire loan book? For 40 years! Surely they would then have to pay more for their loans than anyone else. They cannot completely hedge the risk and remain competitive - exactly the problem energy companies had.
Gryff
gryffron wrote:So presumably, in a dozen years time, when base rates are 10%+ and house prices crash, habito will be unable to fund its debts, will go bust and all these people will lose their "fixed" rate mortgages. Just at a time when variable rates are highest and house prices lowest, so they all lose their homes and go bankrupt.