Hey everyone, I’m new to the UK and I’ve got to say, I’m pretty confused about how mortgages work here.
Back in my home country, we get one mortgage and that’s it. But here, it seems like you have to keep getting new ones every few years? What’s up with that?
I’ve heard people talking about remortgaging every 2-5 years. Doesn’t that mean you’re always paying new fees? And what if the rates are worse when you have to remortgage?
Also, why aren’t there more options for long-term fixed rates? Like 20 or 30 years? Wouldn’t that make it easier for people to plan their finances?
I’m curious to hear what you all think. Is this system working well for you? Or do you think it needs to change? Thanks for any insights!
Interesting point! I’ve always wondered about other countries’ systems. What’s it like where you’re from? Do you feel more secure with longer fixed rates? I’m curious how it affects people’s decision to buy homes. Maybe there are pros and cons to both approaches we haven’t considered?
mate, the mortgage system here is bonkers! i’ve been through it a few times and yeah, those fees add up. long-term fixed rates would be ace but banks make more money this way innit? tbh, i reckon the whole thing needs a shake-up. it’s proper stressful having to remortgage every few years. wish they’d sort it out!
As someone who’s been through the mortgage mill a few times, I can say our system has its quirks. The frequent remortgaging can be a double-edged sword. On one hand, it allows flexibility to switch to better rates if the market improves. On the other, it’s an administrative headache and can be costly if rates rise. Longer fixed terms would provide more stability, but they’re rare because lenders are wary of long-term interest rate risks. It’s not perfect, but it’s what we’ve got. A overhaul could be beneficial, but it would need careful consideration to balance consumer needs with market realities.