Tim Worstall

It is all obvious or trivial except…

 

 

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Timmy Elsewhere

April 14th, 2008 · 2 Comments

At the Business (now the Speccie).

Monstrous foolishness on the subject of bankers’ bonuses and a leeetle problem in the housing market revealed today.

Tags: Timmy Elsewhere

2 responses so far ↓

  • 1 Matthew // Apr 14, 2008 at 5:03 pm

    I think you misunderstand something about mortgages. A 2-year fixed mortgage isn’t a 2-year mortgage, that’s merely the length of time at whcih the interest rate is fixed. When it runs out, you don’t lose the mortgage unless you refinance it, it just goes automatically onto the bank’s standard lending rate.

  • 2 Monty // Apr 14, 2008 at 11:06 pm

    Matthew, wouldn’t that loss of flexibility in itself make some owners feel like baling out? Presumably many signed up to the fixed rate deals on the assumption they would be able to re-finance at the end of the honeymoon.

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