Remove ads

Introducing the LemonFools Personal Finance Calculators

Negative rate mortgage!

toofast2live
Lemon Slice
Posts: 416
Joined: November 4th, 2016, 2:24 pm
Has thanked: 2 times
Been thanked: 70 times

Negative rate mortgage!

#227390

Postby toofast2live » June 6th, 2019, 10:16 am


dealtn
2 Lemon pips
Posts: 132
Joined: November 21st, 2016, 4:26 pm
Has thanked: 10 times
Been thanked: 72 times

Re: Negative rate mortgage!

#228019

Postby dealtn » June 8th, 2019, 4:22 pm

I was on a mortgage rate of Base Rate less 52bps for a 3 year "teaser" period some years ago. When the MPC reduced Base Rate to just 0.50% I had an "interesting" conversation with the provider on how I could set up a direct debit for their payment to me. Obviously no such arrangement took place, but there was no restriction, or floor, to the effective rate, so for a period of time my mortgage balance was reducing whilst my monthly payments were £0 each month.

Spet0789
Lemon Slice
Posts: 812
Joined: June 21st, 2017, 12:02 am
Been thanked: 53 times

Re: Negative rate mortgage!

#228020

Postby Spet0789 » June 8th, 2019, 4:42 pm

I doubt this is true. 10 year bund (German government bond) yields are at around -0.3%. So even though this is in DKK it feels low to me. In Switzerland government bond yields are more negative still and they have 10 year mortgage rates in the 1-1.5% area.


Return to “Mortgages”

Who is online

Users browsing this forum: No registered users and 1 guest