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Market rates for German mortgage refinancing this Thursday (August 4, 2016; data source: Deutsche Bundesbank [German Federal Reserve Bank] - see links at bottom of post): 4 to 5 years: -0.16% 6 to 7 years: -0.03%. And the trend is down. So, I predict, that sooner or later this will feed into actual rates, i.e. sooner or later, if that trend continues, German short term mortgage rates will turn negative. As I wrote elsewhere, I don't think the UK will be immune to this folly. I will use this thread to post updates on the siuation in Germany every now and then, but I think it could also serve to monitor the UK situation and for a more general discussion about the impact of negative rates on the UK house market, or property markets in general. For instance, will BTLers soon enjoy negative IO mortgages? Getting paid for further inflating the market and for accepting a certain risk? IMO, this (negative interest on mortgages) is just a logical consquence of inflating the global bubble beyond anything a rational investor would have ever expected to happen. If you don't think this will happen, then my advice is: think twice. Data sources (direct): Time series BBK01.WT4629: Yields on debt securities outstanding issued by residents /Mortgage Pfandbriefe / Mean residual maturity of more than 4 and up to 5 years / Daily data http://www.bundesbank.de/Navigation/EN/Statistics/Time_series_databases/Macro_economic_time_series/its_details_value_node.html?tsId=BBK01.WT4629 Time series BBK01.WT4631: Yields on debt securities outstanding issued by residents /Mortgage Pfandbriefe / Mean residual maturity of more than 6 and up to 7 years / Daily data http://www.bundesbank.de/Navigation/EN/Statistics/Time_series_databases/Macro_economic_time_series/its_details_value_node.html?tsId=BBK01.WT4631

Even the banks themselves are now getting hacked off with the antics of the central banksters and are starting to mull storing their own excess deposits as cash instead of with the central bank: https://mishtalk.com/2016/06/08/negative-interest-rate-mutiny-in-germany-japan/ Just as well the central banks are abolishing the large notes to make this trickier for all concerned. I can see this being used as a pretext to get rid of physical cash, can't have people 'hoarding' their personal wealth when they could be out spending it and boosting the economy, as well as borrowing some more to cover their expenses.