0.89% mortgage deal cheapeat ever

[MARTINX9]

I was at a meeting last week looking at long term borrowing strategies. Apparently the advisers were suggesting that interest rates are unlikely to move materially upwards - for the next 25 years!

[Naz]

On 4/25/2017 at 1:05 AM, MARTINX9 said:

I was at a meeting last week looking at long term borrowing strategies. Apparently the advisers were suggesting that interest rates are unlikely to move materially upwards - for the next 25 years!

25 year gilt rates are 1.78%, so the market expectation is that rates will not go up very much over the long term.  So whilst you can certainly lock in to a cheap borrowing rate now over say 25 years (if you are a credit worthy corporate borrower for example), that is different to saying that rates are unlikely to move materially higher, which of course they could. Probably just loose words from the adviser

[spyguy]

38 minutes ago, Naz said:

25 year gilt rates are 1.78%, so the market expectation is that rates will not go up very much over the long term.  So whilst you can certainly lock in to a cheap borrowing rate now over say 25 years (if you are a credit worthy corporate borrower for example), that is different to saying that rates are unlikely to move materially higher, which of course they could. Probably just loose words from the adviser

Markets not good a this sort of stuff. Greek yields were a bit over Bunds before the crisis kicked in.

Markets know nohting beyonds what todays prices for  buying or selling.

[interestrateripoff]

On 04/25/2017 at 1:05 AM, MARTINX9 said:

I was at a meeting last week looking at long term borrowing strategies. Apparently the advisers were suggesting that interest rates are unlikely to move materially upwards - for the next 25 years!

Given the level of debt I'd put a 0 on or it will be system collapse.