APR -25 years

[tali122]

mortgage deals always carry plenty of smallprint and warnings (your home may be repossessed) but i cant understand that when they mention the APR figure that there is nothing at all stating that "over the 25 years intrest rates could drop or rise dramatically or maybe subject to new legislation beyond the control of the mortgage lender and that the APR figure quoted should not be deemed strictly accurate and only as a short term guide" - i dont understand how they simply give a APR figure -unless very little happens in 25 yrs and is not worth mentioning?

[Loosehead]

They don't just give an APR it's followed by the word Variable if it's err variable!

[tali122]

it still doesnt go anywhere near to quantifying what may or may not happen in 25 years - simply stating "variable" is relevant but to 25 months perhaps but certainly not years

[Loosehead]

Well I don't see what else they can do. Rates go up and down, gawd knows what can happen in a 25 year period. I remember my mortage being 15.4% once, if someone had told me I'd be paying 4.5% in 2006 I'd have booked them into St Annes! "Variable" is the lenders way of saying they don't know.

Of course the customer can do their own research act accordingly. The history of the base rate is available readily on the net.