Negative rate mortgages !
As world interest rates remain historically low, banks in some countries are charging some large companies and funds to hold their deposits, a consequence of which is the introduction of negative rate mortgages to bank customers.
Recently a Danish Bank has launched the world's first negative interest rate mortgage. Effectively the Bank is paying the borrower to take money.
Another Bank is offering 20 year fixed rates of 0%.
These mortgages will most likely attract certain fees and charges that could be higher than traditional mortgages.
Unfortunately this negative mortgage development is unlikely to follow here in Ireland, where most Banks are still losing money on tracker mortgages and costs are high. It is hard to see medium term rates moving too far below their current position for a long time to come.
Currently our Best 5 year fixed rate is 2.5% and 10 year fixed is 2.85%.
2 year fixed start as low as 2.3%.