Paul Archer’s Mortgage Lunchtime Livestream – 2022 Oct 17 – Why are fixed-rate mortgages so high?

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Paul at https://paularcher.thinkific.com returns on his birthday to chat with you about the current market turmoil here in the UK. Why are short-term fixed mortgages so expensive? It's because of the gilt firesale and expectations of future higher interest rates. Paul wants to summarise briefly what a Gilt Yield is. With that one in the bag, Paul then covers what a Swap is and how this prices fixed-rate mortgages. If you're still interested in knowing exactly why the gilt market is in turmoil, Paul explains. Its to do with a system called LDIs – Liability Driven Investments – essentially insurance that pension firms running pension funds obtain to keep their costs down. However, the gilt yield rise is causing them to have to find the cash to fund the LDIs and the primary way they do this is by selling gilts. This impacts fixed-rate mortgage costs. 30 minutes or so; Paul will explain it all visually, and you'll be better placed to understand the current mortgage market when chatting with your clients.