Re: Pratchett
Can someone explain to me why the UK financial industry feels that contracts for financing an asset which will take 20 to 30 years to pay for should be anything other than 20 to 30 year contracts?
The alternative to renegotiating, changing money provider etc, every 4 or 5 years, is not fixed-rate for the term. I lived for 40 years where the contracts are full-term, but you could move institution for a small fee, after I think it was about 7 years, and the rate is always at the Prime Rate of the Bank concerned plus 1%. With a two or three month notice of increase (originally 30days?).
It worked wonderfully. Of course it cramped the competitive opportunities of banks to steal clients from one another but it meant that the buyer always knew what he was getting into as much as anybody else did and it was one less thing to keep factoring into your long-term budgeting. Equity access on a 'debit card' basis has also been the norm for nearly 30 years.
Biting the hand that feeds IT
