Insanity is doing the same thing over and over again and expecting different results.
That apocryphal quote may not really have come from Albert Einstein but Britain does need to wean itself off the insanity of the two-year fixed rate mortgage.
Once again, our love of fixing the interest rate on a lifetime debt over a period that flashes by all too quickly, is massively exacerbating problems in the mortgage market.
Two-year fixed rates aren't responsible for the current mortgage mayhem - we have years of Bank of England and government economic blundering to thank for that - but they are certainly compounding the misery.
I certainly don't blame anyone for taking one out, as two-year fixes are heavily pushed by the mortgage industry, but I do think lenders and regulators need to take a long hard look at why they still allow this without a serious financial health warning.
Fixed rate mortgage costs have rocketed and those coming off two-year deals are facing the most pain
It should be stated that if you have to take a home loan right now, it's possible a two-year fix might not be a bad idea, but in general these are a problem in our mortgage market not a solution.
An inflation-driven panic has sent base rate expectations, gilt yields, money market swap rates and ultimately mortgage rates soaring.
The average two-year fixed mortgage rate across all deposit levels has rocketed to 6.19 per cent and rising.
This means that unfortunate borrowers whose two-year fixed rate mortgages are up for renewal are staring down the barrel of huge increases in their monthly payments.
In June 2021, the average two-year fixed rate for a borrower with a 25 per cent deposit was 2.17 per cent, according to Moneyfacts.
The average rate on the same mortgage now is 5.94 per cent.
For someone with a £200,000 mortgage over 25 years, this is a £417 difference between paying £864 per month and £1,281.
For those coming off five-year fixes, it's not quite as painful - as rates on those were slightly higher in 2018 and are slightly lower now.
Nonetheless, they still face a big jump in costs.
Using the same mortgage example as above but comparing five years ago to now, our true cost mortgage calculator shows monthly payments are £324 higher.
In many countries though, even a five-year fix would be considered short-term.
In the US and France, for example, it's perfectly normal to fix your rate for 25 years.
People take their home loans with them when they move and their housing markets are no worse than ours is.
Mortgage rates may be slightly higher if you fix for the long-term, but that helps keep house prices in check compared to wages. Super low short-term fixed mortgage calculator tn (www.blurb.com) rates certainly haven't done us any favours on house prices in Britain.
Michael Gove had a point when he flagged why a mindset shift to longer-term fixed rate mortgages would be a good idea for the UK this week.