A look at LIBOR (London Interbank Offered Rates) and mortgage help at hand!
LIBOR, or the London Interbank Offered Rates to give it its correct name, is the rate at which banks buy and sell money to each other.
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Here we take a look at the London Interbank Offered Rates and it's different versions, and how it ties in with the Bank of England Base Rate. We also discuss LIBOR rated mortgage products, and provide details and information of the mortgage help we can provide.
Table of Contents:
What is LIBOR (London Interbank Offered Rate)?
So, LIBOR (short for London Interbank Offered Rate) is the rate at which banks buy and sell money to each other.
Different versions of the LIBOR rate
There are numerous different versions of the London Interbank Offered Rates, including those set on a:
- Daily basis
- Monthly basis
- 90 day (3 month) basis
- Half yearly basis, and
- Annual basis.
LIBOR and the Bank of England Base Rate
Whichever rate LIBOR is being set at, it is always closely linked with the Bank of England Base Rate (BoEBR), and its expected movement. In instances where LIBOR is set above the Bank of England Base Rate, this is a pointer that the money market anticipates an imminent upward increase in interest rates.
Similarly, if LIBOR rates are reflected lower than the BoEBR, then this can be taken as the money market anticipating a Base Rate reduction.
LIBOR rated mortgage products
Most LIBOR rated mortgage products are to be found in the adverse credit arena, and are linked to the 90-day LIBOR rate. As with other Base Rate linked mortgages, lenders operating LIBOR-linked mortgages make advances to borrowers at a rate expressed as "x percent over LIBOR". The differential margin between LIBOR and the rate charged will depend on the individual borrower's circumstances, including:
- The Loan to Value (LTV) at which the customer is borrowing - the higher the LTV, the higher the applied margin
- The number of County Court Judgements (CCJs) registered against the borrowers, if any
- The existence of Mortgage Arrears during the preceding 12-month period
- Any other adverse credit registered against the borrowers, such as personal bankruptcy, Individual Voluntary Arrangement etc.
- Employment Status
- Income Status
Does Shire Direct arrange mortgages based on LIBOR?
On some schemes, yes!
A quick call to one of our qualified Mortgage Advisors will put you in the picture as to the options that are available to you, together with a rapid in-principle decision.
We pride ourselves in providing you with a service thats both professional and friendly. We will of course carefully assess your circumstances, needs, requirements and aspirations to make sure we arrive at the most appropriate solution for you. So please don't hesitate to Contact Us if you feel we could help, naturally without any obligation! Our mortgage advisors are available up until 10.00pm everyday (including Saturdays and Sundays) on FREEPHONE 08000 282 281, or alternatively why not enquire online at any time!
Hopefully we've provided you with some clarity on LIBOR (London Interbank Offered Rates) and the help we are able to provide. Don't forget there is a wealth of information available throughout this site, so why not take a little time out to read up on the options that may be available to you, and if you feel we can help with a mortgage or remortgage, we're only ever a free phone call or couple of mouse clicks away, and we'd be delighted to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
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