LIBOR rate dropped what does it mean for me

froggeroz

Hi there, can anyone help?
I have mortgage of 190k, based on libor rate, and want to try and work out how much my mortgage is going to drop as libor rate has just dropped 1%. I would so love to save a bit on our Mortgage as at present it is 1200.00 pcm
Anyone help? I'd really apprechiate it
xx

BargainGalore

No one is fortunately privy to know what the rate will be it is set by the BBA each day

michellefromessex

I am on Libor rate too, it has only just come down for us 1st time in 2 years, we have seen it go up every 3 months until it was nearly £400 a month more than when we took it out 2 and half years ago. We had to switch to Interest only in the end. Ours is £111,000 and we are paying £785.22 a month interest only.

froggeroz

libor rate info yesterday on bba site said libor had dropped by over 1%. Our mortgage is set on the 3 month libor which i believe is set 1st dec???? so i was just wondering if anyone had a basic calc/ rule of thumb about what our mortgage could potentially go down to. I did read some info regading for every 100k for every 1/4% drop you saved x amount, but i cannot find it anywhere
Thanks in advance for any rough ideas, it would just be great if we knew that our Jan mortgage was going to be a bit lower.
K

bizzybee

Our mortgage is based on the average Libor rate over the previous months as at 30th Sept/31st Dec/31st March/30th June.

We find this site useful:

http://www.thisismoney.co.uk/libor

http://www.thisismoney.co.uk/true-cost-mortgage-calculator

michellefromessex

Thanks so much for those links, what I dont understand is my mortgage company state that our mortgage is set no more than 1% above the libor rate, but we are paying over 8% time for a phone call. Thanks again x

lulu999

LIBOR is compiled and published daily by the BBA through Reuters and other information distributors (subscription). There's historical LIBOR rates on their website (7 days old I believe). It's also published in the FT the following day. Read the fine print in your mortgage to ascertain exactly which LIBOR rate your mortgage is reset against (there are several).