Libor Takes A Tumble 3.21%

speedbird1973

ManAtHome wrote: »

Alternative theory - as interest rates are lowered in panic, borrowers pay down their debts and savers have less interest to spend...

ManAtHome.. "borrowers pay down their debts" is me all over this time through :T so I won't disagree with that side of your theory, although i'm not convinced it works for everyone.

kelz85

This might be a silly question, but if the libor rate is down, how quickly can we expect a difference in the rates available from lenders?

amscss

I use the following website to check the LIBOR rate (which is a link to the FT website), but also to check longer term swap rates which are more generally linked to fixed rate mortgage rates than other measures.

http://www.swap-rates.com/UKSwap_extended.html

Kez100

Baz wrote: »

Doesn't matter what the rate is, if they still won't lend to each other nothing will change will it.

Fingers crossed some cheap 5 year 4.5% fixes come along.

Seen a 5.36% 5 yr fix today (albeit with a 1500 fee)

neverdespairgirl

You are looking at the wrong rate.

The overnight LIBOR isn't that relevant to mortgages. It's been lower than the longer rates for a while. Banks have been happy to lend to each other for 24 hours, it's longer lending they've been unhappy about.

As I understand it, although i could be wrong, the 3 month LIBOR today (10th Nov) was 4.21%. A week ago, it was 5.77%.

So it has, of course, dropped a lot in a week. But it's the same difference above the base rate, and that difference is, historically, very big.

econo_2

I don't share some of the pessimism. Libor for October was at 6.3% if it has fallen to the quoted 4.2% or so that shows clearly that banks are starting to lend to each other and at hugely lower levels. I think within 6 months we will see mortgages offered for people with low LTV's and with solid credit scores at the lowest rates in a lifetime. Banks don't make money unless they lend and sooner or later it will have to be business as usual.

Vertigo1

Kez100 wrote: »

Seen a 5.36% 5 yr fix today (albeit with a 1500 fee)

Britannia are still offering 5.34% fixed for 3 years with no fee for existing borrowers - is this a good deal you reckon?

WestonDave

Todays 3 month LIBOR rate is 4.38% down from 4.42% yesterday. http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=455630&in_page_id=3

nobblyned

WestonDave wrote: »

Todays 3 month LIBOR rate is 4.38% down from 4.42% yesterday. http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=455630&in_page_id=3

Down 1.9% from a month ago.