Morgage linked to swiss franc libor

Horlock

Does anyone know anything about the Swiss Franc Libor?

I'm currently looking at a mortgage which is linked to it is and the rate seems very very favourable, but I don't know how safe the Swiss Franc Libor is.

Does anyone know anything for definate?
Does anyone have any carefully thoughtout reasoning?

As a rooky it looks like the Libor has been going up steadily (slowly) over the past 3 years - if this is the case is it likely to keep going up - or will it drop again.

I know that obviously noone knows for definate - but people probably have a better idea than me - who knows nothing!

Ian_W

Don't know the first thing about the Swiss franc Libor, by the sound of it neither do you - so I would avoid.
2 yrs ago Skipton [and maybe others] were doing 7yr fixed tied to the US Libor which at the time was very low. See this post http://forums.moneysavingexpert.com/showthread.html?t=132429
or this one
http://forums.moneysavingexpert.com/showthread.html?t=130123
US Libors gone up pretty much ever since and these folks are stuck on a very uncompetitive rate or a £5K buy-out.
If it's a long term fixed with high redemption penalties I'd leave well alone and stick to UK based rates - least then you can moan at the BoE, instead of the gnomes!!

michaels

THese products are really aimed at those who are closely linked to the country/currency in question - eg if you work for a Swiss bank in London where your pay/bonus might be in Swiss Francs. If you need to ask it probably means the product isn't for you. After all taking a floating or fixed sterling mortgage is a bit of speculation on what UK rates will do but at least you can guess that they will move in tune with the UK economy wheras the swiss rates could just as easily move the opposite way, increasing when we are in deep recession for example.

MortgageGenie

Hi,

Very wise comments from both Ian & Michaels! I don't know your personal circumstances however based on the limited information in your post I would strongly urge you to avoid these style of mortgages.

Very high risk but here's another example.