LIBOR still dropping...

Alan_Cross

inspector_monkfish wrote: »

not in the slightest!!
they have been coming lower for weeks now, and this is just a continuing trend

a few years ago there used to be mortgages available based on LIBORs, funnily enough those have all disappeared now !!

what it does show though, is that banks are able to get cheap funding, they just dont like to pass it on to their customers

Too damn true - the banks just can't get out of their self-interest psychology - and this is why HMG should be in there, reading the riot act.

LoopyPrune

inspector_monkfish wrote: »

a few years ago there used to be mortgages available based on LIBORs, funnily enough those have all disappeared now !!

My mortgage is LIBOR+2.45% and its at the cheapest its ever been atm. Is LIBOR a good thing or bad thing?

inspector_monkfish

LoopyPrune wrote: »

My mortgage is LIBOR+2.45% and its at the cheapest its ever been atm. Is LIBOR a good thing or bad thing?

well its very good at the moment, as it is coming lower everyday !

how is yours adjusted?
is it once a month?
which LIBOR rate is it based on? (i'm guessing 3mth LIBOR)
when did you set it up and how long do you have left on this deal?

sorry for all the questions !!

LoopyPrune

These are all taken from our last letter recieved from them.

• Your interest rate is determined by reference to LIBOR and is reset no more frequently than on the first banking day of every month and in any event on the first banking day of March, June, September and December in each year. So looks like 3 mth LIBOR.

• Our last letter recieved was on the 9th June 2009 where they quoted LIBOR at 1.27% which I presume is for the first banking day of June.

• Our mortgage started on the 26th May 2006 and is for 25yrs although the redemption period has passed after 3yrs I was a right to buy and therefore the council still hold a charge until 2011.

Although I was offered the 3.99% fixed deal for 5yrs with A&L I was unable to take this offer as the council requires a full valuation report from a provider and there arent many providers willing to play ball like this. So Im sorta stuck atm

inspector_monkfish

LoopyPrune wrote: »

These are all taken from our last letter recieved from them.

• Your interest rate is determined by reference to LIBOR and is reset no more frequently than on the first banking day of every month and in any event on the first banking day of March, June, September and December in each year.

• Our last letter recieved was on the 9th June 2009 where they quoted LIBOR at 1.27% which I presume is for the first banking day of June. Doesnt state if its 3mth etc

• Our mortgage started on the 26th May 2006 and is for 25yrs although the redemption period has passed after 3yrs I was a right to buy and therefore the council still hold a charge until 2011.

Although I was offered the 3.99% fixed deal for 5yrs with A&L I was unable to take this offer as the council requires a full valuation report from a provider and there arent many providers willing to play ball like this. So Im sorta stuck atm

1.27 was indeed the 3month LIBOR on 1st June.

It sounds like you should be having your rate reset every month - I would call and ask them if you are not.

3mth LIBOR is now down at 1.10, so your rate should be about 0.17pct lower, and getting even lower by the day at the moment...

good luck

LoopyPrune

Got a smile like a Cheshire Cat now. Many thanks inspector monkfish I shall continue to watch your updates.

inspector_monkfish

LoopyPrune wrote: »

Got a smile like a Cheshire Cat now. Many thanks inspector monkfish I shall continue to watch your updates.

keep watching...
if and when LIBORs start to turn upwards, that could be the time to renegotiate your mortgage terms...

can't see that happening any time soon though - although they may just flatten out a bit, and hang around these levels for a while, which i guess will suit you just fine!


below are 3mth Libor levels over the past year, so you can see how much your rate has fallen...

1st Aug 5.78
1st Sep 5.75
1st Oct 6.31
1st Nov 5.78
1st Dec 3.88
1st Jan 2.71
1st Feb 2.16
1st Mar 2.03
1st Apr 1.63
1st May 1.45
1st Jun 1.27
1st Jul 1.18
today 1.10

inspector_monkfish

LIBORs 8th July

3mth 1.08188 (down 2 1/2pts)
6mth 1.31438 (down almost 3pts)
12mth 1.61063 (down 2 1/2 pts)

Jacka87

I see that the 5yr rates have dropped a little. Does anybody know y these where rising to the peak they where at recently? If so why have they now started to fall? I am looking to remortgage at the moment for a 5 or 10yr fix and thought that since the rates went up recently along with the swap rate rise, that would mean as the swap decreases we may see a reduction in fixed rates. But the mortgage sales personat the bank says the next move for there fixes will defo be up, even tho they just went up!!!

inspector_monkfish

LIBORs 9th July

3mth 1.0625 (down 2pts)
6mth 1.28875 (down 2 1/2 pts)
12mth 1.59125 (down 2pts)