LIBOR still dropping...

inspector_monkfish

Purely FYI

Since the last BoE 50bp rate cut on March 5th, from 1.00pct to 0.50pct...

3mth GBP has fallen from 1.99 to 0.905 (109 basis points)
6mth GBP has fallen from 2.17625 to 1.1175 (106bp)
12mth GBP has fallen from 2.33 to 1.445 (89bp)

make of that what you will

Alan_Cross

You forgot to add the average level of mortgage rates.

Er... profiteering at the expense of the wider economy in general and mortgage payers in particular. That's what I make of it.

inspector_monkfish

Come on , who hasn't entered yet... (we got 12 at the moment)


I've set up a MoneySavingExpert Fantasy Football League for anyone that might be interested....

FREE to enter - with some good prizes if you get lucky.

Here is the link:
http://fantasyfootball.skysports.com...spx?p=2185


- Firstly, you will need to pick your team, and name it.
- Once you have done this, go to 'My Team', and scroll down to 'Private Leagues'
- Then click on 'Enter New League'
- Then scroll down to 'Joining an Existing League'
- Here is where you type in the 'MoneySavingExpert' League Pin: 2822

Good Luck
IM

PS. Prob best to put your user name in the game, as your nickname on here, so that we know who you are...

mikerocky

sounds good, might join in later this week

inspector_monkfish

LIBORs 29th July

3mth 0.8975
6mth 1.11
12mth 1.44

all 1/2pt to 3/4pt lower

inspector_monkfish

LIBORs 30th July

3mth 0.89
6mth 1.10375
12mth 1.435

all down between 0.5 and 1pt

ChuiMartinez

12m libor maybe isn't the best rate to show as it is not very liquid (lack of trading) maybe you should show 12m futures rates instead (probably slightly higher than the 12m libor rate).

still its an interesting pattern and just serves to prove the point that when the banks want to cry and rinse customers they are all to quick to do so, but when funding rates drop you, a) see or hear very little about it in mainstream media and b) there is little chance of banks dropping mortgage rates. Ok so they have a long term strategy, but even if this trends continue for 3months I doubt mortgage rates will change

inspector_monkfish

ChuiMartinez wrote: »

12m libor maybe isn't the best rate to show as it is not very liquid (lack of trading) maybe you should show 12m futures rates instead (probably slightly higher than the 12m libor rate).

still its an interesting pattern and just serves to prove the point that when the banks want to cry and rinse customers they are all to quick to do so, but when funding rates drop you, a) see or hear very little about it in mainstream media and b) there is little chance of banks dropping mortgage rates. Ok so they have a long term strategy, but even if this trends continue for 3months I doubt mortgage rates will change

yes, i realise that - but then again, currently NO periods are liquid !!

this trend in LIBOR tumbling has been carryiong on for the past 6mths, but hasn't had any effect !!

Jacka87

Maybe we should graph the results then stick the graphgh on the top of a petition and then once its been signed by loads of moneysavers we could send it to the banks & the government.

Asking the banks if they are going to continue to treat customers like this and asking the government what are they planning on doing about it.

Then they will stop all this nonesense... sorry fell asleeep and started dreaming for the last bit!

Tho I do wish that this point was brought closer to the forefront of the media.

inspector_monkfish

Jacka87 wrote: »

Maybe we should graph the results then stick the graphgh on the top of a petition and then once its been signed by loads of moneysavers we could send it to the banks & the government.

Asking the banks if they are going to continue to treat customers like this and asking the government what are they planning on doing about it.

Then they will stop all this nonesense... sorry fell asleeep and started dreaming for the last bit!

Tho I do wish that this point was brought closer to the forefront of the media.

Banks will just say they don't use LIBOR to calculate mortgage rates (just becasue it no longer suits)
They mainly use swap prices now.