Please help- LIBOR- what is the current rate and will my mortgage payments go down???

crob83

I am hoping you can help... my husband has a 30-year mortgage out on his flat with Platform and the fixed period is due to end in August.

Currently his rate is 6.24% paying out £422.70 a month.

The contract (drawn up in Aug 2007) states that after this fixed period "the mortgage will revert to variable tracker rate, which is 2.25% above the LIBOR, currently 5.87%, giving a current rate payable of 8.12%. This variable rate will apply for the remainder of the term of the mortgage following the end of the fixed rate period.."

What is the curent LIBOR rate and will his payments go up or down?! Thanks for your help!

happybroker

Platform's website is quoting LIBOR at 1.38% which will make his pay rate 3.63% so yes, his payments should go down assuming LIBOR doesn't go through the roof over the next few weeks.

belfastgirl23

It's always worth doing a search before starting a new thread

http://forums.moneysavingexpert.com/showthread.html?t=1602429

payless

best phone them some of their products state ( whether this is a more recent clause on ne business only ???)
"

*As LIBOR falls below 3.00% the initial/reversionary rate will be charged at 3.00% + product reversionary rate loading "