Libor fixing and me

Shoulders579

Not sure if this has already been covered, my understanding is that the libor rate was artificially altered in the banks best interests that has resulted in massive fines to those involved. As the libor rate it the basis for all interest set on credit beit a loan, mortgage or credit card, of which i have all 3; is there a case to invalidate any interest paid as nobody can guarantee what it shwould have been during this time?

Angry_Cat

I didn't think all mortgages were directly linked to LIBOR. I thought some were linked to the Bank of England Base Rate plus a certain percentage or a banks own base rate plus a certain percentage.

Also wasn't Barclays fined for attempting to lower LIBOR meaning if had an impact that impact would have been we paid less interest ?

I know there is a lot more still to come out about LIBOR, I feel it will still be hard to claim compensation / damages because LIBOR is based upon bank estimates of the rates they pay not the actual rates they paid.

It will be extremely difficult based on how LIBOR is set by the British Bankers Association to prove an actual loss caused by any one lender. After all only some make submissions for LIBOR and out of those the British Bankers Association do not count the highest and lowest.

It would be nice to get a small windfall as a result of the LIBOR mess but I don't see it happening. The banks will be fined, LIBOR will be replaced by a rate based upon actual rates paid by banks rather than estimates and we will move on to another issue, such as the right of a lender to issue proceedings for the repayment of a debt after it has sold that debt to a third party (securitisation).

dunstonh

LIBOR was mostly manipulated downwards. So, consumers actually benefited.

Your mortgage rate was set by a lender. whilst internally they may have used LIBOR to help influence their rate, it would not be the only thing. You wouldnt have had a LIBOR tracker and therefore it is irrelevant to the individual.

roonaldo

Shoulders579 wrote: »

Not sure if this has already been covered, my understanding is that the libor rate was artificially altered in the banks best interests that has resulted in massive fines to those involved. As the libor rate it the basis for all interest set on credit beit a loan, mortgage or credit card, of which i have all 3; is there a case to invalidate any interest paid as nobody can guarantee what it shwould have been during this time?

no they werent. tell us how you have been affected?
i dont think you're going to get a freebie.

Yaddik

dunstonh wrote: »

LIBOR was mostly manipulated downwards. So, consumers actually benefited.

Your mortgage rate was set by a lender. whilst internally they may have used LIBOR to help influence their rate, it would not be the only thing. You wouldnt have had a LIBOR tracker and therefore it is irrelevant to the individual.

I took a mortgage out with a home lender who quoted 2.5% above barclays base rate (their borowing rate LIBOR) I was paying in excess of 9%. I am sure they ow me money + int? check Libor rates history here. no links allowed so read between the lines.

fedprimerate dot com libor libor_rates_history dot html

dunstonh

I took a mortgage out with a home lender who quoted 2.5% above barclays base rate (their borowing rate LIBOR) I was paying in excess of 9%.

Barclays base rate was barclays base rate. It was not a LIBOR tracker. Most of the mainstream banks were not fully dependent on LIBOR but a spread of reasons.

I was paying in excess of 9%. I am sure they ow me money + int?

Why?

jamesd

Yaddik wrote: »

I took a mortgage out with a home lender who quoted 2.5% above barclays base rate (their borowing rate LIBOR) I was paying in excess of 9%.

Barclays rate isn't a LIBOR or Bank Rate (Bank of England) tracker rate. It's whatever they say it is, though historically it has generally tracked the Bank Rate, not LIBOR.

Yaddik wrote: »

fedprimerate dot com libor libor_rates_history dot html

What relevance do you think the US Dollar LIBOR rate has to a UK mortgage? There isn't just one LIBOR rate, there's a different one for Sterling. And different rates for different terms for each of them.

I'm sure they might owe you money but this isn't a reason why they might, in part because the fiddling was setting the fixings to lower values, not higher, so you would have benefited.

roonaldo

Yaddik wrote: »

I took a mortgage out with a home lender who quoted 2.5% above barclays base rate (their borowing rate LIBOR) I was paying in excess of 9%. I am sure they ow me money + int?

no, you had a subprime mortgage, higher rates for higher risk customers.

baxy

We have £35k in loan notes and the interest rate has varied so much for a six month period ranging from £923.65 in 2008 down to a measly £14.91 in 2010 and slowly increasing to £97.90 in 2012.
I queried the lower rates and was told 'The interest was calculated at 0.75% below 6month stirling LIBOR rate.'
We have certainly lost out because of the LIBOR scandal so wonder if there is any way we can try to reclaim the lost interest.

dunstonh

We have certainly lost out because of the LIBOR scandal so wonder if there is any way we can try to reclaim the lost interest.

How have you lost out?

roonaldo

baxy wrote: »

We have £35k in loan notes and the interest rate has varied so much for a six month period ranging from £923.65 in 2008 down to a measly £14.91 in 2010 and slowly increasing to £97.90 in 2012.
I queried the lower rates and was told 'The interest was calculated at 0.75% below 6month stirling LIBOR rate.'
We have certainly lost out because of the LIBOR scandal so wonder if there is any way we can try to reclaim the lost interest.

this is unrelated to the libor scandal. you arent due a freebie.