Libor mortgage

iangolf

I had a mortgage with the Skipton for 7 years that was based on the Libor rate. Over the period of the mortgage the Libor rate increased dramatically and hence my repayments, even though the Bank of England Base Rate remained stable:mad:. Bearing in mind the recent revelations about manipulation of the Libor rate does anyone think there is any grounds for reclaiming some of the interest we paid over the 7 years? Thanks

DevCoder

simple answer, no.

In most cases the rate was manipulated to be artificially lower so it looked like interbank lending as happening at goods rates

antrobus

iangolf wrote: »

Bearing in mind the recent revelations about manipulation of the Libor rate does anyone think there is any grounds for reclaiming some of the interest we paid over the 7 years? Thanks

Possibly. But bear in mind the following:-

- one, LIBOR was manipulated by a few basis points, which can mean a lot of money if you're talking about a few hundred million, but can mean SFA on a couple of hundred k

- two, Barclays was (2007 ish onwards) manipulating LIBOR down, which would mean that actually you owe your lender some extra interest

dunstonh

Bearing in mind the recent revelations about manipulation of the Libor rate does anyone think there is any grounds for reclaiming some of the interest we paid over the 7 years?

Businesses are expected to have some recourse in future. However, retail customers are not as LIBOR was manipulation mostly understated downwards. So, you are more likely to have gained from it.

Plus, it is unlikely you had a LIBOR tracker. You are more likely to have had a lender that borrowed money using LIBOR and their standard variable rate is what you paid (it would have been set by them and not directly linked to LIBOR. It would be one of a number of things that influence the rate)

roonaldo

like what the others said

iangolf

thank you for all your replies. Appreciated