Libor

peterjohnson007

how do lenders actually claculate thier LIBOR rate?
also on a repayment mortgage of 80,000 over 30 years with a repayment of 591 per month what is the calculated rate of intrest on this please???

thanks

homer_j_3

a lot of sub prime lenders will use the 90 day Libor rate, hence why we have had posts recently with people saying their interest rates keep rising and fluctuating.

On a repayment method, I get it at about 8.06%

peterjohnson007

homer_j wrote: »

a lot of sub prime lenders will use the 90 day Libor rate, hence why we have had posts recently with people saying their interest rates keep rising and fluctuating.

On a repayment method, I get it at about 8.06%

so with the quarter point raise for this month that will put the payment at about 620 for 90 days right?

homer_j_3

no LIBOR has nothing to do with BOE. London Inter Bank Offer Rate can be normally found in major financial papers or http://www.bankrate.com/brm/ratewatch/other-indices.asp

your product will most likely be a % above libor.

peterjohnson007

thanks very much joek

peterjohnson007

peterjohnson007 wrote: »

thanks very much joek

sorry, homer lol