LIBOR stateside tracker mortgage

grayoo

Anybody taken out a mortgage based on the US LIBOR 3 month rate ?
Skipton have a 7-year tracker, with a rate at +1.5% above the LIBOR rate which is approx. 3% at the moment, giving a rate of 4.42%.
I'm remortgaging and was wondering if the LIBOR rate is particually volatile, as it has gone up a little recently. Otherwise, It does seem very good. Any thoughts ?

Froggitt

I suspect the reason that everyone hasnt remortgaged to Skippie is risk.....compared to a 4.75% tracker 5 years from First Active, I know which one I would go for.

Woby_Tide

there have been a few discussions in the past about Skiptons LIBOR mortgages, use the search facility for LIBOR and it should bring up 2 or 3 which have a few opinions and views on these mortgages

Fairdo_2

This is on the US equivalent to LIBOR, not actually the LIBOR (London Inter-Bank Offered Rate).

It has been a fantastic product for those who took it initially, but as mentioned by grayoo, the LIBOR (US) rate is looking a bit more volatile these days and there is more likelihood that it will go up.

As you would be tied in to a penalty period then I would say this is less attractive as a proposition. However, each to their own and this can still be attractive to some.

I think Accord Mortgages also do a product of similar note.

I would agree with Froggitt and suggest that a more mainstream Base Rate product may be less of a risk, if you are keen on a variable rate.