We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

LIBOR linked mortgages

Following the first conviction for fixing LIBOR rates, are there any implications for the millions of mortgages whose rates were linked to LIBOR? If interest rates were being manipulated were we all paying too much interest? I would love to hear MSE views and anyone elses.

Comments

  • kingstreet
    kingstreet Posts: 39,326 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No. It was the other way round.

    Borrowers actually benefitted from lower rates as it was a case of illegal suppression, not inflation.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • TrickyDicky101
    TrickyDicky101 Posts: 3,534 Forumite
    Part of the Furniture 1,000 Posts
    martin242 wrote: »
    Following the first conviction for fixing LIBOR rates, are there any implications for the millions of mortgages whose rates were linked to LIBOR? If interest rates were being manipulated were we all paying too much interest? I would love to hear MSE views and anyone elses.

    Maybe those with Libor linked mortgages who have benefited should go find a banker to hug? Maybe offer to buy them a coffee too.
  • They have now taken setting of these rates from the Bank of England and they are now set on a recognised exchange called the Inter Continental Exchange so they can fiddle these again. Those lovely bankers! One of them did get 13 years in prison last week though so not all bad.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • antrobus
    antrobus Posts: 17,386 Forumite
    They have now taken setting of these rates from the Bank of England and they are now set on a recognised exchange called the Inter Continental Exchange so they can fiddle these again. Those lovely bankers! One of them did get 13 years in prison last week though so not all bad.

    The Bank of England never set LIBOR. It was administered by the British Bankers Association, which is quite a different organisation.

    P.S. And it was 14 years, not 13.
  • antrobus
    antrobus Posts: 17,386 Forumite
    kingstreet wrote: »
    No. It was the other way round.

    Borrowers actually benefitted from lower rates as it was a case of illegal suppression, not inflation.

    At various times it seems that LIBOR was fiddled both upwards and downwards.

    More to the point, when we are talking about 'fixing' the rate, you are talking about maninpulating (say) the one year sterling rate from 1.07275 to 1.07000. If you are bank and are talking about a few billion quid, that little difference can mean a lot. But if you are a private individual, you'd have to have a pretty big mortgage for that difference to even amount to a £10 a year.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.9K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.1K Spending & Discounts
  • 244.9K Work, Benefits & Business
  • 600.5K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.