Brexit UK Libor help!

Bexter4880

Hello all,
Well it is what it is whether we agree or not but I would really like some help from someone that understands the UK Libor rate please. We have a mortgage that changes every three months based on the uk Libor rate (I understand that this is the rate that banks lend to each other). I have searched and searched but cannot find anything that helps me understand how brexit will affect this rate.....does anyone have a clue? Thanks in advance

Becky:o

ACG

Nobody has a clue.
Libor is always more volatile than the base rate but I can not see it doubling. The bank of England has already said they will do what they need to in order to ensure things carry on more or less as normal.

Give it a week or so, things will calm down. If in doubt, can you not fix?

JimmyTheWig

ACG wrote: »

Give it a week or so, things will calm down. If in doubt, can you not fix?

Are fixed rates today worse than they were yesterday?
Are the decent fixes being pulled?

MEM62

At the moment nobody knows. Any reaction at the moment is, understandably, knee-jerk. Give it a few weeks and things will be more settled.

ACG

No, lenders are saying business as usual inthe main.
The one exception is a lender launched a product last month which put them up there with the best of them in the adverse market. That will get pulled tonight but I suspect that is more down to the funding they had for it being used up rather than anything else as all of their other products are still there and at the same rates.

JimmyTheWig

Thanks ACG, that's interesting to know.
(Only from a theoretical point of view for me, I fixed a couple of weeks ago.)

Bexter4880

Thank you for replying. Yes I think I won't panic and try and find something that's fixed.

stator

Libor rate is vulnerable, why would you want a mortgage tied to that?
It's not unimaginable that when Greece defaults on it's debts or whatever-the-next-euro-crisis-is that it will cause problems for the banks and inter-bank lending.

Thrugelmir

stator wrote: »

Libor rate is vulnerable, why would you want a mortgage tied to that?
It's not unimaginable that when Greece defaults on it's debts or whatever-the-next-euro-crisis-is that it will cause problems for the banks and inter-bank lending.

Italian banks are the biggest issue for the European banking system. Some of the German ones aren't in great health either.

sitesafe

JimmyTheWig wrote: »

Are fixed rates today worse than they were yesterday?
Are the decent fixes being pulled?

The rates I was quoted last week were the same as the ones that I was quoted today when I rang Santander...which I was pleased about....but that's not Libor so isn't probably answering your question

Detroit

sitesafe wrote: »

The rates I was quoted last week were the same as the ones that I was quoted today when I rang Santander...which I was pleased about....but that's not Libor so isn't probably answering your question

Same here. Made a full application today and rates were exactly the same as quoted 3 weeks ago.