Ive lately found out that my mortgage is not related to the Bank Of England intrest rates, but that of the Libor?
Answers:
don't panic... LIBOR is the 'London Interbank Offered Rate'. It's the interest rate at which banks lend to other bank.
Check out this website http://www.bba.org.uk/bba/jsp/polopoly.j…
Is your mortgage going to adjust? That is when I would worry. Then it becomes an issue of what the edge is.
If the LIBOR is at around 5%, add your margin to that to see what the fully indexed rate is. A lot of non-prime mortgages indexed to the LIBOR have ridiculous margins.
That is when you will know if you have to worry. Source(s): 7 years mortgage lend experience.
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