Like most other sliding scale mortgages that are not fixed-rate, LIBOR mortgages track a certain type of rate. Unlike tracker mortgages, which are anchored to the Bank of England base rate, LIBOR mortgages track the LondonInter Bank Rate.
How do LIBOR mortgage work?
LIBOR mortgages, usually offered by self-certification mortgage lenders or sub-prime mortgage lenders, track the London Inter-Bank Offered Rate. This is the rate at which different banks lend money to each other in the money markets. Generally, LIBOR mortgages track the three-month LIBOR.
How much interest do I pay on a LIBOR mortgage?
Unlike base rate anchored mortgages, when the rate can go up, down or be maintained once every month, LIBOR mortgages are adjusted following a review every three months. LIBOR mortgages arevariable rate loans.
Where can I learn more about LIBOR mortgages?
There is more LIBOR mortgage information online, in particular at: www.bba.org.uk.
How do I find a LIBOR mortgage?
For more information about LIBOR mortgage loans and to get a LIBOR mortgage loan quote, please use our Mortgage Enquiry Form and one of our experts will contact you for further assistance.