I'm looking at a mortgage that Charcol describe as: "Exclusive 2.99% Fixed then Tracker - 2.99% Fixed rate until 30/09/04, then US 3 month LIBOR rate plus 1.25% until 30/09/14, UK 3 month LIBOR plus 1.25% thereafter" AFAICS the US LIBOR is some kind of financial index which is currently sitting at about 2%. The headline APR rate Charcol are using to plug the above mortgage is 3.5% which is scorchingly low but this US LIBOR (whatever it is) wouldn't have to rise far for it to not seem like such a great deal. So.. can anyone briefly explain the US LIBOR and the prospects for it to rise in future? Ta..
- posted
19 years ago