Hi,
I see Leeds & Holbeck are offering a tracker mortgage based on the US LIBOR + 0.99%. This is currently 1.14% + 0.99% = 2.13%. The term is until 2011 with 5% of loan penalties if you want to leave.
What are your thoughts on this? How stable is the US LIBOR?
Thanks, Pete.
I Don't know, but when my mate took one out through a brokers (not L&H) but the deal was identical, i said that 8 years was a long time to be tide in.
SB often mentions his flexible mortgage that is 0.50% above the BoE rate that has no exemption penalties.
Looks like Banks & BS are pushing the lower interest rates of the US to sell mortgages.
The good news is the US have said that they will keep interest rates low until the economy picks up.
The bad news is that the rate is loaded by 0.49% greater than UK mortgages and there are penalties for 8 years.
So you need the US LIBOR to always be 0.49% less than BOE rate for 8 years, but also you best not redeem the mortgage or default on any payments.
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