paulwrxboro

can someone please explain this in simple terms ..thats all i understand
and tell me what todays rate is ?

thinking of getting a comercial morgage and they say its ?% above libor rates

TelBoy

It's the London InterBank Offer Rate. What period mortgage are you looking at? If it's an extended period (ie over 1 year) there won't be an official Libor rate but a swaps rate, but the difference is largely technical.

ChefDude

libor rates are announced every day at 11

paulwrxboro

cheers i get in now

"What period mortgage are you looking at?"


its over 30 years

TelBoy

30 years yield right now is 3.88% on the UK 30yr Gilt, and the 30yr swap rate is 4.15%.

Mungo

But they may well use 3 Month LIBOR and reset your borrowing rate every three months....

TelBoy

It's more likely to be the 12 month rate though, for an annual review.

paulwrxboro

5% over libor is this normal on commercial morgage

ChefDude

What do you guys do for a living Mungo and Telboy?

TelBoy

Money markets trader

ChefDude

I work on buy side derivatives and swaps software (latentzero.com)

Mungo

corporate treasury manager, but i need a new job in May!

Mungo

which bank?

alcazar

iTrader: (2)

"Libor"?

I thought it was made up of "Lying" and "Labour", so I assumed it was another scam thought up by that scruffy Scottish pension thief

Alcazar