Hope for mortgages as LIBOR falls further
24 October 2008
In a potential boost to the mortgage and loan markets, Wednesday saw the cost of interbank lending fall further as banks displayed increased confidence in market conditions.
Adding to several consecutive days of falls following an injection of Government cash, the overnight LIBOR rate (London Interbank Offered Rate) fell to 4.58% on Wednesday – just above the base rate.
The three-month LIBOR rate – the main measure used by lenders to set rates on mortgages – fell to 6.04%. Bringing it to 1.54% above the base rate, this fall may not have much effect on mortgage rates, but it does suggest that LIBOR is approaching a level that would allow more lenders to lower their mortgage rates.
A spokesperson for Think Money said: “It seems that we are getting closer to a point where more mortgage lenders will be willing to lower their rates, which can only be good news for the mortgage market.
“But with the mortgage market still facing uncertainty, it pays to get the right advice. We advise anyone considering taking out a mortgage or remortgage to seek expert mortgage advice beforehand.”
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Tags: libor, mortgages, loans, libor rate, libor loans rate, mortgage rates
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