Libor stands for London Interbank Offered Rate and it’s the rate which banks in the London market lend each other money. The main differences between LIBOR and the base rate are
- LIBOR rates are set by market forces and not by an independent committee whom regularly review every month. LIBOR rates can change from day to day.
- LIBOR rates tend to be more volatile
- There are many LIBOR rates and most lenders use the three month sterling LIBOR.
LIBOR rates are not as high profile to the Bank of England rate, however some lenders do offer schemes using LIBOR rates
If your currently on a Libor rate, and wish to switch, please speak to one of mortgage advisers. We have access to the whole mortgage market. As stated, some mortgage lenders do offer LIBOR rates, we will go through the mortgage product with you initially.