From: hew_dunnit@supaworld.com (hew_dunnit)
Newsgroups: uk.finance
Subject: Re: A US LIBOR linked mortgage - what's that?
Date: 27 May 2004 03:05:47 -0700

"Abso"  wrote in message news:<2hkedlFe6ortU2@uni-berlin.de>...
> 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..

See 

LIBOR = London Interbank Offered Rate.

Can there be a US LIBOR? Or is that the dollar conversion of LIBOR?

If you go down that path, just make sure that it is the LIBOR rate
you're being offered and not some 'Shittybank' interpretation of it.