From: "adm" 
Newsgroups: uk.finance
Subject: Re: US LIBOR linked morgage ?
Date: Fri, 10 Sep 2004 21:51:50 +0100


"Phillip Deackes"  wrote in message
news:slrnck42eq.3jm.news@scgf.local...
> In article , adm wrote:
> > Anyone know anything about LIBOR linked mortgages ?
>
> US LIBOR based mortgages seem attractive but usually involve a penalty
payment
> if you pay the loan off early so you are, to some extent, locked in.

Agreed. That is the downside.
>
> At the end of the day, who knows how rates will go. If we knew the answer
we
> would all know exactly which product to buy. I took the risk - as you say,
the
> US LIBOR rate has tended to be lower than the Bank of England rate. At the
> moment I am saving quite a bit each month, but I am quite prepared for the
> rates to exceed the UK rates at some point - the world is a rather
volatile
> place at the moment.

Sad, but true.

>
> I wouldn't buy into a product which was in US Dollars, though - the
exchange
> rates could easily wipe out any advantage at the drop of a hat.

Agreed. The one I'm looking at is in Sterling though.
>
> There are plenty more knowledgeable people in this group who could help -
but
> having scoured Google Groups for help myself, the rather sneering response
> seemed to be along the lines of 'if you have to ask you shouldn't buy the
> product' ;-)

Yeah - I see what you mean.
>
> Hope these ramblings are of some use. At least you are hearing from
someone
> who has bitten the bullet and gone along the path you are interested in!
>

Thanks, you've been very helpful indeed.