Loans, lending & LIBOR
September 6, 2009 by Stacy42
Every time the Bank of England’s (BoE’s) base rate goes down, the price of some existing loans and mortgages – known as ‘tracker’ loans and mortgages – will change immediately. After all, they’re called tracker loans and mortgages because they track the base rate.
Lenders may also drop the cost of their new loans and mortgages – and of their existing SVR (Standard Variable Rate) loans and mortgages – but they don’t have to. The base rate isn’t the only factor in lenders’ calculations. When they’re figuring out how much to charge for credit (from fixed-rate mortgages to debt consolidation loans), they also look at the state of the economy, the availability of credit from the BoE and from other lenders, the probability of other lenders going bust…
Basically, when banks are worried, they’re less likely to offer loans – not just to consumers, but to each other too. It’s partly because they’re worried about their own finances and partly because they’re worried about each other’s!
The average interest rate at which banks offer loans to each other is called the LIBOR (London Interbank Offered Rate), and this is the rate that really indicates how much a loan (a debt consolidation loan, for example, or a mortgage) will probably cost you. In general, when the banks are feeling confident, the LIBOR rate will be close to the base rate. When they’re not, it’ll be higher, as banks increase their margins to bring in bigger profits.
So LIBOR matters – not just for would-be homeowners, but for people in debt, too. An example: Mr Smith can’t really keep up with his repayments to his unsecured debts, and he’s thinking about taking out a debt consolidation loan to pay off all his unsecured debts in one go. If the LIBOR rate is low, he may well find a debt consolidation loan at a good rate; if it’s high, any debt consolidation loan he finds could cost him more.
For Mr Smith, it’s an important issue. After all, one thing that people like about debt consolidation loans is that they let them pay off their high-interest debts with a relatively low-interest loan. The lower the rate on that debt consolidation loan, the more appealing the idea of debt consolidation is.
So the higher the LIBOR rate, the less likely Mr Smith is to go ahead and take out a debt consolidation loan. If the only loans he can find would come with high interest rates, he may decide to look into different debt solutions – different ways of reducing his monthly debt repayments and bringing his finances under control. If, for example, he genuinely can’t keep up with his monthly debt repayments, a debt management plan could help him bring them down to a level he can afford.
Of course, even if he finds a debt consolidation loan with a low interest rate, he might still be better off with a debt management plan. And debt consolidation and debt management aren’t the only debt solutions available – so the best way for Mr Smith to get started would be to talk to a professional debt adviser who can explain all his options and help him choose the most appropriate one.
debt solutions for financial freedom | Financial Debt
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Their web page has a PR 3, meaning that they've been around for a while.
This doesn't mean that they will be alright for you, use your own discretion
Treasuries Advance as Traders Cut Inflation Bets, Euro Weakens: The London interbank offered rate, which banks pay…
great video, i only know about the fraud of the federal reserve across the? pond, just started learning about this so I can try to tell people about it over here as people will have more interest..
RIPPING US OFF BIG TIME- NOT ONLY WITH LIES FROM THEIR SALESMEN MINISTERS!!
Bank of England – ABOLISH IT!
As you will know if you have been following the articles on this site, the Bank of England is a company wholly owned by the British Taxpayer. And yet, we have no say in how it is run, or its activities.
Ever since its creation in 1694, it has worked for the private banking fraternities. Over the years, it has gained more and more power over Britain. In 1844 it gained the monopoly on the production of Sterling. Today, it controls our currency and monetary policy as a completely independent institution.
Have you ever wondered how currency is created? Have you ever wondered why it is that a so-called sovereign nation state has to borrow its so-called sovereign currency from commercial banks? Have you ever wondered why the Bank of England is able to print money to bail out their friends in the commercial banking world, and yet the British government can’t afford to invest in our basic economic infrastructure? Have you ever wondered how much of our tax money goes towards making interest payments on the national debt?
The first Rothschild said, “Give me control of a nations currency, and I care not who makes its laws.” The true sovereignty of this nations lies with the Bank. Until we remove the stranglehold of national debt, we will never be a free nation, free to govern ourselves.
So we are calling for the abolition of the Bank of England. Lock, stock and barrel. Today.
How?
They are committing fraud. That is clear. We need the proof. I suggest we start with Bank of England Nominees Limited, but if you have other, or better, ideas, let me know.
In a recent article, I mentioned Bank of England Nominees Limited. This is a wholly owned subsidiary of the Bank, and as such, you would think, is owned by the taxpayer. You would think, therefore, that finding out what it does would be an simple task.
And it is, up to a point.
Under Freedom of Information, we are entitled to ask what BOEN does. I’ve done that, and the answer is simple – NOTHING.
It is a nominee company, and in this case, it is used to hold ASSETS on behalf of Bank of England CUSTOMERS.
Eh?
What Bank of England customers?
Why does the nation’s bank have any customers, other than the Government?
Now, it goes without saying that because of Data Protection legislation, we can’t find out who these customers are. Nor can we find out what assets are held by BOEN, nor for whom they are held.
So we are launching a campaign to try to find out.
Below you can find a template for a Freedom of Information Request to the Bank. Ask the same questions of your MP. Ask your MP to ask a Parliamentary question. If he won’t do that, why not?
Let’s find out what’s going on here! Let us know the responses you get, and we will publish them here.
Template for FOI request:
Dear Sir/Madam,
I am writing to request information under the Freedom of Information Act.
1. Please list all customers of the Bank of England.
2. Please list all owners of assets held by Bank of England Nominees Limited.
3. Please list all assets held by Bank of England Nominees Limited.
4. If for any reason you are unwilling or unable to answer the above questions, please outline how the Bank of England avoids conflicts of interest. How does Parliament or the public know, for example, that if the targets which the monetary policy committee are expected to meet are breached, that this breach was not as a result of a decision made for the benefit of a Bank of England customer, rather than the nation?
I would prefer that you respond by email to .
Many thanks and regards,
etc.
FABIAN BANKERS THAT IS!!!