How we are responding to the LIBOR change
October 01 2018
From Monday 1 October 2018, the 3 month London Interbank Offered Rate (LIBOR), which is applicable to all InterBay products, increased to 0.80%, the first time it has risen above our minimum threshold of 0.75%.
We review 3 month LIBOR for our products on the first working day of each quarter, and on this occasion have decided not to pass on the rate increase to our borrowers, for both new and existing applications.
Instead, we have decided to maintain our current initial pay rates, and have reduced our product margins accordingly, which is good news for you and your clients.
The reduced margin will be applied automatically to pipeline applications, and where a borrower has already received a Formal Offer, we will write to inform them of the change.
This is all part of our ongoing mission to provide our partners with the necessary support and stability when we can – especially through times of change.