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Old 21.08.2011, 08:25
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LIBOR mortgage - best spread

now that 3 month chf libor is pretty much zero, i'm left with mainly the bank spread of 88bp over libor.

although probably too difficult/much hassle for me to change it now, i wondered what others were being charged for a 3 month libor loan? i'm guessing that now, they are desperate to get the money away.
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Old 26.11.2013, 15:01
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Re: LIBOR mortgage - best spread

Anyone care to update this?

The margin has increased, so I am told but what are the ranges people are paying?
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Old 26.11.2013, 15:05
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Re: LIBOR mortgage - best spread

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Anyone care to update this?

The margin has increased, so I am told but what are the ranges people are paying?
92bps IIRC

When LIBOR was 0.25% I was playing 65bps!!!
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Old 26.11.2013, 15:29
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Re: LIBOR mortgage - best spread

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92bps IIRC

When LIBOR was 0.25% I was playing 65bps!!!
I guess the biggest risk is the banks could stop giving LIBOR loans or jack the margin up substantially as as has happened in the UK.
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Old 26.11.2013, 15:50
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Re: LIBOR mortgage - best spread

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I guess the biggest risk is the banks could stop giving LIBOR loans or jack the margin up substantially as as has happened in the UK.
TBH <1% is a bargain however you cut it!

In fact <3% is cheap long term debt.
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Old 26.11.2013, 16:11
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Re: LIBOR mortgage - best spread

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I guess the biggest risk is the banks could stop giving LIBOR loans or jack the margin up substantially as as has happened in the UK.
Yup. Financing long term liabilities with short term funding has been something that has caught out quite a few

Putting 100% in 3-month LIBOR may be a bit unwise unless you think you can come up with alternative funding for the whole mortgage in 3 months!

It may makes sense to layer the mortgage. e.g. LIBOR portion, 5 year fix, 10 year fix. All mortgages are currently free money so worth fixing or milking the LIBOR rates while you can. Unfortunately, you probably have to buy a vastly over-priced house to benefit!
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Old 26.11.2013, 16:16
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Re: LIBOR mortgage - best spread

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TBH <1% is a bargain however you cut it!

In fact <3% is cheap long term debt.
Assuming we don't have deflation & the value of the assets fall. Gearing is never risk free:mannered:
Allowing B permit holders caused a spike in the market, if the old rule of C permit holders & Swiss only can buy property returns, there will be tears.
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Old 26.11.2013, 16:23
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Re: LIBOR mortgage - best spread

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Assuming we don't have deflation & the value of the assets fall. Gearing is never risk free:mannered:
Allowing B permit holders caused a spike in the market, if the old rule of C permit holders & Swiss only can buy property returns, there will be tears.
I'd marry a Swiss person in that eventuality and get a passport
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Old 26.11.2013, 16:27
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Re: LIBOR mortgage - best spread

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I'd marry a Swiss person in that eventuality and get a passport
A great plan except for just 2 small flaws:

1) Would a Swiss girl marry you?
2) Would a Swiss girl marry you?

I thought it such a big flaw that I ought to mention it twice

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Old 26.11.2013, 16:56
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Re: LIBOR mortgage - best spread

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A great plan except for just 2 small flaws:

1) Would a Swiss girl marry you?
2) Would a Swiss girl marry you?

I thought it such a big flaw that I ought to mention it twice

well, i had 3 offers since my last post, so there must be a viable backup plan in there somewhere!
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Old 26.11.2013, 17:05
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Re: LIBOR mortgage - best spread

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well, i had 3 offers since my last post, so there must be a viable backup plan in there somewhere!
You are aware that is because your photo and contact details were included in the 2013 "Chinese Husbands" catalog

I believe Katherine (51), never married, 155cm, 155kg - who lives with her mother in a 2-zi apartment, works in Denner and lists her hobbies as "Blick" will make a loving wife for you.

I believe a good opening line in such situations is "Brace yourself"
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Old 26.11.2013, 17:08
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Re: LIBOR mortgage - best spread

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A great plan except for just 2 small flaws:

1) Would a Swiss girl marry you?
2) Would a Swiss girl marry you?

I thought it such a big flaw that I ought to mention it twice

Why restrict Phil to marrying girls?
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Old 26.11.2013, 20:32
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Re: LIBOR mortgage - best spread

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Yup. Financing long term liabilities with short term funding has been something that has caught out quite a few

Putting 100% in 3-month LIBOR may be a bit unwise unless you think you can come up with alternative funding for the whole mortgage in 3 months!

It may makes sense to layer the mortgage. e.g. LIBOR portion, 5 year fix, 10 year fix. All mortgages are currently free money so worth fixing or milking the LIBOR rates while you can. Unfortunately, you probably have to buy a vastly over-priced house to benefit!
I am 100% on a 1 month libor that's been at less than 1% for the past 5 years. Risky? Well that's a shed load saved over if we had fixed it and yes we are getting there on the paying off the whole mortage. Our house wasn't great value 8 years ago but similar ones in a worse location sold for 1m more that we paid, so thinking off offloading ours but we will still need somewhere to live! It is our home, not an investment and a perfect location now I am commuting again.
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Old 23.01.2015, 16:33
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Re: LIBOR mortgage - best spread

Any updates on where to get good LIBOR rates?
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Old 23.01.2015, 17:09
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Re: LIBOR mortgage - best spread

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Any updates on where to get good LIBOR rates?
I've just fixed one of mine with a cantonal bank in Swiss Romande at 0.86% (Jan) and another in Dec (0.92%)

Maybe see what ZKB will do ?

Apparantly if you fullfil certain (restrictive) criteria, Homegate advertise 0.74%
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Old 23.01.2015, 17:11
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Re: LIBOR mortgage - best spread

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I've just fixed one of mine with a cantonal bank in Swiss Romande at 0.86% (Jan) and another in Dec (0.92%)

Maybe see what ZKB will do ?

Apparantly if you fullfil certain (restrictive) criteria, Homegate advertise 0.74%
Does yours have a fixed repayment schedule or do you have an early repayment option?
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Old 23.01.2015, 18:30
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Re: LIBOR mortgage - best spread

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Does yours have a fixed repayment schedule or do you have an early repayment option?
No fixed repayment 3 months notice to repay whetever i want (nothing as money is too cheap at present, makes no sense to repay)
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Old 23.01.2015, 20:01
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Re: LIBOR mortgage - best spread

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No fixed repayment 3 months notice to repay whetever i want (nothing as money is too cheap at present, makes no sense to repay)
yeah. one bank i went to had a LIBOR mortgage but you had to fix a term without chance of redemption which seemed weird (i.e. keep the whole amount for 3 years or whatever the term you agree).
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